Introduction: Protecting Your Airbnb Rental with the Right Insurance
If you’re renting out a property on Airbnb, Vrbo, or other short-term rental platforms, standard homeowners insurance may not be enough to protect you from liability, property damage, or guest-related issues.
Many insurance policies exclude short-term rentals, leaving Airbnb hosts financially vulnerable in case of accidents, property damage, or lawsuits. That’s why having the right insurance coverage is essential for protecting your investment, income, and legal liability.
In this guide, we’ll break down the types of insurance you need for Airbnb rentals, what Airbnb’s Host Guarantee does (and doesn’t) cover, and how to find the best policy for your rental property.
1. Does Homeowners Insurance Cover Airbnb Rentals?
🚨 NO! Standard homeowners insurance does NOT cover short-term rentals.
Most homeowners and landlord insurance policies exclude commercial use, meaning:
❌ Property damage caused by guests may not be covered.
❌ Liability coverage could be denied if a guest gets injured.
❌ Loss of rental income is not included in standard home insurance.
💡 Tip: If you regularly rent your home on Airbnb, you need specialized short-term rental insurance to stay fully protected.
2. What Is Airbnb’s Host Guarantee & Is It Enough?
Many hosts believe Airbnb’s Host Guarantee provides full coverage, but it has major limitations.
✅ What Airbnb’s Host Guarantee Covers:
✔ Up to $3 million in property damage protection.
✔ Some coverage for guest injuries.
✔ Protection from certain guest-related damages.
🚫 What Airbnb’s Host Guarantee Does NOT Cover:
❌ Theft, cash, and valuables.
❌ Intentional property damage or normal wear and tear.
❌ Liability beyond $3 million.
❌ Loss of rental income if a booking is canceled.
❌ Damage to shared spaces (like condos or apartment buildings).
💡 Tip: The Host Guarantee isn’t a replacement for real insurance—it’s a backup, not a primary policy.
3. Essential Insurance Coverages for Airbnb Hosts
To fully protect your Airbnb rental, consider specialized short-term rental insurance, which includes:
✅ 1. Short-Term Rental Insurance (Best Coverage for Airbnb Hosts)
- Covers property damage, theft, and liability for guest injuries.
- Protects against loss of rental income if your property is unlivable.
- Required by some mortgage lenders and landlords.
- Typically costs $1,500–$3,000 per year, depending on location and coverage.
✅ 2. Landlord Insurance (For Long-Term Airbnb Rentals)
- Ideal for hosts who rent for 30+ days at a time.
- Covers property damage, liability, and tenant-related risks.
- Usually does NOT cover short-term vacation rentals.
✅ 3. Commercial Liability Insurance (Extra Protection for Hosts)
- Covers lawsuits, injuries, and guest-related claims beyond Airbnb’s Host Guarantee.
- Essential if you rent out multiple properties or have a high volume of guests.
✅ 4. Loss of Rental Income Coverage (Protects Your Airbnb Earnings)
- Reimburses lost income if your rental is damaged and cannot be rented.
- Covers fires, storms, vandalism, and other covered events.
💡 Tip: Some companies, like Proper Insurance, CBIZ, and Foremost Insurance, offer specialized Airbnb insurance tailored to short-term rentals.
4. What Airbnb Insurance Covers vs. What You Need
| Coverage Type | Airbnb’s Host Guarantee | Short-Term Rental Insurance |
|---|---|---|
| Property Damage | ✅ Limited | ✅ Comprehensive |
| Theft & Vandalism | ❌ No | ✅ Yes |
| Liability Coverage | ✅ Up to $3M | ✅ Higher limits available |
| Loss of Rental Income | ❌ No | ✅ Yes |
| Guest Injuries (Slips, Falls, etc.) | ✅ Limited | ✅ Full Coverage |
| Flood, Fire, or Natural Disasters | ❌ No | ✅ Yes |
💡 Tip: If you rely on Airbnb income, short-term rental insurance is the best way to protect your business and property.
5. How Much Does Airbnb Insurance Cost?
The cost of short-term rental insurance varies based on:
✔ Location – High-risk areas (coastal cities, flood zones) cost more.
✔ Property Type – Houses usually cost more to insure than condos.
✔ Coverage Amount – Higher limits mean higher premiums.
✔ Guest Volume – More frequent rentals = higher risks = higher premiums.
Estimated Airbnb Insurance Costs:
- Short-term rental insurance: $1,500–$3,000 per year.
- Landlord insurance: $800–$2,500 per year (long-term rentals).
- Commercial liability insurance: $500–$1,500 per year.
💡 Tip: Compare quotes from at least three insurance providers to get the best deal.
6. How to Get the Right Airbnb Insurance Policy
✔ Step 1: Contact Your Current Home Insurance Provider
- Ask if Airbnb rentals are covered (most will say NO).
✔ Step 2: Get Quotes from Specialized Short-Term Rental Insurers
- Look for providers like Proper Insurance, CBIZ, or Foremost Insurance.
✔ Step 3: Choose a Policy That Includes:
✅ Property damage protection.
✅ Liability coverage for guest injuries.
✅ Theft & vandalism coverage.
✅ Loss of rental income protection.
✔ Step 4: Review Airbnb’s Host Protection Plan
- Don’t rely solely on Airbnb’s Host Guarantee—it’s not enough.
✔ Step 5: Buy the Right Coverage & Keep Records
- Save copies of your insurance policy, Airbnb rental agreements, and any claims.
💡 Tip: Some homeowners hide Airbnb rentals from their insurance company—this is a huge mistake! If an insurer finds out, they can cancel your policy immediately.
7. What Happens If You Don’t Have Proper Airbnb Insurance?
🚨 1. Denied Insurance Claims
- If a guest damages your home, your regular home insurance may not cover it.
🚨 2. Lawsuits & Legal Liability
- If a guest gets injured and sues, you could be personally liable for medical costs.
🚨 3. Loss of Airbnb Income
- If your rental is damaged, you won’t be reimbursed for lost bookings.
🚨 4. Policy Cancellation
- If your home insurer finds out you rent on Airbnb without disclosure, they may cancel your policy.
💡 Tip: Don’t risk financial loss—get specialized Airbnb insurance to protect your rental business.
Get the Right Airbnb Insurance Today
If you rent out a property on Airbnb or Vrbo, having the right insurance is essential to protect your home, income, and liability.
✔ Homeowners insurance is NOT enough—most policies exclude short-term rentals.
✔ Airbnb’s Host Guarantee is limited—it doesn’t cover theft, liability beyond $3M, or loss of rental income.
✔ Specialized short-term rental insurance is the best solution for full protection.
📌 Need help finding the best Airbnb rental insurance? Contact First USA Insurance today for a free quote and expert advice!
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