Best Property Insurance for Airbnb Host
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There is a type of rental property insurance called Airbnb rental insurance that is designed to meet the needs of people who rent out their homes for short periods. The success of an Airbnb business depends on the knowledge and understanding of the host regarding property, contents, and business income insurance.

Insurance for Airbnb

As part of their service agreement, Airbnb hosts can purchase insurance to safeguard their finances. Airbnb’s “short-term rental insurance” differs from homeowners, landlords, and renters insurance. It is distinct from both the travel insurance that tourists and Airbnb guests typically buy and the business insurance that most entrepreneurs invest in. 

The goal of Airbnb home insurance is to protect hosts from lawsuits brought by hurt guests or other parties. Additionally, it protects the host’s possessions in the event of harm from the visitor, a natural disaster, or armed conflict. Airbnb hosts can choose from a variety of different insurance policies. Municipalities and states have different regulations. 

In addition, each provider has a slightly different policy that, in most cases, the customer can customize by choosing options from a menu. It is important to think about the local legal regulations, climate, and politics and society when selecting a company and policy. 

Hosts can purchase AirCover, which protects against property damage and liability up to $3 million and $1 million, respectively.

How does Airbnb Insurance Work?

There are numerous companies that offer Airbnb insurance, each of which has its own set of policies and procedures. The limits of both liability and property damage protection may differ greatly from policy to policy, as may the coverages included and excluded.

But their operation is essentially identical. Location, property, and insurance all factor into the annual premium that hosts must pay.

In the event of an accident, the policyholder must submit a settlement claim. Typically, this is done online or through the insurance provider’s website, making it possible to do so from anywhere and at any time. It is best to move quickly because some insurance companies have strict 24-hour filing deadlines for claims.

The company will require explanations and supporting paperwork before agreeing to cover any costs. The time it takes to process a claim can vary anywhere from a few hours to a few weeks. 

How much does Airbnb Insurance Cost?

The cost of insurance for Airbnb properties can vary significantly from one another. It is dependent on a variety of factors, some of which include, but are not limited to, the company, the market, the property itself, and the required policy coverage.

Insurance for Airbnb Host

Your Airbnb host insurance policy should protect you in the event of damage to your property or injury to your guests or other parties. Successful Airbnb businesses depend on the efforts of hosts to provide memorable stays for their guests.

Open peril insurance, also known as “all-risk,” is the best type of insurance to have on a building. In other words, unless otherwise specified, all perils, including fire, wind, hail, and so on, are included. If you are an Airbnb host, you should get open-peril building insurance.

Airbnb hosts need contents insurance to protect their personal belongings, like furniture, decorations, dishes, linens, electronics, and more, from damage caused by fire, theft, and other covered perils.

When an Airbnb rental property is unable to accept guests as a result of an insured peril, like a broken water pipe, the policy’s business income coverage kicks in to make up the difference. Common causes of insurance claims for Airbnb rentals are water damage and subsequent cancellation of reservations, sometimes months in advance.

If an Airbnb host is found legally responsible for ‘bodily injury’ or property damage, liability insurance will cover those costs. Hosts must have sufficient coverage with high occurrence limits because slip and fall claims are the most common type of liability insurance claim. To be on the safe side, you should set aside at least $1,000,000 per incident.

What Does Airbnb Insurance Cover?

An Airbnb property’s insurance may cover a variety of events and situations, such as:

  • Medical costs resulting from a visitor injury
  • Theft or destruction of guest belongings
  • Guests causing property and furniture damage or stealing
  • Damage to the host’s personal property
  • Natural disasters or wars damaging property, contents, and external structures
  • Theft or damage to recreational vehicles or other items, such as boats (for lake houses)
  • Loss of rental income

Additionally, you may want to look into Airbnb’s insurance program, AirCover for Hosts. There is both property and liability insurance included in Airbnb’s hosting package. Additionally, Airbnb hosts who offer “Experiences” to their guests are covered by experience liability insurance. Hosts, co-hosts, and cleaning staff are all protected from potential financial loss with this no-cost insurance.

What does Airbnb insurance not Cover?

Even though Airbnb host insurance can be quite thorough, there are still some things that are not covered.

  • Normal wear and tear
  • Weather damage
  • Luxury items 

AirCover Insurance

Without additional coverage, all hosts are automatically included in AirCover. Additionally, through the app, Airbnb offers a 24-hour safety line. Hosts will have access to 24-hour, highly-trained security guards at their disposal should they ever feel threatened. AirCover consists of the following:

  • Host Damage Protection
  • Host Liability Insurance
  • To further protect Airbnb Experience hosts, AirCover also provides liability coverage.

#1. Host Damage Protection

The Host Damage Protection feature of AirCover for Hosts covers you up to $3 million in case a guest damages your home or possessions while they are staying with you through Airbnb. If a guest fails to make payment for any damage they cause to your house or possessions, you will be reimbursed. 

Airbnb AirCover, which provides $3,000,000 in host damage protection, is in addition to the host’s existing home insurance policy. This coverage is optional and is only valid for reservations made through the Airbnb website. AirCover for Hosts provides comprehensive safety for hosts. In addition to a 24-hour safety line and damage protection for up to $3 million, hosts also get $1 million in liability insurance and $1 million in insurance for experiences. 

What does Host Damage Protection Cover?

Host damage insurance protects you against:

  • Damage brought on by visitors (or their invitees) to your house, furniture, valuables, or possessions
  • Automobiles, boats, or other parked vehicles damaged by guests (or their guests)
  • Unexpected or additional cleaning expenses required as a result of a guest’s (or their invitees’) actions while staying on Airbnb, such as expert carpet cleaning
  • Income lost if you have to revoke confirmed Airbnb bookings due to damage caused by a guest or their invited guests

What does Host Damage Protection not Cover?

  • Typical wear and tear damage
  • Exchange rate loss
  • Loss brought on by natural disasters (such as hurricanes and earthquakes)
  • Injuries or property damage to visitors or other parties (which the host liability insurance may cover)

#2. Airbnb Host Liability Insurance

Instead of host protection insurance, Airbnb now offers host liability insurance to its hosts. It protects both the Airbnb host and any helpers, such as housekeepers and roommates, from legal action should an accident or theft occur during a guest’s stay. The insurance program covers up to $1,000,000 in liability. Because it is primary liability insurance, it usually kicks in first, even if the host has other insurance.

The Airbnb Host Liability Insurance policy protects hosts regardless of where their guests stay, be it a private home, a mobile home, a bus, an airstream, a boat, a treehouse, or a yurt. 

What does Airbnb Host Liability Insurance Cover?

Airbnb Host Liability Insurance protects hosts and their helping hands, such as co-hosts and cleaners, from legal action in the following situations:

  • Guest(s) bodily injury (or others’)
  • Guest (or third-party) property damage
  • Theft of a guest’s (or other people’s) belongings
  • Damage by guests to lobbies and neighboring properties

Airbnb Host Liability Insurance Exclusions

Essentially, Airbnb host liability insurance excludes:

  • Guest and third-party bodily injury that is not accidental
  • Guest or third-party property damage not caused by an accident
  • Damage to the host’s property by guests
  • Loss or expense due to an insured party’s violence, directly or indirectly.
  • Physical harm, property damage, or other loss caused by communicable disease transmission
  • Cross-suits—claims by one insured party against another

Best Insurance for Airbnb Hosts

Some of the best insurance options for Airbnb hosts are American Family Short-Term Renters Insurance and American Modern Vacation Home Insurance. Others include: 

#1. Proper Insurance’s Airbnb Insurance for Hosts

With policies written in each of the 50 states, Proper Insurance offers complete coverage for vacation rental homes. With backing from Vrbo, Lloyd’s of London underwrites it. Proper insurance coverage for short-term rentals typically costs between $1,500 and $3,500. The intricacies of your property and hosting enterprise, including the property’s location and worth, the number of visitors you welcome, and the quantity of rental revenue you wish to have insured, could affect this price. 

Proper insurance covers sinkhole collapses. Sinkhole collapse is damage that happens when the ground suddenly falls away due to erosion below the surface. If you have the right kind of insurance, you will not have to worry about replacing your rent checks for as long as it takes to fix up or rebuild your rental property.

Policies from businesses like Proper Insurance cover the cost of bringing your home up to code or rebuilding it according to local ordinances. Get the coverage you need for your vacation rental property by requesting a quote from Proper Insurance through their website or by calling them. 

#2. Allstate HostAdvantage

HostAdvantage Home-Sharing Insurance is unique protection for your belongings when you rent out your home through the company. Theft by tenants or burglary while you are away would both be covered, for instance. You would be protected up to a maximum of $10,000 if a tenant accidentally damaged your furniture or television. This safeguards your home and possessions from outside threats like theft and fire. However, since insurance policies vary by provider, it is best to check with your agent before signing any contracts. 

Despite its widespread agent base and streamlined claims process, Allstate charges more than its competitors and offers policies for a shorter duration of time (six months). The company has an A+ rating from AM Best and an A- rating from S&P Global, and it sells insurance in all 50 states either directly to customers or through a live agent. When added to an existing auto policy, Allstate’s short-term rental endorsement can provide $10,000 in personal property protection for as little as $4 a month. It is advised to get in touch with Allstate or submit an online quote request to obtain a more precise estimation of the price of insurance for your particular requirements. 

How much medical or family liability coverage you want to provide for your guests can affect how much Allstate insurance costs for vacation rental homeowners. Each Allstate policy is unique and can be tailored to the policyholder’s needs, so the coverage and limits it provides will reflect those preferences. 

#3. CBIZ Vacation Rental Insurance

CBIZ is an insurance provider that caters to short-term rental properties. Their policy will pay to repair or replace your property if it is damaged or destroyed due to an insured event. Comprehensive liability protection is provided for amenities like pools and hot tubs, and loss of rental income due to a covered peril is included in the policy as well. CBIZ is popular among its users and is offered in all 50 states. The annual premium for $2,000,000 in combined commercial and individual liability coverage can be as low as $1,600 if purchased online or from a local agent.

It is crucial to remember that the real cost of insurance may differ depending on several variables, including the property’s location and value, the kind and extent of coverage required, and any potential discounts or special offers. It is advised to get in touch with CBIZ or submit an online quote request to obtain a more precise insurance quote tailored to your requirements.

What Insurance Does Airbnb Provide to Hosts?

Airbnb provides a service for hosts called AirCover for Hosts. This insurance package consists of two parts: damage coverage and liability coverage. AirCover for Hosts protects against the following, per Airbnb’s policy:

Coverage of up to $3,000,000 for accidental damage to the property, which includes protection for artwork and valuables, vehicles and boats, pets, lost income, and extensive cleaning.

Liability coverage of $1,000,000 is used to describe situations in which a guest is harmed or their property is lost or stolen. Property managers, cleaners, other assistants, and the host themselves are all covered by liability. 

Insurance for Airbnb Property

Wind, hail, fire, theft, vandalism, etc. are all covered by Airbnb property insurance. The most common causes of property insurance claims at Airbnb properties are the same as they are at conventional homes: Natural causes. Therefore, hosts must be familiar with the various property protections offered by an Airbnb insurance policy.

The property coverage form in each policy specifies the covered and noncovered items. Property insurance comes in three different flavors: basic, broad, and special form, also known as “all-risk.” Airbnb hosts should have both property insurance and liability insurance.

What Kind of Insurance Is Needed for Airbnb?

To legally rent out your home through Airbnb, Vrbo,, and similar platforms, you are required to obtain short-term rental insurance. The best insurance for Airbnb hosts is a package that protects both their guests and their belongings.

Does Homeowners Insurance Cover Airbnbs?

In general, insurance coverage for vacation rentals is not included in a standard homeowners policy. Your homeowner’s insurance may be able to cover Airbnb losses, depending on the insurer’s policies. If you want to use Airbnb as a regular source of income, however, you will probably need to invest in a separate insurance policy that covers short-term rentals. If you only rent out your home occasionally, say once a month, your homeowner’s insurance may extend coverage to Airbnb guests. However, you may require supplemental protections, such as a stand-alone policy or home-sharing endorsement. 

Do I Need Special Insurance to Airbnb My House?

Your Airbnb must have a suitable insurance policy because it can safeguard your financial interests, guarantee guest safety, and adhere to local laws. It is critical to do your homework and select the insurance that best suits your needs, taking into account the kind of property, the area, and the necessary amount of coverage. Extra insurance is necessary for hosts of short-term rentals, such as Airbnb, to completely safeguard you and your possessions. 

Is Insurance More Expensive for Airbnb?

You can write off the cost of short-term rental property insurance against your tax liability, even though it is more expensive than a standard homeowners insurance policy. Using a broker is the best option for acquiring Airbnb insurance. Insurance companies face increased risk when it comes to Airbnb rental properties.

Is Airbnb Insurance Good Enough?

No. To adequately safeguard you as the property owner against a catastrophic accident, Airbnb insurance alone is insufficient coverage. Although Airbnb provides its insurance, it advises hosts to obtain additional protection in the form of a commercial policy or endorsement.

Are Airbnb Hosts Liable for Injuries?

When a property owner neglects to take proper care of their property, they may be held legally responsible for any injuries an Airbnb guest sustains.


This insurance serves double duty as both property and liability protection. However, there are subtle differences in the policies offered by each company, so Airbnb hosts will need to do their homework before settling on a provider. A prospective policyholder should thoroughly read the policy to determine exactly what is and is not covered before selecting any Airbnb insurance provider. Asking a company representative to confirm that everything is clear is the best course of action if there is any uncertainty.

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