As Airbnb and short-term rentals grow in popularity, many homeowners see an opportunity to earn extra income. But one key question remains—does your homeowners insurance cover Airbnb stays?

Standard policies often have gaps when it comes to short-term rentals, leaving property owners vulnerable to damage or liability claims. This article breaks down how homeowners insurance applies to Airbnb, where coverage may fall short, and what solutions—like endorsements or specialized policies—can help.

Whether you’re a seasoned host or just starting out, knowing your coverage is essential to protecting your investment and avoiding costly surprises.

Understanding Homeowners Insurance for Airbnb Rentals

Figuring out homeowners insurance for Airbnb rentals can feel overwhelming. Standard policies focus on owner-occupied homes and often don’t cover short-term rental activity. Most homeowners insurance policies exclude business use, meaning Airbnb hosts may face uncovered damage or liability claims. If you plan to rent out your home, reviewing your policy and discussing coverage options with your insurance provider is essential.

Your insurer might recommend adding an endorsement (a policy add-on) for extra protection or suggest switching to a landlord or commercial policy designed for short-term rentals. Without the right coverage, you could end up paying out of pocket for damages or legal claims from guests.

Airbnb offers some protection through its Host Protection Insurance and Host Guarantee programs. These programs provide limited coverage for liability and property damage, but they come with exclusions. Relying solely on Airbnb’s protections can leave gaps in your coverage. For example, they may not cover certain types of damages, liability claims, or lost rental income.

To avoid costly surprises, make sure you understand how your homeowners insurance works alongside Airbnb’s programs. Talking with both your insurer and Airbnb can help you secure the right coverage and give you peace of mind while hosting.

Key Coverage Areas in Your Policy

Understanding how your homeowners insurance applies to short-term rentals is essential if you plan to host on Airbnb. Your policy typically includes coverage for your dwelling, personal property, liability, and additional living expenses—but these protections may not fully extend to Airbnb rentals. Some policies even include exclusions for short-term rental activities, leaving gaps in coverage.

Dwelling and personal property coverage protect against damage from events like fires or storms. However, if a guest damages your property during a rental period, your policy may not cover the repairs unless it specifically includes short-term rental protection.

Liability coverage plays a crucial role in protecting you from legal responsibility if a guest gets injured or their belongings are damaged on your property. Standard liability coverage often excludes paying guests, which means you could be left unprotected in the event of a claim. To fill these gaps, your insurer may recommend an endorsement or a specialized short-term rental policy.

Discussing your hosting plans with your insurance provider ensures you have the right coverage in place. Taking proactive steps now can help you avoid unexpected expenses and give you peace of mind while renting out your home.

Potential Risks of Hosting on Airbnb

Before listing your home on Airbnb, it’s important to recognize the potential risks and take steps to protect yourself and your property. Property damage is one of the biggest concerns for hosts, as guests may unintentionally—or even intentionally—cause harm to your home or belongings. While Airbnb provides Host Guarantee and Host Protection Insurance, these programs don’t cover everything. Wear and tear, certain exclusions, or policy limitations might leave you financially responsible for repairs. Additionally, filing multiple claims or dealing with significant damages could lead to higher insurance premiums or even impact your eligibility for coverage.

Liability risks are another major factor to consider. If a guest gets injured on your property, you could face a lawsuit or be responsible for their medical expenses. Airbnb’s Host Protection Insurance offers some liability coverage, but it’s critical to compare it with your homeowners policy. Without the right coverage, legal costs and liability claims can quickly escalate. Speaking with your insurance provider can help you identify coverage gaps and explore necessary endorsements or supplemental policies to reduce financial risk.

How to Ensure Proper Coverage

To stay protected while hosting on Airbnb, start by thoroughly reviewing your homeowners insurance policy. Contact your insurer and ask how short-term rentals impact your coverage. Some companies offer specialized endorsements or short-term rental policies that provide additional protection for hosts. It’s also essential to check whether your liability coverage extends to Airbnb guests in case of injuries or property damage.

Beyond your homeowners insurance, carefully review Airbnb’s Host Guarantee and Host Protection Insurance. Understanding their limitations will help you determine whether additional coverage is necessary. If your current policy doesn’t provide enough protection, consider increasing your liability limits or investing in a dedicated short-term rental insurance policy. Keeping detailed records of communications with your insurer and Airbnb, along with any rental agreements or guest interactions, can also help streamline claims and disputes. By taking these proactive steps, you can safeguard your home, finances, and peace of mind.

Steps to Verify Your Insurance Policy

Verifying your homeowners insurance policy is crucial when using your home as a short-term rental. Start by gathering key documents, such as your policy declarations page, which outlines your coverage details. Carefully review the terms, limits, and exclusions to ensure you understand what is and isn’t covered. If anything seems unclear, reach out to your insurance provider for clarification.

Next, confirm that your policy is up to date and reflects any recent changes to your home, such as renovations or updates to its value. If you’ve made modifications or started using your property differently (like hosting on Airbnb), your policy may need adjustments to maintain adequate protection. It’s also a good practice to keep written records of all conversations with your insurer, especially regarding any changes related to short-term rentals. These records can be invaluable if disputes arise.

Understanding how your homeowners insurance works with Airbnb hosting ensures you’re adequately protected. Standard policies often exclude short-term rentals, but options exist to close coverage gaps. Whether you adjust your current policy, purchase an endorsement, or invest in a dedicated short-term rental policy, taking the time to secure the right coverage will give you peace of mind.

Clear communication with your insurance provider is essential to avoid misunderstandings and unexpected out-of-pocket costs. By staying informed and proactive, you can confidently enjoy the benefits of Airbnb hosting while protecting your home, finances, and future.

FAQ:Homeowners Insurance & Airbnb Rentals

Does standard homeowners insurance cover short-term rentals like Airbnb?

No, most standard homeowners insurance policies do not cover short-term rentals. These policies typically protect personal property and liability for owner-occupied homes but exclude business activities like renting on Airbnb. If you’re hosting, you may need a short-term rental endorsement or a specialized Airbnb-specific insurance policy to ensure coverage for property damage, liability claims, and loss of income.

Are there specific insurance policies designed for Airbnb hosts?

Yes, many insurers offer short-term rental insurance tailored for Airbnb hosts. These policies fill coverage gaps in standard homeowners insurance by protecting against guest-related incidents, property damage, and liability claims. Some even cover loss of rental income and legal expenses. If you regularly host, consider switching to a policy designed specifically for short-term rentals.

Does Airbnb provide insurance or protection for hosts?

Yes, Airbnb offers two primary protection programs:
• Host Guarantee: Covers property damage caused by guests (with limitations).
• Host Protection Insurance: Provides liability coverage up to $1 million per incident for guest injuries or property damage.

However, these programs aren’t a substitute for proper insurance. They may exclude certain claims, so relying solely on Airbnb’s protection could leave you exposed. Always verify what’s covered and supplement it with your own insurance policy.

How can I determine if my current homeowners insurance provider offers additional coverage or endorsements for short-term rentals?

Contact your insurance provider directly to inquire about additional coverage or endorsements for short-term rentals. Review your policy documents for any references to short-term rental coverage. Visit the provider’s website for information on available endorsements. Consider consulting with your insurance agent to discuss your needs and any potential options. Additionally, assess if your provider partners with platforms like Airbnb or Vrbo, as they sometimes offer specific coverage options for hosts. If your current provider doesn’t offer suitable options, consider shopping around for another insurer that caters to short-term rental properties.

How can I find out if my insurance provider offers short-term rental coverage?

To check if your insurer covers short-term rentals:
Review your policy documents for mentions of home-sharing or short-term rental exclusions.

Call your agent to ask about available endorsements.
Visit and call Insurit Agency to explore policy upgrades to protect your Short term rental.

If your current provider doesn’t offer suitable coverage, consider switching to an agency that specializes in short-term rental insurance, like Insurit Agency.