AirBnb Management Liability/Insurance

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AirBnb Management Liability/Insurance

Member since 2022 · 12 posts · 6 votes

I have a friend that wants to use one of his properties as an Airbnb rental. As he is moving out of state, I offered to manage it for him to see if STR is an investment strategy that I'm interested in. I'm a realtor and so have an LLC for my real estate business. My question is as the co-cost/listing manager what protections do I need? Will the LLC that I have extend to Airbnb management? My questions are assuming that the owner will maintain homeowners insurance to cover STRs.

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Jeffrey Reyes

Member since 2023 · 43 posts · 20 votes

I'm not an expert but based on my personal knowledge. I would open a separate LLC or fill out some type of paperwork stating that you are working with Airbnb now. Your current LLC falls more into the Real Category while Airbnb deals more with Hospitality. Two different professions.

Also as a Host, you are protected in 3 different ways:

1. Airbnb $1 million host guarantee

2. Renter's Policy Insurance

3. Homeowner's Insurance ( Update your insurance; inform your insurance that you are doing Short Term Rentals.

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Sarah KensingerPro Member
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
2y
Quote from @Michael Baum:

So I took a quick look at Wister.insure. That seems to be the website, but it is quarantined for being a risk.

That could mean a bunch of things. From a simple SSL cert issue to an actual compromised site.

@Sarah Kensinger, be careful when researching. If you can get them on the phone, that would be best. A site like that can cause you a world of grief.

Just saw this....I wasn't going to research just call the company directly or even Proper since they are a sister company. I tend to go directly to the source since it saves me a bunch of time.
[email protected]330-557-3021
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
You can use your LLC, you will just want to talk with your CPA for tax implications. Liability implications are somewhat scant as you would likely be sued for negligence if you were ever to be sued and that would likely pierce the corporate veil. I would talk to an insurance broker and carry $2M liability umbrella and possible E/O
[email protected]813-563-0877
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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
2y
Quote from @Sarah Kensinger:

Quote from @Kaiden Foster:

It seems the general consensus is that it is nearly impossible to get liability insurance as a STR manager? What are STR management companies using then?
Copy and pasted what I posted at the beginning of the thread....
Insurance is important!......Check into Wister a sister company to Proper that understands STR and PM of them. Make sure to ask about including errors and omissions policy, then if something happens like a software malfunction, etc. and you cost the homeowner thousands of dollars, you have insurance to cover that.
Safely or Waivo are nice to have as well, they cover damage from a guest including sheets and towels, and I think also thief. Those companies would not cover you as a PM.
Hope that helps!

Do you know of any others? I talked to Wister and they seem great but they won't cover pools. All of our properties have pools and someone drowning or getting injured in the pool seems like the #1 most likely thing that we would need insurance for, so it's a pretty huge omission. Are there any other options?

It just doesn't make sense to me that there are thousands of STR property management companies out there and apparently virtually no one offering insurance on STR property management.
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Sarah KensingerPro Member
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
2y
Quote from @Ryan Moyer:

Quote from @Sarah Kensinger:

Quote from @Kaiden Foster:

It seems the general consensus is that it is nearly impossible to get liability insurance as a STR manager? What are STR management companies using then?
Copy and pasted what I posted at the beginning of the thread....
Insurance is important!......Check into Wister a sister company to Proper that understands STR and PM of them. Make sure to ask about including errors and omissions policy, then if something happens like a software malfunction, etc. and you cost the homeowner thousands of dollars, you have insurance to cover that.
Safely or Waivo are nice to have as well, they cover damage from a guest including sheets and towels, and I think also thief. Those companies would not cover you as a PM.
Hope that helps!

Do you know of any others? I talked to Wister and they seem great but they won't cover pools. All of our properties have pools and someone drowning or getting injured in the pool seems like the #1 most likely thing that we would need insurance for, so it's a pretty huge omission. Are there any other options?

It just doesn't make sense to me that there are thousands of STR property management companies out there and apparently virtually no one offering insurance on STR property management.
I know many STR company owners check with local business insurance as well. There's a good many in our mastermind that use a local insurance for their business.
[email protected]330-557-3021
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Shanan Goldsmith
Member since 2022 · 3 posts · 2 votes
2y
Quote from @Ryan Moyer:

Quote from @Sarah Kensinger:

Quote from @Kaiden Foster:

It seems the general consensus is that it is nearly impossible to get liability insurance as a STR manager? What are STR management companies using then?
Copy and pasted what I posted at the beginning of the thread....
Insurance is important!......Check into Wister a sister company to Proper that understands STR and PM of them. Make sure to ask about including errors and omissions policy, then if something happens like a software malfunction, etc. and you cost the homeowner thousands of dollars, you have insurance to cover that.
Safely or Waivo are nice to have as well, they cover damage from a guest including sheets and towels, and I think also thief. Those companies would not cover you as a PM.
Hope that helps!

Do you know of any others? I talked to Wister and they seem great but they won't cover pools. All of our properties have pools and someone drowning or getting injured in the pool seems like the #1 most likely thing that we would need insurance for, so it's a pretty huge omission. Are there any other options?

It just doesn't make sense to me that there are thousands of STR property management companies out there and apparently virtually no one offering insurance on STR property management.

Safely insurance is specific for PMs of STRs.
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