Types of insurances for Airbnb hosts

How much are you familiar with different Types of Insurance for Airbnb Hosts? Don’t worry if you’re not, cause you’re about to be!

Like any landlord, Airbnb hosts take on some risk when they open their doors to guests. Although Airbnb offers specific protection for its host community, they’re not designed to protect hosts from all possible dangers. In addition, most hosts have no idea that standard homeowners’ insurance coverage will not save them in the case of a claim; if you don’t know much about insurance options either, you’ve come to the right place! We were going to talk more about different types of insurance for Airbnb hosts and the advantages and disadvantages of each of them. So, stay tuned till the end.


Late in 2021, Airbnb introduced a new service called AirCover. The former Airbnb protection plan, known as Host Guarantee, has been replaced by this new service. Both services protect hosts against damage caused by guests, but AirCover goes beyond by also providing an additional host liability program. The AirCover program doesn’t cost anything for Airbnb hosts.

AirCover was developed to cover expenses of repairments or extensive cleaning, which hosts have to pay for. Before introducing the AirCover program, the Host Guarantee program’s insurance only covered guest-caused property damage.

But what AirCover includes?

Both property and liability protection for the host is included in the AirCover program. The maximum payout under either of these policies is $1 million. Let’s have a look at both of these Airbnb coverages.

What does Airbnb host protection cover?

Airbnb host protection coverage includes Vandalism, Accidents, Broken plates, Smoke and fire, and Pet damage.

If a guest damages your property, Airbnb will pay up to $1 million to repair or replace it. This program isn’t like the host liability protection, but it’s similar to personal property coverage in a standard homeowner’s policy. Host protection covers the expense of any further cleaning required and any money lost due to cancellation.

Within 30 days after the incident, you must file your entire claim. The first step in collecting damage fees is to get in touch with the guest. If your guest refuses to pay for any damages, you have 14 days after the guest checks out to contact them and inform Airbnb. You must then provide evidence of the occurrence, such as proof of ownership, photographs, or a detailed description of the damage. You may only be eligible for compensation if you follow all of the steps in this timeframe.

If Airbnb approves your claim, you may be compensated for the item’s actual cash value, which is its market value, less any deductions for wear and tear. Guaranteed replacement cost coverage is not an available option, unlike standard insurance. If natural disasters damage your home or visitors accidentally hurt your pet, you will not be covered by Airbnb’s damage protection. Airbnb’s insurance does not cover damages caused by mold or mildew. Jewellery, paintings, and other valuables are not included in the policy’s coverage either.


Read another article by marveloushost: Is it Possible to Have a Successful Airbnb Business?


What does Airbnb’s liability insurance cover?

As an Airbnb host, you might always find yourself in the middle of some complicated situation, such as legal claims. Still, don’t worry; Airbnb’s host protection liability insurance has your back in the following cases:

  • In case a guest or another party files a claim against you
  • If one of your guests causes damage to another person’s property or accidentally hurts another person in the building’s lobby or corridor and the victim sues you

The common areas of your building, such as the lobby, are included in Airbnb’s liability coverage. This includes cars and RVs advertised as accommodation on the Airbnb website.

Airbnb liability insurance policies don’t include the following:

  • Acts of assault and battery
  • Mold or fungi
  • Underage or overage alcohol use
  • Sexual assault
  • Property damage

home insurance for airbnb host

Could AirCover be an Alternative to Insurance?

In order to use Airbnb’s insurance services, you must comply with all applicable laws and requirements set out by your landlord or condo association. Zoning regulations, business licenses, and additional property taxes may all be necessary for some areas. You may lose your eligibility for Airbnb’s insurance protections if you disregard these rules.

On the other hand, Airbnb stated, “Although AirCover can help keep you safe while hosting an Airbnb stay or Experience, it is not a replacement for personal insurance.” Okay, but which types of Insurance for Airbnb Hosts suit my property the most? You may ask. In the following paragraphs, we will learn more about differnet types of Insurance for Airbnb Hosts

and their advantages and disadvantages. So let’s dive in!

Homeowners Insurance and Airbnb

The fact is many hosts on Airbnb are renting out a second house that the previous homeowner insures. Homeowners insurance covers the damages caused by fire, lightning, and hail, while Airbnbs’ AirCover doesn’t! So, you can’t really count on Airbnbs’ AirCover in such cases.

But is homeowners’ insurance a good-to-go option for Airbnb hosts? Well, not really.

Since the standard homeowner’s policy doesn’t support any business activities on residential property and most Airbnb hosts don’t reside in their rental property, the insurance company can deny your claim and pay nothing. So don’t ever take the risk of keeping your Airbnb business under wrap!

If you also plan to live in the Airbnb rental property, your home insurance may extend to cover the rental. Your homeowners’ insurance company may provide a “unit or residence rented to others” endorsement if you live on the premises of a multi-family building. While adding an endorsement will increase your rate, it will likely be less expensive than adding a new insurance policy.

But here is an exception; If you also plan to live in the home, your homeowners’ insurance may extend to your Airbnb business. In case of owning a multi-family building in which you also live, your homeowners’ insurance may include a “unit or residence rented to others” endorsement. However, adding an endorsement will increase your rate, but it will still likely be less expensive than adding a brand-new insurance policy.

Landlord Insurance for airbnb


Read another article by marveloushost: Long-term renting VS Short-term renting on Airbnb


Landlord Insurance

Since landlord insurance covers both property and casualty insurance, it can protect you, your renters, and all the business staff members, such as your co-host or property manager. Landlord insurance protects the property against the same hazards as a standard homeowner’s policy and also protects the landlord from lawsuits filed by tenants.

What distinguishes landlord insurance from homeowners’ insurance is that landlord insurance offers rental income protection. If, for instance, your rental property becomes uninhabitable because of fire or flood, your insurance coverage should compensate for the financial loss. Unlike homeowners’ insurance, landlord insurance doesn’t cover personal properties such as furnishings, clothing, or artwork.

Landlord insurance might be one of the best types of Insurance for Airbnb hosts, but they need to speak with their insurance provider first and explain their business strategy to see whether landlord insurance fits them. That’s because only a few landlord insurance policies cover short-term rentals under thirty days. If you plan to rent your place for extended periods (more than a month), landlord insurance is the best choice. Some hosts share some parts of their property, such as a bedroom, bathrooms, or backyard, with Airbnb guests; in these cases, purchasing a home share insurance sounds reasonable.

Commercial Property Insurance

Airbnb hosts who intend to host short-term guests should seek commercial, home share, or vacation rental insurance. One of the most common types of insurance for Airbnb hosts is a commercial property policy, also known as a business property policy.  If you don’t live on the property and only intend to rent it out for short periods, commercial property insurance may be the best option. A commercial property insurance policy will cover any Damage to your property or guests and their belonging.

Umbrella Policies

The term “umbrella policy” is certainly something you’ve come across in your research for types of insurance for Airbnb hosts to protect your Airbnb. Umbrella insurance provides further protection beyond a standard homeowners or landlord policy. When damages go beyond the limits of your primary insurance policy, an umbrella policy will compensate for them.

If a guest is harmed on your property because of broken stairs or defective wiring, for instance, and decides to file a lawsuit against you, your homeowner’s or landlord’s insurance will initially pay the claim. An umbrella policy will pay for additional costs up to the policy’s maximum.

Landlords and investors who own more than one Airbnb property can benefit from a blanket umbrella policy because it simultaneously protects rental homes in multiple locations. Remember that a business or commercial umbrella policy is required if you run your Airbnb rentals using a commercial property license.


Read another article by marveloushost: Airbnb Cancellation Policy: All Hosts Need to Know


Renters Insurance

You may need clarification about how renters’ insurance affects you and your belongings. First, It’s not your responsibility to take care of your renters’ possessions as a landlord. Although Some of your stuff, such as an appliance, may be protected by a reputable landlord or commercial property policy in the event of damage, the renter’s belongings will not be.

If you’re already renting a house or apartment and plan to turn it into an Airbnb, you need to know the fact that your current landlord’s insurance policy probably won’t protect your prospective Airbnb renter. You should check the subletting and Airbnb policies in your lease. If your agreement forbids renting the property for commercial purposes, you cannot list it on Airbnb.

To find out if you have any restrictions on who is permitted to reside in your rental property and what those restrictions are, you should contact your insurance company.


As mentioned, Airbnb’s free insurance is not meant to replace personal insurance. As an Airbnb host, You shouldn’t try to hide in the shadows and hope nothing terrible happens to you. Airbnb guests are always causing at risk of injuries Because they are unfamiliar with your property. It could be something minor, like a fall down the stairs, or something major, like carbon monoxide poisoning. If a guest sustains bodily harm, it doesn’t matter how it happened; the possibility of a lawsuit is always high. Regarding all these risks and possibilities, which one do you choose? Relying on Airbnb free insurance or having solid coverage that you can count on it to respond and defend you?

Please share your related experiences and questions about types of insurance for Airbnb hosts with other readers and us in the comment section below.


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