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I was considering renting a room out on Air BnB. The one thing that would make it cost prohibitive to even think about doing this is the cost of insurance. My insurance rate would go up significantly to pay for 6 months of insurance with that commercial liability. Probably over $500 including loss of home / auto bundle discount. But does anyone know of an insurer that will insure you on a per-rental basis? That way if I only rent my place for one or two nights then I don't get hung out to dry by $500 in insurance costs. My area is not a particularly hot area. There's one or two places with 20 reviews but that's it. Seems like the only way I could make this work would be if I could pay for business fire and homeowner's insurance per days rented (if any).
I seriously doubt you can get insurance on such a short term basis as you stated. The insurance companies are only interested in maximizing profits and paying out as little in claims as they have to. I will reserve my full thoughts on these leeches and leave it at that.
I guess airBnB requires you to show proof of this additional insurance?
Which would be great, as a consumer. I'm all for airBnB/VRBO/whatever else may exist. No matter what you do, it's going to be better to me - better accommodations and less expensive - than a hotel when you have a family and want multiple bedrooms.
But the industry needs to be regulated along the lines the hospitality industry is now
AirBnB should offer this insurance the same way Uber insures it drivers and recently added protection while a passenger is not in the car and you are on your way to a pick up.
I think people do Airbnb and don't care about the insurance or think about it. I would think Airbnb turns a blind eye to it too. until they get sued at which point they will have to offer something or lose their business model.
AirBnB should offer this insurance the same way Uber insures it drivers and recently added protection while a passenger is not in the car and you are on your way to a pick up.
I think people do Airbnb and don't care about the insurance or think about it. I would think Airbnb turns a blind eye to it too. until they get sued at which point they will have to offer something or lose their business model.
Airbnb does provide a level of insurance protection standard in their agreement for hosts (at least some countries). I have also heard that were considering or indeed do offer additional insurance beyond the standard protection, in some markets.
I don't think it's fair to say that they don't care about insurance. First reason that they care is that fear of your home getting totally trashed will cause some people not to use Airbnb and offering a level of protection will help people to be comfortable (that's why this kind of thing IS covered in their standard agreement in at least some countries). And secondly, additional insurance (e.g. 'spot' coverage for days of stays) is a good source of revenue (insurance sales can be good high margin business).
Airbnb does provide a level of insurance protection standard in their agreement for hosts (at least some countries). I have also heard that were considering or indeed do offer additional insurance beyond the standard protection, in some markets.
I don't think it's fair to say that they don't care about insurance. First reason that they care is that fear of your home getting totally trashed will cause some people not to use Airbnb and offering a level of protection will help people to be comfortable (that's why this kind of thing IS covered in their standard agreement in at least some countries). And secondly, additional insurance (e.g. 'spot' coverage for days of stays) is a good source of revenue (insurance sales can be good high margin business).
I was just speculating and assuming that they don't offer it since the person was asking about it. I would think most people don't even consider to check with their own insurance company. Just like people were driving around for Uber and didn't tell their insurance companies.
I guess airBnB requires you to show proof of this additional insurance?
I don't think AirBnB cares. If they do then their only check & balance is probably nothing more than you checking a box after reading 1,000 words of legal mumbo jumbo.
Quote:
your home getting totally trashed
I'm worried about slip and fall lawsuits as well as that guest who burns down my house and the entire neighborhood.
Most insurance companies would not pay a claim if you did not disclose that you were using your home as an Air BnB or running any type of business out of your home without disclosure! Just as insurers were not paying claims if you had an incident while using your car as an Uber but didn't disclose it to the auot insurance carrier.
It would need to be on a commercial policy as you are running a business. I have never heard of an insurance company that would allow you to be insured for this type of risk on a "per-rental" basis. I'm pretty sure that doesn't exist. And of course it's going to be more as you are letting complete strangers into your home to stay for a fee. It's an elevated risk for an insurance company. Personally, I wouldn't want to not have the proper coverage because not only could your home be damaged by the person who is staying there, but like you stated they could get hurt as well and you need to have liability coverage.
There are different policies for different risks. Even if you are only having someone stay once a month, you're still conducting a business out of your home and therefore that is the type of policy you need. Also, IF Air BnB offers insurance (like Uber) it's most likely NOT proper coverage! If you're going to run a business, it's an expense!
I have a nightly rental cabin which is located on my property in the ozarks, but it separate from my main house. It is advertised on airbnb and VRBO. I have an insurance policy on the cabin, for use as a nightly rental, and an additional liability policy. It cost me about $1500/year for a 600 sq ft cabin. I had to look hard to find a company to insure it. The company I have my main house insured through wouldn't cover the rental cabin. Also, VRBO offers liability with rentals auto booked through them, not sure on airbnb.
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