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Does Homeowner’s Insurance Cover Airbnb Properties?

The advent of Airbnb and similar services has introduced new difficulties into the insurance industry.  Standard homeowner’s insurance policies only protect properties being used as a primary residence.  A residence purchased for use solely as an Airbnb will require an insurance policy that accounts for the short-term and intermittent occupancy.

Airbnb provides Host Guarantee and Host Protection Insurance with every listing at no additional cost to hosts. Host Guarantee coverage will reimburse hosts up to $1 million for any damage caused to the property by a guest or any personal items stolen from the property. However, this coverage is limited and only reimburses hosts the actual cash value of the property and excludes valuable items such as jewelry, artwork, collectibles, or money.  The limited coverage provided by Airbnb may also create also additional issues since it may trigger the “Other Insurance” provision contained in another insurance policy held by the homeowner.

Ultimately, when dealing with claims involving an Airbnb, it is important for insurance companies to have a strong understanding the property’s occupancy, the type of insurance provided, and other insurance that may be available.

If you have any questions or would like additional information, please contact any member of HKR’s team.