Would you like your house to bring in a paycheck? It can when you rent it out with Airbnb. The company started in 2008 and now offers over 800,000 rental listings in your choice of 190 countries. Before you sign up to put your house to work, though, consider five home insurance questions that protect you and your home.
1. Do you have home insurance?
Airbnb does not specifically require participants to carry home insurance. However, they do provide a free Host Guarantee of $1 million in coverage for damaged property, excluding jewelry and collectibles. That figure isn’t much, though, when you consider that anything from a full-house demolition to a severe physical injury could occur while strangers rent your home. Make sure you have an insurance policy in place to protect you.
2. How often will you rent your home?
Many home insurance policies provide liability coverage for occasional rentals. Yours might not. Plus, that term “occasional rental” isn’t definitive. It could mean once a year or once a month. Verify your policy’s rental coverage and frequency.
3. Do you have enough liability and medical coverage?
While renters could damage your physical home, they could also fall down the steps and file a lawsuit or require extensive medical treatment. Update your home insurance to provide adequate worst-case-scenario liability and medical coverage.
4. Are your guests’ possessions covered?
After securing coverage for your home, consider your guests’ belongings. Make sure your home insurance policy covers their electronics, jewelry or other valuables that might be stolen, lost or damaged while they stay in your home.
5. Do you need a commercial or landlord policy?
If you rent via Airbnb often, you could technically be considered a hotel owner. In this case, you’ll need commercial insurance. Likewise, if you purchase a second home or rent your vacation home, you may need landlord insurance.
Renting your house through Airbnb puts your house to work for you. Consider these five questions before you sign on, though, to ensure you have the right home insurance coverage for your protection and peace of mind.
