Why You Need More Insurance as an Airbnb Host

Airbnb has become a household name for those who travel and those who are looking to make extra money. As discussed in our Find a Side Hustle Community For You blog, Airbnb can be a great option to make a side income if you have an extra space or often travel yourself too – especially if you live in an area frequented by travellers and tourists. What people often don’t realize though is that they may need additional Airbnb host insurance to fully cover themselves and prevent their side hustle from turning into a side problem. If you often host your space or want to make Airbnbing a full-fledged side hustle, you should consider these tips: 

What You Need in Your Insurance as an Airbnb Host

Airbnb home insurance – what you need to know

Source: https://www.ratehub.ca/

Do I need home insurance for my Airbnb?

You may have home insurance but does it cover home-sharing services like Airbnb, Vacation rental by owner (VRBO), or HomeAway? By creating an income property, you’ve changed the terms of the contract with your home insurance provider. Speak to them about your plans, they may make a note of it on file, or they could tell you it voids your contract. A contract that has been voided means you have no coverage if you need it, even if it’s unrelated to Airbnb.

Before you rent, it’s essential to gather home insurance quotes from a few providers making sure they offer this protection. Airbnb covers everyone automatically, but there are limits to their coverage. If you need access to more money than Airbnb can provide, it’s nice to know you can turn to your provider for the excess.

Why do I need extra home insurance if Airbnb provides protection?

Airbnb provides two types of protection. All hosts receive automatic coverage after creating the listing.

Host Protection Insurance provides liability coverage to hosts from your guests. It covers up to $1 million in the event of third-party (your guests, your condo building, your neighbours) claim for personal injury or their property damage. This insurance acts as primary coverage. You would need to use your home insurance policy if you needed any additional coverage.

Host Guarantee protection offers up to $1 million of property damage protection. Host Guarantee protects hosts against damages, to their home or possessions, by a guest. While Airbnb contents insurance covers some items in your home, It does not include jewellery, rare art, or collectibles. It’s best to store valuable items elsewhere while your house is rented to avoid the risk.

$1 million seems like a lot of money but if someone falls off the second story balcony due to an unsecured railing and sues, is it enough to cover the medical bills? The Host protection insurance does not include the loss of earnings. If that person can’t return to work, you are personally responsible.

Airbnb states on their website that the Host Guarantee does not replace homeowners insurance. They advise you to speak to your insurance broker, understand the terms, and know what your coverage includes and doesn’t.  

At Foxquilt, you can join up with other side hustlers, travellers, condo owners and everything in between for group savings on your insurance. With over a hundred groups, you’ll be sure to find the one that matches your passion or hobby. When you join Foxquilt, you’re joining a community for better buying power on your insurance. We’ll work together to find an insurance solution for your specific needs – whether it’s owning a home business or needing additional Airbnb host insurance. 

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