Goodbye, Airbnb.

[Mark1642]

UNreal.  Airbnb's charade of pretending 'they've never heard of this issue', regarding homeowner insurance NOT providing inclusions for Airbnb rentals in primary residences (home sharing).  I was told by several insurance carriers that MOST Airbnb Hosts just do NOT know that they're NOT covered or just don't care & are taking the risks.

We're near retirement & simply CANNOT afford to lose everything we've worked for in our working lives.  NOT worth the risks of getting sued & having our house burned down (accidentally or otherwise) because of a guest.  

The FEW insurance providers that will actually cover Airbnb are crazy expensive.  We were also told that IF our current insurance provider finds out we did (past) an Airbnb, they will instantly drop us. 

We have 'snoozed' our listing while we investigate.  It appears we're much better off just renting long term (month-by-month) to students.  So we are moving in that direction & will most likely delete our Airbnb hosting account soon.

It is UNfathomable to me that Airbnb is just IGNORING this giant problem.  Especially now that they have a trillion dollars (from their IPO) to work with.  Bringing 'strangers' into your home is a HUGE RISK.  They know this.  This is NOT a secret.  As for now, it's up the the hosts to meander through the limited options for homeowner coverage.  And their $1million 'Host Protection', in California.....are you kidding me???  That WON'T go far if a guest gets hurt & decides to take us to court!  The potential to LOSE everything is very, VERY REAL.

So we are pretty much DONE with being hosts with Airbnb (SUPER hosts, at that!), until & unless they actually can come up with some solutions to this problem that is eventually going to bring them down if they don't.  

It was a good ride but an INCREDIBLE RISK that we were ignorant of until now.  Well done, Airbnb...you've lost another host.  How many more & how much longer?  

[Mark1642]

I also noticed Airbnb DELETED my previous 'conversation' regarding this issue.  They don't like the criticism & want this issue to just 'go away', I guess.

[M199]

@Mark1642 

So sorry that you are upset.  It is not an Airbnb issue. Airbnb is a marketing tool for your business.

Rentals in most countries are considered a "business", subject to business laws and regulations.  Insurance companies classify renting as a business and therefore commercial business insurance is required. 

I can't speak for other hosts, but insurance is a fact of life.  So your options are to 1-pay the commercial insurance or 2-quit.

Which will cost you more?

Btw - In our situation, we...

1 - had to buy commercial insurance,  yes, more than home insurance

2 - pay $800 for 2022 Municipal registration.

3 - register for federal and provincial GST

4 - You may want to talk to your insurance broker about renting to students and tenancy rights (after, normally, 30 days).

It's  the cost of running a business.

Oh, and by the way, there have been numerous threads about commercial insurance on the site.

Best Wishes, whatever your choice.

[Mark1642]

I appreciate the 'attempt' at 'help'.  Already know/done the things you've mentioned.

[Kia272]

@Mark1642  It's your responsibility to understand your homeowners insurance as well as the service that AirBnB provides. AirBnB is a listing platform and not much more. You are running a business when you host an AirBnB, and along with the PROFIT comes the responsibility for many things, including compliance with local jurisdiction regulations, tax payments, etc. This is your responsibility, not AirBnB's. Stop slinging blame, because it's not appropriate in this situation. 

If "Bringing 'strangers' into your home is a HUGE RISK" , then it's understandable that insurers would charge more money to insure against that risk. It seems you started your business without a full understanding of what is involved, including the costs. 

---

[Mark1642]

Stating the obvious...incredibly UNhelpful.

[Kia272]

@Mark1642  Wait- now I'm confused. If this is obvious, then what's the basis for your argument (rant)? 

[Mark1642]

I don't need another crucifixion!  I've already done that myself.  Real, valid suggestions are helpful.  And I live in California, USA.  Information on insurance coverage in other countries is NOT helpful.

[Sarah977]

@Mark1642  Do you realize that these are other hosts here trying to be helpful, sympathize, and offer some advice? Telling other hosts who have taken the time to answer here that they are unhelpful and stating the obvious is incredibly rude. 

If all you wanted to do was rant and not receive any feedback, you could have done that in front of the mirror.

[Mark1642]

Please, Sarah....give it up & move on.  You are NOT being helpful OR sympathetic to the real, serious issue here.  

[Mark1642]

Thank you, Kia272, for the crucifixion.  I already know this.  Was I an idiot?  Indeed.  Next.

[Mark116]

I'm a little more sympathetic to @Mark1642 .  You do NOT need commercial insurance for long term rentals unless you have a certain number of units, not for 1 or 2.  To me, it is unfair that short term rental, which is people using the space as a residence, exactly the same as a tenant, can price hosts out of the market due to extra regulatory burdens and costs and having to carry commercial insurance.  Airbnbs are not hotels, they should be regulated more like a rental apartment than a hotel.  It's unfortunate that Airbnb never really fought for hosts on this issue.

[Huma0]

@Mark116 

I've never heard of Airbnb homeshare hosts needing to take out some kind of commercial insurance, but as far as homeowners insurance, here in the UK at least, very few policies would cover Airbnb. It is probably also against the conditions of your mortgage.

Of course, for separate properties, there is landlord's insurance, but I am not sure if that would cover STRs either. I suppose everyone just has to check the fine print of their policy.

It is a shame though that there are not more insurance options out there for small time hosts, seeing as Airbnb is hardly a new thing...

[Helen3]

Happy New Year

As a homeshare host, I have taken out home insurance for short term lets when I first started hosting six years ago. Personally I would never rely on Airbnb's guarantee as it has too many exclusions.

There are about eight companies in the UK that offer this type of insurance @Huma5 

[Mark1642]

I'm NOT in the UK.