Which insurance for hosts?

10 Replies

I own an Airbnb in the US. I would like to make sure I am cover if the guests injury themselves. Also, if they break something (Airbnb doesn't always reimburse fairly). Also if there is more than $300 of damage, the procedure with Airbnb is complicated. For example, I would need to get a police report, etc. 

Do you recommend any insurance company policy? What's the annual cost?

Thank you.

Try CBIZspecialtyinsurance.com they specialize in insurance for vacation rental homes in leiu of standard homeowners insurance.

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Hey @Matt Smith . Smart move looking for short-term rental insurance. A regular landlord-style policy won't cover anything if the carrier learns that the incident occurred during a short-term stay. 

I'll echo @William Leahy . CBIZ is a good provider and who I have used for multiple properties. All-State is also testing out an Airbnb insurance product. (Though, according to  this story, they're debuting it only in select states at first.)

About the cost ... in my experience, a short-term rental insurance policy could be up to 25% more expensive than a traditional homeowner's policy. That's not surprising as the liability risk is higher. If this is your primary residence or a place where you'll stay occasionally, the STR policy will also double as a regular homeowner's policy, so at least you don't have to buy two.

I'm surprised more insurance carriers haven't come out with a product for this. There's obviously a lot of money to be made in the industry, and why they're so behind on rolling out something is baffling.

I'd also look into Proper Insurance. They offer speciality vacation rental insurance, and a lot of the homeowners I've worked with have gone with them. 

Proper Insurance seems to "get it". I had a really good experience starting the policy and feel confident that the increased costs are worth it. Especially with income loss coverage.

Great post!!! I am in need of insurance!THANK YOU

@Blair Russell Thank you for the info. For Proper, like any insurance each time there is an issue and a claim is filed for reimbursement, does my premium go up and up and up?

Since Airbnbs have issues often, I am wondering whether I then get a premium that goes through the roof.

@Matt Smith No Idea as I haven't filed a claim yet, but I'm sure it does. I don't really use this for minor breakages or anything like that. Just the cost of doing business really, plus that's what security deposits are for. 

I called both CBIZ and Proper. Proper was started by a CBiz employee that quit and started his own company doing the same thing. According to Cbiz. I got quotes from both of them and they were very helpful. Proper is very forward thinking and I would guess their cell phones would show up with a blue bubble not a green one. 

I just called Farm Bureau and check on my policy and they said it's a "comercial over-night policy" and it seems to cover me for everything that Proper and CBIZ cover me for. Anyone have any experience with this? 

@Lucas Carl How did the CBIZ and Proper quotes compare, cost-wise? I am in Florida, a state that has awful insurance anyway, and am not happy with my current insurance providers. I tried to get a quote from Proper but because I am out of the country it doesn't appear that they will get through to me. I had looked into CBIZ a year or so ago and seem to remember it as quite expensive.

I have been AirBnBing/VRBO-ing for about 18 months so far and haven't had to use my insurance on any of my 4 STVRs but I have two more coming on line in a couple of months and would like to re-visit my insurance situation. Wish Farm Bureau was available in FL.

Hope your biz is doing well and thanks in advance for any info you might have gathered!

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