How Does Airbnb and Short-Term Rental Liability Insurance Work?

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How Does Airbnb Liability Insurance Work?

Airbnb has made a statement in the hospitality world, but when it comes to your personal belongings, how does liability insurance work?

When people host in Airbnb one of their primary concerns is the safety of their belongings. Who’s to say that the ones staying won’t rob them of all their stuff overnight? And what about if they fall and injure themselves on your property? Well, unfortunately, your homeowners insurance policy will not cover you. Let’s dive a bit further into that and also ask questions you may have that surround Airbnb and liability insurance.

  1. Why doesn’t homeowners insurance cover short-term rental?
    Every home insurance policy carries a business exclusion policy. This is to say that any claim involving a business transaction is void under homeowners insurance. Airbnb is a business, so claims are denied.
  2. Does landlord insurance cover short-term rental? 
    No. The reason being that landlord insurance covers long-term rental, not short-term. Airbnb is considered to be a short-term rental business so, again, those claims will likely be denied.
  3. How does one insure for short-term business activity? 
    One buys a business insurance policy.
  4. If I have a business policy do I have to keep my homeowners insurance policy, too?
    The business policy is designed to fully replace the coverage you currently own. You can cancel your current policy without worry.

The right business insurance policy with Reata Insurance Group can help you get the coverage you need for your Airbnb. Contact us for the best rates and for all of your insurance needs.

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