Airbnb, the site that allows residents to open up their homes for rental to guests for short-term stays, has grown in popularity in recent years. Able to provide affordable options for travelers’ home away from home, many homeowners have listed their spaces on Airbnb as a way to bring in some extra cash. Whether it’s a vacation home that you rent out when you’re not there, or you travel frequently for work, renting out your home can be fun and lucrative. 

If you’re considering getting into the business yourself, make sure you add finding appropriate insurance to your list of to-dos. Contrary to what some people believe, your home-turned-rental property is not covered by standard homeowners insurance. Why? Because home-sharing is qualified as “business activity.” In essence, your home is functioning just like a hotel or other rental property. So to protect yourself and your home, you need the appropriate insurance. 

The truth is that few people understand the financial and legal risk of listing their home on a sharing site such as Airbnb. The thought of making some quick cash and the simplicity of listing their home on the site overshadows the legal business of the deal. 

And think Airbnb will cover claims against your home? Think again. While they do offer Host Protection Insurance, it is limited to incidents related to an Airbnb stay. For instance, if a guest falls down your stairs and breaks their leg, it provides liability coverage of up to $1,000,000. However, it would not cover issues of mold or storm damage to your home. 

With an increased number of states regulating rentals, most property owners are legally required to maintain business liability insurance if they rent out their home on a short-term basis. It is your responsibility to find a vacation rental insurance company that can help ensure you stay compliant with current laws and keep you protected from property damage or liability issues BEFORE you list your house for rental. 

But not all insurance providers offer the same protection, and sometimes your homeowner’s insurer could drop you if they find out you’re renting your property. Proper insurance protects your good life as both a rental manager and homeowner. Contact us so we can help make sure you’re covered on your next adventure.