Airbnb is a relatively new service that matches prospective travelers with potential accommodations in private residences. This can be an exciting chance for the host to meet new people and make money by renting space in his or her home, but it can also be risky. Insurance agents at American Tri-Star Insurance in San Diego advise any potential renter to review the following information before registering with Airbnb.
Airbnb and Homeowner’s Insurance
Hosts may wonder if their homeowner’s insurance policy will cover damages to their property or any unforeseen medical expenses for injured guests. Unfortunately, most standard homeowner’s insurance policies don’t cover liability for their patrons. This is because homeowner policies are meant to protect residences, not agencies, which means you may be crossing a contractual line when you turn your home into a business.
Your Policy Mileage May Vary
Some policies will cover claims for damages when a host’s total annual rental income falls below a specified amount. It’s imperative that every Airbnb host contacts their insurance agency and is forthright about their intentions to rent a portion of their home. This is the only way for renters to receive accurate information concerning their personal insurance coverage and to protect the interest of their residence and their clients.
Automatic Secondary Insurance
No matter which claims your insurance agency may or may not cover, Airbnb offers an automatic Host Protection Program of up to $1 million that can supplement an existing homeowner’s insurance policy. This coverage is secondary, however, meaning Airbnb hosts will still need to pursue claims through their own insurance agencies first.
If you’re not satisfied with your insurance coverage or have questions regarding San Diego homeowner’s insurance, contact your friendly insurance agents at American Tri-Star insurance Services at 619-272-2100. Our knowledgeable staff can provide easy and affordable solutions to all of your insurance needs. Call today!