Is Airbnb's liability protection enough?

Question

So I'm going to be renting out a condo in California on Airbnb. Condos are difficult and expensive to insure here. The HOA offers enough protection for the unit itself and Airbnb claims to offer $1m liability protection. What is the consensus on Airbnb's insurance? Can you trust it if somebody sues you? Does it provide protection between stays? My gut tells me I need my own liability protection--I'm in business with Airbnb but don't exactly fully trust them--but like I said, it's difficult and expensive to obtain. Thoughts?

Brett Deas · Answer

Never rely on Airbnbs insurance. Many people have had bad terrible experiences in the past, and with the direction Airbnb is going I don't think its a great idea to rely on them.

Greg Scott · Answer

Get an umbrella liability policy.  They are written off your personal residence.

Dre N. · Answer

Umbrella policies only kick in to cover any excess of what your initial insurance coverage doesn’t cover. So if the initial insurance company denies the claim, you’re out of luck.

Mya Toohey · Answer

As a host here in Florida i would always make sure to have an umbrella policy that covers personal liability if something happens.

Rick Albert · Answer

Are you allowed to do short term rentals in your condo? Most don't allow it. If that is the case, then I'm not sure any insurance carrier will cover you because you are violating the rules. Remember: Insurance companies want you to pay the bill and when it comes to their turn, will do everything they can to NOT pay.

I would get clear on that piece before proceeding further.

John Mocker · Answer

Mike,

If you are not going to cover your belongings and the parts of the Building you ar responsible for, another avenue to try is to see if your Homeowners policy can add that location for Liability only.  Be upfront about the use of the building to make sure the AirBnB is acceptable.

Michael Norris · Answer

Talk to your agent in Cali - you will need a short term (STR) renters policy on the condo as a base level policy which opens the door to getting an umbrella policy. Many if not all STR policies cover the dwelling itself but may exclude liability while you have guests because the Airbnb coverage is primary in that situation. Also you may have a different liability situation outside of an Airbnb guest where you wouldn't have coverage if only relying on the Airbnb policy. The insurance world was not ready for Turo, Airbnb, etc and is still adjusting.

Your condo master policy typically covers up to the studs or up to the drywall and almost 99% guarantee will not rebuild the inside of your unit if there is a major loss.

Also a big one - on your condo STR policy make sure to get coverage assessments that may come down from the HOA board. Condo's frequently come up short on insurance claims and any unpaid amounts will get divvied up among the residents and you owe it - period. Having the assessment coverage on your condo policy is cheap and can save you some pain.

Owen Rosen · Answer

I wouldn't rely on AirBNB - at all.

The HOA is highly unlikely to rebuild the interior of your condo...have you checked on that?

Even if they did insure the entire condo (unlikely) or if you decided to self-insure for physical damage you could get premises liability on the property.

Owen Rosen · Answer

An umbrella policy will not kick in if there is no underlying liability insurance on the property - AirBNB's insurance will not count for that.

Is Airbnb's liability protection enough?

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