Are you clients considering renting their home out through Airbnb? If so, here is what you should know to make sure they are covered.
Airbnb began in 2008 when two designers who had space to share hosted three travelers looking for a place to stay. Now, millions of homeowners choose to create a Airbnb account so they can list their space and book accommodations anywhere in the world. Airbnb provided an automatic insurance policy for all homes rented using their service through a program called Host Protection.
The Host Protection Insurance program is provided to hosts and their landlords free of charge and participants are not required to pay an insurance premium in order to benefit from protection under the program. The program provides primary liability coverage for up to $1 million per occurrence in the event of third party claims of bodily injury or property damage. The insurance policy under the Host Protection Insurance program is provided through Lloyd’s of London.
Airbnb is the policyholder under the policy and Airbnb hosts are the insured parties. The Host Protection Insurance program will act as primary coverage for eligible losses. Your client’s home or landlord policies will be considered excess. Some home insurance companies will cover the insured if they are renting their property for a single occasion, accord to Insurance Information Institute (III). An endorsement and advance notification may be required.
If the house is being rented out on a regular basis, most insurers will consider that a “business” and require the home owner to purchase business insurance.
Start the discussion now with your clients if this is something they are currently offering or considering in the near future.
Contact me for more information on how to keep your clients covered in any situation.
Tamara Gatson
President, Gatson Training Associates
Founder, insurancelicensenow.com