List of Insurance Companies Who Will Deny Claims if Home is Airbnb?

[Alan1009]

I just spent 2 days talking to Progressive insurance because i though I was going to get a better rate than my current insurer.

Then after starting auto insurance with them (you have to do one at a time because they can't handle all 3 at once like other companies) I found out they deny claims or do not cover for Airbnb homes even though their website language is very ambiguous on this using words like "typically" , "likely", and "generally". https://www.progressive.com/answers/does-home-insurance-cover-airbnb/
At the least i would like to warn others about Progressive but is there a resource for finding ones that do? or if so do they require special coverage?

I'm sure none would want a wind damage claim denied if they somehow find out its an airbnb home. 

[Joan2709 · Accepted solution]

@Alan1009 

I don't know of any insurance companies who will cover your Airbnb property unless you purchase a specific Short Term Rental policy. Typical Homeowners insurance will not cover operating a commercial business on the property. If they find out you are operating an Airbnb on the property, not only will they deny any claims, they will cancel your policy. Typical landlord insurance also won't work, as that is only for long term renting (usually over 30days).

There are a few companies that offer short term rental insurance (in the US). You will find the premiums to be more expensive as there is more risk. I suggest you get a higher deductible to off-set the higher premiums. Suggest you contact an independent insurance broker in your area to inquire as to who offers short term rental insurance in your area. Be aware that some offer coverage only for 30days or less. If you do mid-term or long term renting on Airbnb, you would need to let them know that.

Proper Insurance is the most comprehensive (and most expensive) but they are nationwide and seem to do a good job: :

Farmers (Policy thru Foremost Insurance) - Add on policy
State Farm - Add on policy
CBIZ - Stand alone policy
Proper Insurance Company - Stand-alone policy (covers 30days or less last I checked)
Steadily
SuperHog (some Hosts don't feel they are very good. Only covers dates of reservation)
Mercury
Safely
Travelers

[Alan1009]

thanks for answer @Joan2709 , I guess then it needs to be determined if I get enough bookings to cover the premium increase. hmm, and i don't get a lot.
And also it is possible that some, like Progressive does not offer a specific policy so it would be helpful to know which do not do that at all. 

[Kitty-and-Creek0]

@Alan1009 

Glad you asked. This is a very important topic! @Joan2709 is totally correct, and saved me responding with the same information. Any STR use of the property is business, and homeowners does not ordinarily cover business use. As @Joan2709 said, you will be at high risk for losing your homeowners coverage completely without a business insurance policy added on. 

Your business permitting agency  - planning and zoning commission offices - from the city or county where you are located should have advised you on that, they are a wonderful source of information and coaching. Often the requirement and advice for business insurance coverage is written into the local ordinance governing STR.

Definitely get with your insurance agent, and if they do not sell the policy you need,  you could benefit from shopping for a different (independent) agency. @Joan2709 has provided an excellent list. 

[Farah148]

Hi, @Alan1009. I was able to add home sharing coverage to my existing homeowners policy with Farmers for my guest home. However, keep in mind that my guest home is attached to my main home (it was originally a garage conversion) and is used for Airbnb rentals less than 49% annually. Not all agents are familiar with this specific situation, so if you reach out to Farmers, be sure to mention it. Ask the agent to research your property type to determine if this option could work for you. Hope this helps!