Airbnb hosts in Texas

[Angela-And-Brandon0]

Does anyone have recommendations on Homeowners insurance that allows "home sharing" riders, or some sort of liability coverage? All the talk about not having additional insurance concerns me with having an airbnb in my home. It was easy to get a home sharing rider in Oregon but now that we've moved to texas it doesn't seem easy at all.

I understand there is aircover through airbnb but I've not read it's a guarantee if a guest were to sue. Please let me know who you might use for your additional coverage. Thank you!

[Bhumika]

Hi @Angela-And-Brandon0 , thanks for sharing your doubts with fellow hosts. I am reaching out to a few hosts from Texas if they can share specific guidance about it.

Hi @Raymond604 @Alan2116 @Hajar57 @Jamie1456 @Melissa3031 @Rocio557 @Zade50 , do you have any suggestions for @Angela-And-Brandon0 ? Thanks everyone in advance!

Regards,

[Wendy-May0]

@Angela-And-Brandon0 That’s a totally valid and smart concern, especially since you've experienced how simple the rider option was in Oregon. You are 100% right that AirCover shouldn't be your single point of protection, it's a safety net, not a guaranteed, comprehensive insurance policy.

The main obstacle in Texas is that most standard homeowners policies view frequent short-term rental activity as a business and they have an exclusion for commercial use. If a guest sues you, they can deny the liability claim entirely.

The simplest fix is to stop looking for a "rider" and switch to a dedicated Short-Term Rental (STR) policy which essentially replaces your homeowners insurance and is designed to cover both personal and business use. This makes sure you have the proper Commercial Liability that protects you if a guest gets hurt.

The providers that Texas hosts rely on most often are companies like Proper Insurance and Steadily. They specialise in policies that cover guest-caused damage, liability, and loss of rental income, which standard policies usually ignore. You might also find luck with a local independent agent who works with specialty carriers like Obie.

My best advice is to first call your current homeowners provider and confirm that commercial activity is excluded. Once you know that, you can confidently switch to one of the dedicated STR policies for full protection.

Feel free to ask me any questions about comparing those providers or what liability limits you should aim for. Are you planning to rent the entire home, or just a room within your new Texas residence?

[Angela-And-Brandon0]

@Wendy-May0 Thank you so SO much! This is exactly what our current homeowners agent was explaining. Which we are with allstate and they do exclude commercial type of activities.

We are just planning to rent our master bedroom. We would still be living here as our primary residence.

My broker did give me a quote for the type of insurance you reference (it was called a landlord policy I believe but we could only do it if we rented the entire home, either as a whole home rental, short or long term or with the master separate from the main house - but both rented, we couldn't live here at all. That seemed like a very expensive way to go AND we still need to live here lol

[Joan2709]

@Angela-And-Brandon0 

The best way to determine options is to speak to an independent insurance agent in your area. They can advise what options might be available (rider or stand-alone policy) and what insurance companies offer these policies.

I believe State Farm and Farmers offer Homeowners Insurance with a rider. Landlord policies will not work, as they usually stipulate the guest/tenant must occupy the premises for 30+days.

Here are some videos to watch with more information.

Are You Making These Big STR Insurance Mistakes?

https://www.youtube.com/watch?v=ludMgNkjJtQ&t=167s

Vacation Rental Insurance 101 – Aircover is Not Enough

https://www.youtube.com/watch?v=ZT1e6RpOVi4&t=190s

Be sure the policy has the following coverage and review any exclusions:

1. Building & Contents (in case of natural disasters not related to guests)

2. Premises Liability (guest injured and sues – Airbnb Liability can also cover but difficult to process a claim)

3. Loss of Income (in case of major damage; reservations cancelled)

Be sure you read the fine print on any STR policy as there can be many exclusions and restrictions