Liability Insurance

Answered!
Kathleen195
Level 2
West Hollywood, CA

Liability Insurance

What happens in the event that an airbnb rentor/client has a liability cliam that exeeds the property owneres policy limits? Or if the property owner's insurance lapsed or was cancelled.

Airbnb must carry some type of excess insurance coverage but nobody seems to know much about it.

I know airbnb offers a $1,000,000 blanket policy but I'm told it has a lot of exclusions & exceptions. What if someone has a multi million dollar claim?

I really appreciate any help you can offer.

Thank You

Kathy

 

1 Best Answer
David126
Level 10
Como, CO

I missed this thread but most unlikely ABB, a Booking Agency could be held liable, if they were included in any action no doubt their Lawyers would seek exclusion, anyway the AirBnb lawyers would obviously be there to protect AirBnB.

 

I do not know the details of AirBnB's own coverage, no doubt it is substantial, but they are also a major company and could no doubt self fund such issues anyway, most Hosts can not.

 

To answer the question lets assume there is a valid situation, Host is liable and a judgement is awarded then once any Insurance cover is exhausted Hosts assets come into play and if they are not sufficient end result will be Bankruptcy.

David

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19 Replies 19

Foremost insurance is excellent!  We purchased it through our agent.

 

We got Foremost insurance through our agent and they have been excellent to work with.

 

Julene2
Level 3
IVGID, NV

Given that guests cancel credit cards (making your security deposit a joke) and Airbnb is arbitrary in how they pay out claims - better have all your receipts and pictures ready - I looked into new insurance.

 

It is true regular homeowners policy won't help you much with an Airbnb claim. Because if it happened when an airbnb tenant was in occupancy - that is business not personal. You have to find insurance for your State that covers rentals. I found Lloyds of London for a NV policy and another one that was not as comprehensive.

 

You can expect your deductible to be much higher, and the cost to be at least double what you paid for a good Homeowners policy. Is it worth it? It is to me. But you have to look at your assets and make sure that a slip-and-fall case on your property won't send you into bankruptcy or loss of assets. 

 

There are some rather good YouTube videos to consult regarding the pros and cons of rental insurance. So that's a good start to educate yourself on the matter. Then take what you learned to your insurance broker or search for rental insurance on the web. I got a quote quickly! 

Kathy1130
Level 2
Michigan, United States

It is essential to have!

Julene2
Level 3
IVGID, NV

The OTHER booking site allows Hosts to have guests buy supplemental insurance at a coverage you choose. Much better than a useless security deposit. The Insurance is through CSA Travel Protection @ (888)501-3025. Maybe they can offer what you're looking for.  Coverage below was $79 for $1m coverage.

 

"Your guest has selected Property Damage Protection to safeguard your vacation rental property - [xxxxx. Please be advised that the guest/policyholder has assigned potential benefit payments to you.

 

In order to safeguard your right to settle damages not covered by Property Damage Protection, we encourage you to file claims within 7 days of discovering the damage. In the event of submitting a claim, please remember to include all documents and photos to expedite claim processing.

 

Need Help? Call us to speak with Customer Care.

CSA Travel Protection | (888)501-3025

 

PURCHASE DATE

September 28, 2020

 

MESSAGE:

Your property is now protected!

Policy Number: 20272xxxx

PLAN CODE: B1

TOTAL PRICE: $79.00

PROPERTY ID: 751xxxx

HA RESID:HA-xxxxx

INSURED NAME:  xxx xxxx

INSURED EMAIL: xxxxx@gmail.com

TRIP ARRIVAL DATE: Dec 19, 2020

TRIP DEPARTURE DATE: Jan 16, 2021

"