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The Best Insurance for Airbnb Hosts in 2024

In order to protect yourself and your vacation rental when hosting guests, it is important to get the best insurance policy possible. “Well I have great homeowners insurance and it does the trick!” you might say… Wrong! Read on to see what truly is the best insurance for Airbnb hosts…

Best Insurance for Airbnb Hosts

What is the Best Insurance for Airbnb Hosts?

The best insurance for Airbnb hosts is Proper Insurance. They offer more coverage options than their competitors. When comparing Proper to CBIZ (their direct competitor), Proper offered more coverage options at a similar premium to CBIZ.

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We’ll dive into some specifics on vacation rental insurance below, then we’ll discuss Proper, CBIZ, and the other best options for an Airbnb or vacation rental. Let’s get started!

The Special Circumstances and Risks of Vacation Rentals…

The second you start allowing strangers to stay in your home as a business venture, you open yourself up to a multitude of risks and liabilities. Some things that may come to mind are theft or physical damage to your property.

But have you considered other items such as a bed bug infestation? How about a guest asking for damages when he fell off of the host-provided bicycle a block from your house? Or a trip to the emergency room after the rental’s canoe was flipped over and the guest couldn’t swim. What about a fire in your kitchen that shuts down your entire summer of rental income.

These are just a few of the items that would never be covered by a standard homeowners policy.

What’s worse? You decided to keep your homeowners insurance, and one of your first guests steal all of your furniture. You call your insurance carrier and tell them what happened. Boom! They cancel your policy for operating a business out of your home. “That’s not allowed per our terms and conditions” they say.

Do Airbnb Hosts Need Extra Insurance?

The short answer is yes. You do need additional insurance if your guests are injured or damaged while staying at your property. While the standard homeowner’s insurance plan covers you up to $1 million in liability, you’ll want to consider purchasing a plan that includes a higher limit for your property. In addition to general liability, you may also want to add coverage for bed bug infestations or liquor liability.

While Airbnb does offer some insurance for its hosts, it doesn’t cover every potential problem. For example, Airbnb’s host guarantee covers only certain kinds of damages, including theft and personal injury. Moreover, Airbnb doesn’t cover intentional damage, pollution, and mold. For this reason, you should get a separate policy for your Airbnb rental property.

Doesn’t Airbnb Provide Property Insurance? “They Have AirCover So I’m Covered…Right?”

Airbnb’s AirCover for Hosts comes with a range of limitations. While it offers a comprehensive range of benefits, it does not cover certain things, including weapons, currency, or deep cleaning. It also excludes certain items, such as fine arts, paintings, and antiques. Given these limitations, AirCover for Hosts is best considered as a backup plan, rather than primary coverage.

AirCover does not cover theft and does not cover communal areas, such as common entrance halls in block-of-flats. Additionally, Airbnb recommends that hosts take out additional insurance to protect their property and assets. While this service does not provide cover for everything, it is a good start in the event of an emergency. Check out this video for more information.

Do You Need Business Insurance for Airbnb?

If you are considering running an Airbnb business, you need to make sure that you are properly insured. There are several ways to do this, and a professional insurance broker can help you decide which insurance is right for your property. Some companies even offer bundle policies that save you money. 

Before you get your Airbnb business insurance, be sure to check your existing homeowners insurance coverage. Many policies require that you show proof of broken or forced entry. 

Airbnb hosts should also consider having liability insurance, which covers them if they are injured on your property. It also covers third-party liability and lost income, should a guest cancel their reservation. It is also helpful to have a property and contents policy, which covers the contents of your Airbnb space.

How Do I Protect Myself as An Airbnb Host?

As an Airbnb host, you should consider obtaining primary liability insurance. This insurance will cover you in the event of a guest accident or property damage. Airbnb also requires hosts to work with guests first before filing a claim. This is a good safety net, but you should also ensure you have adequate insurance coverage for your home.

Doesn’t Airbnb Provide Property Insurance?

Airbnb does not provide homeowners insurance, but its host protection option does. This option will cover your home in the event of a loss or damage, and will cover deductibles. It will also cover any extra expenses you incur from providing accommodations to your guests.

Guests do not have to pay for this insurance, but it is worth the extra coverage. However, Airbnb does not offer refunds or cancellation fees. It is best to consult your homeowner’s insurance company before making any final decisions.

Homeowners insurance is an important consideration for Airbnb hosts. Using a regular home insurance policy for your home is a poor idea, as most policies don’t cover you if you rent out your home to paying guests. Moreover, Airbnb requires that hosts disclose all details about their home to guests. Without an insurance policy, Airbnb hosts are left with no protection if anything happens to their home.

What to Look for In Vacation Rental Insurance?

A good home-sharing insurance policy should have liability coverage, with few exclusions for guest injury. Liability coverage is vital for Airbnb hosts because guest safety is the biggest risk of any home-sharing experience. 

It should also include location-specific coverage for things like floods and earthquakes, since some regions are more vulnerable to these natural disasters than others.

Most homeowners and renters’ insurance policies aren’t tailored to protect vacation rentals. The same applies to commercial property insurance policies. Both types of insurance cover liability and property damage. Some types may need additional endorsements.

The Best Insurance for Airbnbs

Great insurance is crucial for the protection of both property and personal belongings. AirCover protects Airbnb hosts from damage caused by guests and their pets. While the Host Guarantee program covers property damage caused by guests, it does not protect hosts against injuries or lost income caused by circumstances beyond their control. 

For this reason, we highly recommend that hosts get additional insurance. We love Proper Insurance as it offers several benefits, including a 5-minute online quote and an insurance agent on call 24/7. 

It also has a 24/7 claims hotline to handle any issues pertaining to vacation rentals. Its premiums range from $1,500 to $3,500 and are based on the amount of personal property and income replacement that you need. Find out more below…

Proper Insurance

Proper Insurance is the nation’s most experienced provider of insurance policies for Airbnb hosts. It offers comprehensive coverage against liability and property claims. Proper Insurance policies replace a host’s current landlord or homeowner’s insurance plan and can protect a host against any number of risks.

Proper insurance covers building and contents against damages and theft. It pays for actual losses sustained against fair market value. And unlike other insurance policies, it does not have any time limits.

Thorough Review of What Proper Offers and Why It Is the Best

Proper specializes in Airbnb insurance and offers comprehensive coverage for liability and property claims.

 Its policy can replace your landlord’s insurance, homeowners’ insurance, or other commercial business insurance. The policy comes with many valuable features, such as online quote portals. Here are some of the benefits and why we feel it is the best: 

Proper Insurance Coverings

Building and Contents Coverage

  • Building Damage Caused by a Guest (Includes Accidental, Intentional or Malicious)
  • Contents Damage Caused by a Guest (Includes Accidental, Intentional or Malicious)
  • Theft By a Guest
  • Water Damage

Commercial General Liability Coverage

  • Liquor Liability
  • Animal/ Pet Liability
  • Communicable Diseases
  • Assault & Battery with Sexual Molestation
  • Amenities On & Off Premises (Pools, Hot Tubs, Docks, Bicycles, Kayaks, Etc.)
  • Loss of Use

Policy Enhancements

  • Backup of Sewers and Drains
  • Collapse Including Sinkhole, Ice/ Water, Snow, People
  • Debris Removal
  • Unscheduled Structures

Optional Enhancements

  • Bed Bug Extermination & Business Revenue
  • Squatters & Eviction Expenses Plus Business Revenue
  • Equipment Breakdowns
  • Business Income Coverage (for Loss of Revenue)

What People Are Saying About Proper Insurance

The Proper insurance company is a well-known and well-respected insurance provider for vacation rental property owners. Check out the customer reviews…

Better Business Bureau’s Proper Customer Rating: 4.68/5

Yelp’s Proper Customer Rating: 4.5/5

What Proper Insurance Offers?

  • Covers the building and contents for owners of vacation rental properties
  • Covers liability and business income
  • Includes coverage for loss of income due to vandalism and damage to property
  • Includes extended liability for swimming pools, bicycles, and gym equipment

They also offer flexibility to accommodate different types of occupancy. Depending on the insurance policy, you can choose from policies for short-term rentals, long-term tenants, and even unoccupied rental properties. 

Other Airbnb Insurance Policy Alternatives

CBIZ

CBIZ is a direct competitor to Proper Insurance. When comparing side-by-side policies, we found CBIZ to not have as many coverage options as Proper Insurance. Given that the quoted policies were within dollars of each other, the logical choice was Proper Insurance.

Mercury

Mercury Jnsurance has dedicated short term rental insurance, but did not provide coverage in every state.

American Modern

American Modern does offer vacation rental insurance, but it is not for full-time vacation rentals. Only temporary short-term rental situations when the home is mostly occupied by the owner of the property.

AllState

Allstate offers short-term rental insurance. With the Host Advantage, you can extend the protection of your existing homeowner’s policy to your rental property. The policy covers the dwelling, other structures, and fair rental income.

It also provides premises medical protection, which covers your medical bills in the event that your guests get injured on your property. Additionally, you can get an umbrella policy that protects you in the event of third-party lawsuits.

Foremost 

Foremost offers a variety of coverage options for all types of rental properties. Their basic coverage provides coverage for building damages and losses, but they also have a variety of coverage options that can be customized to fit your needs. One of these options is loss of rental income, which will protect you from losing money if something happens to your property. 

Our Conclusion 

Proper is one of the largest specialty insurance providers in the world and offers policies for property owners nationwide. We feel the provider is highly reputable and perfect for short-term rentals. They offer great policies and free quotes and can customize your policies to meet your needs.

Overall, we feel Proper is the best choice! Ready to get started? Click here to get your free quote.

Ryan Drew- Contributor
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Ryan Drew- Contributor

I'm an Airbnb Superhost sharing my Airbnb journey and tips that I've learned along the way.

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