Airbnb Insurance Cost: How Much Is Vacation Rental Insurance?

Airbnb owners must be prepared for things to go wrong. Guests are messy. Some don’t pay for damages that they caused. Other incidents can also happen, leading to costly losses for hosts. So having host insurance from Airbnb is essential.  

The best way to purchase Airbnb insurance is through a broker. It makes getting approved in any location easier and results in lower rates. Get an instant quote from Obie, the top rated insurance solution for short-term rental hosts.

What Host Insurance From Airbnb Is

Airbnb offers hosts an insurance policy called host liability insurance. It is a policy that covers hosts from third-party claims that a guest or their invitee was injured or incurred property damage resulting from the stay at your property. All hosts automatically get this protection which is set for $1 million in liability coverage. 

What Host Insurance From Airbnb Covers

Host insurance from Airbnb offers $1 million in liability coverage for hosts renting out their property to guests. Coverage is protection from third-party liability claims. 

Airbnb host liability insurance covers the following:

• Bodily injured to guests or invitees to the property
• Damage to property belonging to a guest or their invitees
• Theft of guests' property
• Damage caused by a guest to common areas of the property

Also, hosts can get host damage protection from Airbnb, which provides $3 million in coverage should the host's structure or personal property get damaged due to the guests' actions during their Airbnb stay. Host damage protection also covers lost rents if a host must cancel future guests to fix the damaged property.  

How Much Host Insurance From Airbnb Costs

Host insurance and host damage protection are free to all Airbnb hosts. If a host wants added protection from a third-party insurance carrier, that will be an added expense. Landlord insurance costs are contingent on the size, age, and style of the home, its location, and claims history. 

How Host Insurance From Airbnb Works

Host liability insurance from Airbnb works the same way other liability insurance policies work. If there is a loss, the host will complete a liability insurance intake form. The form will notate the reservation code and take down the details of the incident. Keep in mind that the form can be completed by a host or a guest. The claim is filed with Airbnb’s third-party insurance carrier, which assigns a claims representative to the claim for processing. Claims get resolved on an individual basis contingent on the terms of the insurance policy. 

What Hosts With Insurance From Airbnb Are Liable For

Host liability insurance doesn’t cover all third-party claims. It doesn’t cover damage or injury resulting from an intentional act. So, if the guest decided to slide down the stairs banister and fell, this would not be covered. Host liability insurance also doesn’t cover the damage done to the property though host damage protection does. Hosts should read through the policy to see what other exclusions apply.

Airbnb Host Insurance Alternatives

It’s widely known that Airbnb host liability insurance has gaps that leave hosts on the hook for losses. This is why many hosts also purchase a third-party short-term landlord insurance policy that protects the structure and provides liability protection. 

Some suitable alternatives to Airbnb host liability insurance are:

• Obie: This is an investment property brokerage specializing in landlord insurance. They take your information and shop for the best-priced policy for the coverage requested. 
• State Farm: State Farm has more than 19,000 independent agents in communities nationwide. Agents work with landlords to ensure that the right coverage is purchased for the risks associated with their short-term rental. 
• Allstate: This is a good alternative for hosts looking to rent out a room in their personal residence. Allstate's endorsement protects the residence from business pursuits associated with Airbnb rentals. 
• Nationwide: Airbnb hosts seeking to keep all their insurance in one place and who are seeking bundling discounts are served well by Nationwide. Nationwide has a full array of personal and commercial insurance lines and will help hosts get the right policy to fill the gaps that host liability insurance from Airbnb leaves. 

Takeaway

Host liability insurance is a free liability insurance policy provided to hosts from Airbnb. It gives $1 million in third-party liability protection, but it has some gaps. This is why an additional landlord policy from a company like Obie makes a lot of sense.  

The best way to purchase Airbnb insurance is through a broker. It makes getting approved in any location easier and results in lower rates. Get an instant quote from Obie, the top rated insurance solution for short-term rental hosts.