Types of Insurance for Airbnb Hosting
Landlords, property renters, and Airbnb hosts; do you know what types of insurance you need?
The possible liability involved with hosting guests using Airbnb has been known to scare some potential hosts away, but it’s really not that bad. And in a basic sense when it comes to sharing property, furniture, and appliances; this seems like a logical concern. But concern is only necessary when we aren’t prepared. With the right insurance policy absolutely any Airbnb host is financially safe from the burden of liability, along with their guests.
Hazard and Fire coverage
Every property should be covered by Hazard and Fire Insurance, Airbnb or not. Fire insurance will cover against any hostile fire, or a fire that moves out of it’s intended area (ie. stove or fireplace). Friendly fires are not covered, which are fires that are set and remain in their intended location.
Liability coverage
This is another type of Airbnb insurance that every host/property owner should consider. Liability Insurance will protect hosts from lawsuits or similar claims. This can come in handy if a gust injures themselves while staying at your Airbnb.
Sewer Backup coverage
For a minimal cost, many insurance companies will add sewer backup insurance to the hazard and fire insurance. What does it cover for us Airbnb hosts? Exactly what it sounds like, the instances where a sewer might backup.
Flood Insurance for Physical Property
Airbnb hosts who have property in a designated flood zone should seriously consider flood insurance converage. It’s available at a subsidized rate through the National Flood Insurance Program. This is especially important for those who might be in danger of a hurricane or heavy storm; because these events are not covered by any other kind of insurance policy.
Builders Risk Insurance
In the event of Airbnb renovation, builders risk insurance could be ideal. While we are renovating the property any property damage, contractor ‘slip and falls’, or vandalism will not be covered by our other insurance. This type of insurance is provided through a secondary insurance provider, like Lloyds of London. Again, it is really only applicable for Airbnb hosts that are going to renovate the space.
Workers Compensation Insurance
Any Airbnb host that hires a property manager, cleaning crew, or any other person to work on site would be wise to grab workers compensation insurance. This insurance will provide wage replacement and medical benefits to any employee who is injured at while work.
Umbrella Insurance Policy
This is never 100% necessary, but an umbrella policy is ideal Airbnb insurance for a host that is trying to offset absolutely any possible liability. It will protect a host from major claims and lawsuits.
Knowing all about insurance is the best way to be a prepared Airbnb host. Being covered can save us tons of money in the event of an accident or emergency, don’t get caught with out Airbnb insurance.
