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To List Or Not To List On Airbnb: That Is The Question

Home sharing has been gaining traction quickly, and many people pull up Airbnb before any other site when they’re checking out potential travel accommodations. The concept is simple, but very effective. Maybe you’ve even considered renting your apartment or home out for a long weekend to generate some cash flow while you’re out of town. There are any number of reasons that you might be tempted to list your residence on Airbnb, whether you live in a coveted downtown area or a charming house off the beaten path.

Should you decide to go ahead and list with Airbnb, make sure to reassess your current policy by getting a few home insurance quotes. While Airbnb does offer certain protection guarantees, they’re far from a sure thing. Learn more below:

What Does Airbnb Cover?

Airbnb boasts a host protection guarantee of $1,000,000. As you keep reading, you’ll notice that the company plainly states on their site that this pledge should “not be considered a replacement or stand-in for homeowners or renters insurance.” Besides removing valuables from your home before listing, you’ll want to consider that these types of assets are not covered by their one-size-fits-all policy:

- Cash and securities
- Pets
- Personal liability
- Shared spaces and common areas

In 2014, a high-profile example of an Airbnb listing gone wrong happened to a Los Angeles-based designer. As Business Insider reports, Amanda Wong had to pay $10,000 dollars in damages to a neighboring unit after an Airbnb guest plugged her toilet and caused a leak. Airbnb paid for her $78 dollar plumbers fee, but denied her other claims. Why? Because Airbnb does not cover damage that is not in, at, or on a Covered Accommodation, as per its terms and conditions.

Classifying Your Coverage Needs

The Insurance Information Institute has guidelines for renting your property safely and legally. If you are considering renting out your space for a short period of time, your insurance carrier may require an endorsement to extend your existing homeowners or renters insurance policy to cover your guests. If you plan to rent out your residence habitually, you need to consider it a business. This activity would not be covered by standard homeowners insurance, so protecting yourself with additional insurance is a must.

Gather Home Insurance Quotes

It’s important not to make any assumptions along the way about protection against damages or lack thereof. There is absolutely a secure way to list your place on AirBnb, but it’s up to you to make sure your homeowners or renters insurance is up to snuff, and to determine whether you require additional business insurance. If a guest happens to cause damage to your neighbor’s property, are you equipped to deal with the ramifications? You certainly wouldn’t leave your jewelry, cash, or highly personal items laying out while strangers stay in your abode. Without adequate insurance coverage, you’re taking a much bigger gamble that you won’t be held liable for large damages not covered by Airbnb’s guarantee.

Compare home insurance quotes today on CoverHound, and sleep easier knowing that your residence has the right level of protection.

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Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.

Insurance shopping simplified

Review personalized quotes, select coverages, and buy online - Everything insurance, all-in-one-place.
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