Homeowners Insurance for Airbnb Hosts
Standard home insurance often won’t cover Airbnb guests, but here's how to stay protected.
- Most policies exclude short-term rental liability
- Airbnb’s Host Guarantee isn’t the same as insurance
- Specialized coverage may be needed to protect your property and income
Insurance for Airbnb or STR hosts
For homeowners considering renting their property as a short-term rental (STR) via a website like Airbnb or VRBO, you must know whether or not your homeowners insurance provides the proper coverage. STRs most often require additional endorsements or a new type of coverage altogether. Below, you’ll find out how a typical homeowners policy handles home sharing, as well as some short-term rental insurance options that can help ensure that you are properly covered.
Does homeowners insurance cover Airbnbs?
Homeowners insurance coverage was developed to offer protection in the event of perils (causes of loss) such as fire, lightning, and wind. Things quickly get murky when you operate a business from your home — and insurers typically consider home-sharing a business activity.
If you rent out your property regularly, a standard homeowners policy isn’t likely to provide adequate coverage. Home insurance policies often exclude liability coverage — including bodily injury and property damage — for any business activity run from the home. If you are relying solely on your homeowners policy for protection, you may be at risk of being underinsured.
Exception: Most homeowners insurance policies offer protection for the occasional rental, as long as you inform the company beforehand.
| Coverage type | What it covers | Standard homeowners insurance | Other homeshare-specific policies | Standard landlord policy | Airbnb Insurance |
|---|---|---|---|---|---|
| Loss of rent coverage | Reimburses hosts for loss of rental income due to guest behavior | No | ✓* | ✓* | ✓ |
| Liability | Guest injuries and damages to property belonging to guests | Maybe** | ✓ | ✓ | ✓ |
| Personal Property | Covers damage to property belonging to you such as furniture and electronics | Maybe** | ✓ | ✓ | ✓ |
| Dwelling coverage | Covers the building itself and any damage that may arise | Maybe** | ✓ | ✓ | ✓ |
*Coverage may be available, but might require additional add-ons.
**Claims accepted at the discretion of the carrier (most insurers won't cover claims resulting from commercial activity on your property under a standard home policy).
What are the risks of renting your property as an STR?
Opening your home to strangers comes with some risks. Should a guest damage your belongings or incur bodily injury while staying on your property, you could be exposed to risk if you don't carry the correct insurance. The table below highlights some of the biggest concerns STR owners have when it comes to liability for their property, and this is why having the right insurance coverage is imperative if you're going to run an Airbnb.
Guest property damage is one of the top concerns, as well as wear and tear to the home (which isn't typically covered by insurance).[1]
Source: The Zebra
Make an informed decision: compare insurance rates today.
Is there specific home-sharing insurance?
Yes. Home-sharing insurance is designed to protect your home when it’s used as a short-term rental (STR). Once you start renting on platforms like Airbnb or VRBO, your standard homeowners policy usually won’t apply—because renting is considered a business activity.
A typical homeowners policy may include liability and property protection, but it often leaves gaps once paying guests are involved. Some insurers do offer limited coverage for occasional rentals. But if you’re running a more consistent Airbnb business, you’ll usually need a home-sharing endorsement or a separate commercial insurance policy.
A short-term rental insurance endorsement—sometimes available through your current insurer—can fill those gaps. It often covers theft, vandalism, property damage, liability, and even damage to a guest’s belongings.
If short-term rentals are a major source of income, a landlord policy might make more sense. Landlord insurance typically covers the dwelling, other structures, personal property used for maintenance, lost rental income, and liability claims.
Does Home Insurance Cover Natural Disasters? | The Zebra
Your home insurance coverage after a natural disaster depends on your location. Most natural disasters, hurricanes, floods, and earthquakes are not covered by homeowners insurance.
Does Airbnb offer insurance?
Yes. Airbnb includes AirCover automatically for all hosts. It bundles Host Damage Protection, Host Liability Insurance, and (for those running activities) Experience Liability Insurance.
While it’s a nice safety net, AirCover isn’t a full substitute for dedicated short-term rental insurance. Many hosts still choose additional coverage for broader protection.
-
Free and automatic for all Airbnb hosts
-
Covers guest injuries and accidental property damage
-
Includes liability coverage for Airbnb Experiences
-
Limited scope compared to dedicated STR policies
-
May not cover infestations, mold, or lost income
-
Lower coverage limits than commercial policies
| Coverage Type | What’s Covered | What’s Not Covered | Limit |
|---|---|---|---|
| Host damage protection | • Guest-caused damage to home & belongings • Certain extra cleaning costs (stains, smoke odor) • Lost income from canceled bookings due to guest damage | • Normal wear & tear • Acts of nature (storms, earthquakes) • Damage outside a booked stay | Up to $3M |
| Host liability insurance | • Guest injuries • Damage/theft of guest property • Damage in shared/common areas | • Intentional injury or damage • Damage to your own property | Up to $1M |
| Experiences & Services liability insurance | • Legal responsibility for guest injury or property damage/theft during an Airbnb Experience or Service | • Intentional acts or exclusions listed in Airbnb’s terms | Up to $1M |
Takeaway: AirCover is a helpful extra protection, but it’s not a replacement for homeowners or dedicated short-term rental insurance. Airbnb occasionally changes requirements, coverage, and other details for hosts, so be sure to check their website for the most up-to-date information.[2]
- Damage from normal wear and tear
- Loss of currency
- Loss due to acts of nature (ex: earthquakes and hurricanes)
- Injury or property damage to guests or others (those may be covered by Host liability insurance)[3]
- Cleaning associated with normal check-out tasks (ex: laundry, dishes, or trash removal)
- Other limitations apply
Insurance from indpendent STR insurers
Different platforms handle host coverage in different ways:
- VRBO: Recommends a vacation rental policy, designed for homes that switch between rentals, owner-occupied, and vacant. Coverage is offered through Proper Insurance.[4]
- HomeAway: Provides up to $1 million in liability coverage.[5]
- Surely: $1 million policy, covering pet damage, intentional acts, and more.[6]
💡 Tip: Always check what your platform covers and how it works with your homeowners insurance. That way, you can spot gaps and avoid surprises.
Does renters insurance cover short-term renting?
Rental arbitrage occurs when you lease a property for a long term and then rent it out on a short-term basis through platforms like Airbnb. While it can be profitable, it comes with risks—especially around insurance.
The first step is landlord approval. Many leases prohibit subletting or short-term rentals, and renting without permission could lead to eviction or denied claims if something goes wrong.
If your landlord allows it, review your renters insurance policy carefully. Some insurers:
- Limit how long you can rent out your space
- Restrict how much rental income you can earn
- Exclude short-term rentals altogether
As with homeowners insurance, the safest move is to talk directly with your insurer to confirm what’s covered and where gaps may exist.
Landlord and Rental Property Insurance | The Zebra
Learn the basics of landlord and rental property insurance to make sure your investment is protected and you fully understand your policy before it's on the rental market.
The best insurance companies for Airbnb and STR hosts
Not all homeowners insurers cover short-term rentals. Some see them as too risky, while others have created specialized policies to meet host needs. A few standout options include:
-
Allstate HostAdvantage: Covers theft and damage to personal property, up to $10,000 per rental period.[7]
-
Erie Homeshare: Protects against property damage, theft, and liability claims, but only for your primary residence.[8]
-
Proper Insurance: Considered one of the most comprehensive STR policies. Written as a business policy, it can replace your existing homeowners insurance by combining elements of commercial, landlord, and unoccupied property coverage.[9]
💡 Tip: Coverage and availability vary by state, so it’s smart to compare multiple options and check how each policy aligns with platform protections, such as AirCover. New companies are entering the STR insurance market, so what may have been the best coverage a few years ago may have changed.[10]
Airbnb’s protections focus on hosts, not guests. If you’re hurt or your stuff is damaged, claims usually go through the host, which can be tricky.
For your own peace of mind, check your homeowners or renters insurance. Most policies cover your belongings even when you’re away from home (though limits and deductibles apply). For extra protection (especially when it comes to trip cancellations), travel insurance is worth considering.
Our experts are here to help.
Airbnb laws by city
Short-term rental rules vary widely; some cities take a light-touch approach, while others enforce strict regulations that hosts must follow closely. The section below highlights a few examples from major cities to give you a sense of how different the requirements can be.
| City | Requirement | Rental Cap |
|---|---|---|
| Los Angeles | Register with the city; extended-stay registration needed beyond 120 days | 120 days/year unless extended |
| New York City | Must comply with strict zoning and city rules (varies by property) | Varies; heavily restricted |
| San Francisco | Register with city; certificate from Office of Short-Term Rentals; must live in property 275+ days/year | 90 days/year for unhosted stays; hosted must meet residency requirement |
| Denver | Business license required (Short-Term Rental license for <30 days; Lodging Facility license for larger spaces) | Depends on license type |
| Portland | Safety inspection, permit fee, HOA/rental compliance, limit on rental months | Limited number of months/year |
| Washington, D.C. | License required; if host present = unlimited stays; if not present = capped | 90 days/year if host not present |
If you have questions about meeting the regulations for your rental, contact your city or local regulatory agency for clarification. Check with individual city government websites for the most up-to-date regulations. [11]
Airbnb insurance FAQs:
2024 Vacation Rental Stats Roundup. Rent Responsibly
Getting protected through AirCover for Hosts. Airbnb
Host liability insurance. Airbnb
Vacation rental insurance policy information. VRBO
HomeAway Policies. Guesty
Get short-term rental protection from Safely. Safely
Homeshare insurance with Allstate HostAdvantage. Allstate
Home Sharing Insurance Coverage. Erie
Short-term rental insurance designed for owners and hosts. Proper Insurance
Short-Term Rental Insurance Guide for Hosts. AirDNA
Airbnb regulations by state for homeowners and investors. TouchStay
Related content
- Does Home Insurance Cover Termites?
- Homeowners Equipment Breakdown Coverage
- Does Homeowners Insurance Cover Storage Units?
- Does Homeowners Insurance Cover Asbestos Removal?
- Does Homeowners Insurance Cover Plumbing and Pipe Leaks?
- What is Personal Liability Insurance Coverage?
- Home Insurance Deductibles
- Additional Living Expenses Coverage
- Homeowners Insurance and Tornado Damage
- Does Homeowners Insurance Cover Roof Leaks?
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.