Vacation Rental Owners

The Best Insurance for Airbnb Hosts (Top 10 Options)

The Best Insurance for Airbnb Hosts (Top 10 Options)

Choosing the best insurance for Airbnb hosts can be a challenge! With so many different types of policies out there, it can be difficult to figure out which is the best option. Many vacation rental owners aren’t sure whether their home insurance policies can also cover their short-term rentals, or if the insurance they need is something else altogether. Filing third-party claims can also seem overwhelming at first glance. This article answers many of the most common questions related to homeowner insurance, Airbnb, and short-term rental coverage. Plus, it offers ten great recommendations for hosts to get the protection they need.

Does Airbnb Provide Insurance or Protection for Hosts?

Airbnb does provide some host protection in the form of host liability insurance and host damage protection through AirCover.

With the host liability insurance, Airbnb offers up to one million dollars in coverage for the following situations:

  • The host is found legally responsible for a guest’s injury
  • The host is found legally responsible for damage that a guest caused to common areas, such as a lobby or nearby property
  • The host is found legally responsible for a guest’s property being damaged or stolen

There are also some situations that Airbnb’s host liability insurance does not cover:

  • Damage to a host’s property or belongings caused by a guest
  • Damage or injury caused intentionally

Meanwhile, Airbnb’s host damage protection also provides up to one million dollars in coverage. The Airbnb host protection comes into play if:

  • A guest causes damage to a host’s belongings or property
  • A guest’s behavior leads to unexpected cleaning costs
  • A host loses income due to the cancellation of Airbnb bookings as a result of property damage caused by a guest

Still, some situations aren’t covered by Airbnb’s host protection insurance, including the following:

Does Airbnb Provide Insurance or Protection for Hosts?
  • Wear and tear that results from reasonable and ordinary use
  • Loss caused by acts of nature, such as hurricanes and earthquakes
  • Guest injuries or damage to guests’ property

Although Airbnb does provide this coverage, it’s in hosts’ best interests to get additional coverage through a third party in order to have the best insurance for Airbnb hosts.

Does Standard Homeowners Insurance Cover Airbnb Properties?

While it depends on the specific policy, the majority of homeowners insurance companies exclude short-term rentals from their coverage. Some hosts may be able to extend their home insurance coverage to their vacation rental property, but this is pretty rare. This is because home-sharing is considered a business activity, which isn’t covered by homeowners insurance. The best homeowners insurance for Airbnb allows policyholders to extend their protection to cover their vacation rental properties as well as their homes.

Are Airbnb Properties Covered by Landlord Insurance or Renters Insurance?

Generally, landlord insurance policies only cover long-term rental properties, but not short-term rental properties, although there are exceptions. Meanwhile, guests should have short-term renters insurance, and hosts need short-term rental property insurance to get the coverage they need when renting out their homes on Airbnb.

What Is Home-Sharing Insurance?

Home-sharing insurance provides coverage to Airbnb and short-term rental hosts while guests are present. Depending on the particular insurance provider, home-sharing insurance may include various types of coverage. In general, home-sharing insurance includes liability as far as property damage and injury. Many home-sharing insurance policies also cover the host’s house and belongings. Since home-sharing insurance coverage can vary quite a bit, it’s very important for hosts to fully read and ensure they understand their policies.

Factors to Consider When Choosing Airbnb Insurance

Hosts should look for the following components in their policies to ensure that they’re fully covered by the best insurance for Airbnb hosts.

Loss of Income

Loss of Income

Many hosts fail to consider loss of income when selecting an insurance policy. However, it’s extremely important! Let’s say that a host is unable to rent out their Airbnb due to unforeseen events like nearby construction. With loss of income included in their insurance policy, the host won’t completely lose out on the money they could’ve made had they been able to rent out their property.

Property and Contents Insurance

An Airbnb host risks their property being damaged or stolen by guests, and situations like house fires can also damage their property and its contents. Therefore, property and contents insurance is crucial. The best short-term rental policies cover both repair and replacement of property and its contents in the case of theft or damage.

Liability Coverage

Liability coverage is a crucial part of a good home-sharing or short-term rental insurance policy. Hosts should look for a policy that has high coverage and few exclusions for guest injury, since guest safety is one of the largest risks associated with running an Airbnb.

Location-Specific Coverage

Location-specific coverage mainly refers to coverage for issues like earthquakes and floods. Some areas are much more prone to these types of events than others. Hosts who own vacation rental properties in areas that are prone to natural disasters need to find the best insurance for Airbnb hosts that provides additional location-specific coverage.

No Forced Entry Requirement for Damage or Theft

Oftentimes, insurance policies require proof of forced entry in order to cover damaged or stolen items. When renting properties on Airbnb, though, the forced entry requirement can limit hosts’ coverage quite a bit. It’s best for hosts to find a policy that doesn’t require proof of forced entry in order to cover damaged or stolen property.

Top 10 Best Insurance for Airbnb Hosts

The ten insurance providers listed below have proven track records working with short-term rental hosts.

1.   Proper Insurance

Proper Insurance

Proper Insurance is an excellent choice for vacation rental owners because it’s designed with them in mind. In fact, it’s the nation’s leading provider of short-term rental insurance and is exclusively endorsed by Vrbo. Proper Insurance’s policies are written as business policies that also cover personal liability.

2.   Allstate

Allstate offers multiple types of insurance, and one of them is its HostAdvantage Home-Sharing Insurance. It covers theft and damage and can be added to your current homeowners policy. Its overall goal is to “protect your place from the unexpected.”

3.   CBIZ

CBIZ allows you to protect your investment with insurance coverage developed just for short-term vacation rentals. Its policy includes coverage for property, including building and contents, liability, and loss of income. CBIZ is the United States’ largest insurer of short-term vacation rental properties.

4.   Nationwide

Although Nationwide doesn’t offer an insurance policy specifically for vacation rental owners, it does have many options to choose from that can provide the protection needed. Nationwide has homeowners insurance, condo/association insurance, personal liability insurance, and umbrella insurance. With so many options, it’s easy to see why Nationwide is one of the options for the best insurance for Airbnb hosts. 

5.   Farmers Insurance

Farmers Insurance has landlord and rental property insurance that can provide sufficient coverage to vacation rental owners. It also features add-ons that cover loss of rent, personal property damage and theft, personal injury, and other structures.

6.   American Modern

American Modern is another great choice for vacation rental owners because it offers two different options for rental property insurance. The first is comprehensive coverage, and the second is flexible coverage. There are also multiple optional coverage options so that vacation rental hosts can pick and choose the coverage they need.

7.   American Family Insurance

American Family Insurance offers temporary and short-term rental insurance for people who rent out their homes for 62 days or less per year. American Family Insurance recommends looking into their landlord insurance policies for hosts who rent out their properties long-term.

8.   Erie Insurance

Erie Insurance

Erie Insurance offers various types of coverage for rental property owners and landlords. Options include premises liability coverage, coverage for libel and slander, data breach liability coverage, property and income loss coverage, equipment breakdown coverage, coverage for damage to other property, workers’ compensation coverage, business auto coverage, and employment practices liability coverage.

9.   Safely Insurance

Safely Insurance has “vacation rental protection redefined” with “the right coverage only when you need it.” It includes comprehensive guest screening and covers up to one million dollars in coverage for the property, its contents, and bodily injury. It also boasts quick and easy claim payments, and hosts can have protection after just a ten-minute sign-up process. It’s clear why Safely Insurance made it into the list of the best insurance for Airbnb hosts!

10.   Progressive Insurance

Progressive Insurance is a final choice for vacation rental owners, and it offers insurance for vacation homes, vacant homes, and rentals. Progressive also has homeowners and landlord insurance to cover all the necessary bases.

FAQs (Frequently Asked Questions)

What is short-term rental insurance?

Put simply, short-term rental insurance provides coverage for liability exposure and property while hosts rent out their homes on Airbnb and other short-term rental listing sites.

Who needs short-term rental insurance?

Although Airbnb and some other vacation rental listing sites provide limited coverage, it’s best for hosts to find a comprehensive short-term rental insurance policy from a third-party provider as well.

List Your Vacation Rental Property on RentalTrader

Vacation rental property owners who want to increase their bookings and fill their calendars need to check out RentalTrader! Not only is it quick, easy, and 100% free to list your property, but the host fees are among the lowest in the industry at only 4.5% per booking. RentalTrader is ready to take back the vacation rental industry by making it more cost-effective for hosts and guests alike. Ready to join the revolution? List your vacation rental on RentalTrader today!

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