I got some info back from my friend who is an insurance broker. If anyone has any more questions or needs more clarification, please be sure to let me know! Of course you will have to weigh whether the amount you make from Airbnb exceeds the extra cost of insurance. The safest bet is to talk to an insurance broker and get the right coverage in place if you do decide to go ahead with being an Airbnb host. Since this is a fairly new area, it is not very clear what Airbnb’s host guarantee is really meant to cover and what they will pay out if claims are submitted. There is no clear cut direction on this as Airbnb’s reps have said they will pay out before a host seeks compensation from their own home insurance policy but I would strongly recommend not relying on this. If you do not inform your insurer that you are renting your home on Airbnb, whether you live there at the same time or not, and something happens, your coverage can and most likely will be deemed void because this represents a “material change in risk”. This still does not guarantee that Airbnb will pay out as they adjust every claim individually. " In insurance talk, this means that Airbnb’s policy is excess coverage and you must first try and resolve the issue with the guest and then seek compensation from your home insurance policy and only if you’ve exhausted all property coverage from them, can you then submit a form to Airbnb requesting compensation. If you are unable to recover such Covered Losses or damages within a reasonable period, then you must seek recovery to which you may be entitled, from any person or entity other than the Responsible Guest or Airbnb, with respect to such Covered Losses. "You must use your best efforts to seek recovery from the Responsible Guest for any Covered Losses. Not all countries have the host guarantee in place - check Airbnb’s website to see if your country is eligible. They also exclude the following property:Ī police report is encouraged in all cases and is required for payment requests that exceed US$300. Airbnb WILL NOT cover you for any liability. This means you must get separate liability coverage to cover you in case a guest slips and falls and hurts themselves, your dog bites a guest, the guest burns their hand while cooking in your house, or any other accident or injury that befalls that guest while on your premises. The Airbnb host guarantee is PROPERTY DAMAGE COVERAGE ONLY, and does not cover liability. If you do not submit this form within the time period set out, Airbnb will not pay anything out. You MUST complete and file an Airbnb Host Guarantee Payment Request Form with Airbnb within the earlier of fourteen (14) days following the end of the guest’s booking OR the date of which the next booking for this same accommodation begins. With the Airbnb host guarantee, I would also be very leery about relying on it. The US may have more leniency due to more market competition. I’m speaking from a Canadian perspective. This will also depend on where you live and what the insurance market conditions and appetite is like there. If that is the case, the cost on an annual basis is likely going to be quite high, especially when compared to a residential policy. They will most likely advise you to seek commercial insurance instead. If you’re going to be renting your place on Airbnb for short term stays, most residential home insurers will not insure you for this because they consider that to be a substandard risk.
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