Get cheap Airbnb insurance quotes for free.

What is Airbnb insurance?

Airbnb insurance, also known as short-term rental or host insurance, is a collection of coverages meant to protect property owners who rent out their homes via the Airbnb home-sharing platform. This coverage also applies to platforms like Vrbo.

While your standard home insurance policy may not cover commercial activities, this type of insurance fills that gap, providing coverage for risks associated with renting to guests.

It’s worth noting that Airbnb offers free liability and damage protections under its free AirCover for Hosts coverage, meaning that as long as you use their platform, your property will be protected, to some extent. However, if you want full protection, the safer option is to purchase short-term rental or Airbnb insurance from a trusted provider.

Doing so will provide you with a greater variety of coverage options, in addition to letting you set higher coverage limits. It’s especially vital if you rent out your property regularly, since doing so increases the likelihood of injury, damage or theft.

What Airbnb insurance includes

Typical short-term rental or Airbnb insurance policy will at minimum include the following coverages:

• Commercial property: Commercial property coverage provides protection from damage to your building and its contents, such as electronics, furniture and appliances, caused by insured perils like fire, severe weather, vandalism or theft. This could include damage caused by your tenants. However, we recommend confirming this with your provider.
• Commercial general liability (CGL): General liability is meant to cover third-party damage or injury costs. For instance, if your tenant slips and breaks their leg on your floors or if they damage your furniture. Whether you need to pay for a legal dispute or property repairs, you’ll receive the necessary funding.

Recommended add-ons for Airbnb insurance coverage

For even greater security, consider enhancing your policy with these valuable add-ons:

• Business interruption: Also known as ‘rental income’ coverage, this reimburses you for lost rental income if your property becomes uninhabitable due to a covered claim, such as fire or vandalism, helping you maintain financial stability.
• Loss assessment: If you’re a condo owner, this coverage will protect you in case a customer makes a claim against the condo corporation that exceeds its insurance policy limit. Such claims are made for issues occurring outside your unit, usually within your condo building’s common areas, such as a fitness centre or swimming pool.
• Contingent unit: This coverage is good to have for any condo owner, regardless of whether you rent out your unit or not. It covers you in the event your condominium corporation does not have insurance or lacks the funds or coverage to fully protect your condo. Given that the risk is higher when you rent out a condo, adding this coverage could prove invaluable.
• Cyber liability: If you store client information digitally, this protects you from data breaches and cyber incidents such as hacking or phishing attacks.

Common types of Airbnb insurance claims

Though insurance claims are rare in the Airbnb world, they do occur. Here are some of the most common ones:

• Guest injuries: You have steep, hardwood stairs. While climbing up, a guest accidentally hits a step and breaks their toe. They hold you liable for the injury. Your general liability coverage will pay for any legal fees and medical bills this may necessitate. While rare, these claims can be costly without proper coverage.
• Theft: A guest steals your expensive jewellery set, costing you thousands of dollars. Your commercial property coverage can reimburse you for the loss.
• Income loss: Your guest sues your condo company over injury at your building’s gym. Unfortunately, the lawsuit exceeds the company’s insurance funds, which means some of the costs are passed on to you. If you have loss assessment coverage, those remaining costs will be covered.

How much does Airbnb insurance cost?

The cost of Airbnb or short-term insurance can vary based on multiple different factors. At minimum, most hosts should expect to pay $700 per year.

Some of the factors to affect your premium include:

• Type of coverage: The more things you choose to cover, the more it’ll cost you in annual premiums. For instance, if you add cyber liability to your property and general liability coverage, expect to pay more.
• Coverage amount: Opting for lower limits for liability or property damage protection can decrease your premium. However, this will be at the expense of your financial security.
• Location: Where your rental property is located plays a significant role in determining your insurance rates. Insurers assess the risk associated with the area, considering factors such as proximity to natural disaster zones (think floods and wildfires), local crime rates, including theft and vandalism, and proximity to emergency services, like fire stations or hospitals.
• Type and size of your property: The physical characteristics of your property are a major consideration for insurers. Is it a single-family home or condo? Square footage, number of rooms and materials used to build the property (e.g., brick vs. wood) all affect your replacement cost, influencing your premium.
• On-site amenities and features: Certain features can increase the risk of liability claims and, as a result, raise your insurance premiums, such as swimming pools, fireplaces, wood stoves and trampolines.
• Rental frequency: How often you rent out your property directly impacts your insurance costs.
• Claims history: Just like with car insurance, a history of previous claims can lead to higher premiums. If you have filed multiple claims on your property in the past, insurers may view your property as a higher risk. Maintaining a clean claims record is one of the best ways to keep your rates competitive.

How to get the cheapest Airbnb insurance rates

The easiest way to lower your rates is by trying any of the following:

• Bundle policies: Combine your home, auto and short-term rental insurance with one provider to receive a multi-policy discount.
• Increase your deductible: Opting for a higher deductible can lower your monthly premium, but ensure it's an amount you can comfortably afford to pay out of pocket.
• Maintain a good record: Avoid filing claims for minor damage. A small crack that you can quickly patch up yourself isn’t worth it. If you maintain a claims-free record, premiums will remain low.
• Ensure safety: Installing security systems, smoke detectors, and fire extinguishers can often lead to lower insurance rates.