Running an AirBnB? Here’s why You Should Get Short Term Rental Insurance
The perfect change from our daily routine is to have a quick get away or vacation with family and friends to a beautiful location where you can relax and escape. AirBnB’s have taken over the place of hotels as they offer people beautiful scenic views and all the facilities which make them feel at home with their loved ones. With the development of AirBnB, you turn your home into a business property. It is important for you to protect your assets from losses that could easily reach tens of thousands of dollars.Short Term Rental Insurance covers risks that may not always be included in AirBnB coverages. Therefore, you are always concerned about the damage that can be caused to your property either by the guests or by any natural disasters or other perils.
Short Term Rental Insurance for a House, Condo, or Cottage
You may have home insurance, but does it cover home-sharing services like Airbnb, Vacation Rental by Owner (VRBO), or HomeAway? By turning your home into a business property, you have changed the terms of the contract. The short-term rental insurance or Airbnb insurance costs varies depending upon the rental features such as:
- Construction Type
- Age of the Building
- Specified Coverage
- Number of guests allowed at any one time
Considerations for Liability as an AirBnB Host
There are certain considerations which are a priority for the Host of an Airbnb. There are various liabilities which are important for the host to consider before renting out their Airbnb for the public use.
- Bodily Injury
- Damage to property belonging to guest.
- Property damage to neighbours
Doesn’t AirBnB Already Provide Coverage?
Airbnb provides two types of protection. These are the coverages which are provided to all the Airbnb hosts as soon as they create a listing.
- Host Protection Insurance
- Host Guarantee Protection
Host Protection Insurance refers to the coverage which aims to provide liability coverage to hosts from your guests. It covers up to $1 million in the event a third-party (your guests, your condo building, your neighbours) makes a claim for personal injury or property damage. This insurance acts as primary coverage.
Host Guarantee Protection offers up to $1 million of property damage protection. Host Guarantee protects hosts against damage to their home or possessions caused by a guest. While Airbnb contents insurance covers some items in your home, it does not include jewellery, rare art, or collectibles. It is best to store valuable items elsewhere while your house is rented to avoid the risk.
The Airbnb Host Guarantee is a good start when it comes to coverage but if you are serious about operating a successful short-term rental business, it is a good idea to invest in more coverage. Essentially, you need to take a three-pronged approach to Airbnb liability insurance:
- Set out clear information for guests in advance.
- Understand the Host Guarantee
- Invest in your own short-term renters’ liability insurance that covers anything that is not addressed by the first two items on this list.
In broad terms, AirBnB does offer coverage for property owners, although it is not enough to protect your property from all potential damages. By purchasing Short Term Rental Insurance alongside hosting your property, you are taking the extra steps to ensure that there are no gaps in your coverage.
ReFrame offers Short Term Rental Insurance with coverage terms with premiums as low as $600 annually, you can get an instant quote by applying today!