Airbnb + Homeowners Insurance = What Exactly?
What does your homeowners insurance cover when Airbnb gets involved?
There was a time when Airbnb did not offer insurance should any guest turn out to be a bad person and ransack the home in which they are staying. After a story went viral about a woman’s apartment being trashed and vandalized, Airbnb decided to offer hosts a variety of options to reimburse them if this something malicious happened to their home. But is this insurance enough to cover the worst case scenarios?
Your homeowners insurance does not cover business—yes, insurance companies will count your Airbnb as a business transaction. Consider the following before you host through Airbnb:
- Insured: Those covered in your policy are: you, your relatives, and students under the age of 24 attending school full time who once lived there before moving out.
- Not insured: nonresident, nonrelative vacationing tenants.
- Insured location: The insured location where you reside in your house. Any part that is not used by you to reside is not insured.
- Business: Most policies define business as, “a trade, profession, or occupation engaged in either full-time or part-time for which the insured receives no more than $2,000 annually.” Depending on how successful your place is with Airbnb customers, you could technically be considered a business–which is not covered by your homeowners policy.
It is recommended that you purchase a business owners policy to best cover your house and your precious items. Airbnb should be a relaxing experience where you share interesting stories from all over the world! Getting the right insurance coverage shouldn’t be a task you have to worry about, so contact Little & Sons Insurance Services. Our dedicated team can help you get the right business insurance. We serve Banning, Beaumont, Calimesa, Redlands, and the surrounding California area and can help you protect yourself against the risks you face.