Airbnb insurance policy questions

5 Replies

Hi all,

I am a new investor, running a successful Airbnb. I am using the model of renting a property and running the Airbnb out of that, and I have the owner's full support and permission to do so (he is a dear family friend). 

My question is about insurance. Right now the owner of the home has a regular old homeowners insurance policy on the house. I have heard that if something were to happen, the fact that it is being used as a short-term rental can nullify the coverage. I am familiar with an insurance company called "Proper Insurance" which is specifically designed for properties being used as vacation/short term rentals. For anybody else out there using this model of renting a property to then run an Airbnb out of it, my question is this: does the owner of the home have a traditional insurance policy and I would then get the Proper Insurance policy on top of that as a secondary policy? Does the home owner just have the Proper Insurance policy and nothing else? Should I, as a tenant, get a general liability policy? 

Any and all guidance/ideas would be greatly appreciated. This model is working well for us, and I would like to pursue other property owners, but want to get my ducks in a row before I do.



Hi Shawn, in a similar situation and trying to find answers on google - which has not been extremely helpful. Since you posted 5 months ago, were you able to find an answer to your question? 

Ran into this thread today and this has been one of my question as well. Wanted to see if anyone has any input?

Hi Jamie and Jason,

So we ended up, per our insurance agent's recommendation, having the owner of the home secure a Proper Insurance policy. We then factor a portion of that cost into the monthly rent that we pay, since it is a little more expensive than a traditional policy.

Hope that helps!

You have the homeowner get rid of his insurance and you have them replace it with a commercial policy or a dwelling policy with the endorsements you need.

Are you a named insured on your Uncle's short term rental policy? What protects you as the AirBNB operator if the guest sues you for your negligence in some kind of event?

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