What if a guest causes major damage like a fire? Whose insurance covers it?

Val24
Level 2
Northampton, MA

What if a guest causes major damage like a fire? Whose insurance covers it?

If someone causes something major, beyond the security deposit, can I go after their homeowners' or renters' insurance? I would imagine that would have some liability coverage. My insurance company knows I will have a tenant in here. So I imagine they would be the ones to go after their insurance. I'm trying to decide whether I would require a long-term tenant to have renters' insurance or if their homeowners insurance is enough. Thank you

14 Replies 14
Cynthia-and-Chris1
Level 10
Vancouver, WA

If you have a long term tenant, would they ACTUALLY have homeowners insurance?  I would think if someone was renting long term they probably don't own their own home.  It prudent to require all long term rentals to have renter's insurance - but I think ultimately, your homeowner's insurance would be responsible for the bulk of the damage.

 

Note: I'm not an insurance professional.  YMMV.

Yes they do have their own homeowners insurance for their main home but they are staying at my place while in town for a while. So I still need to know if THEIR insurance will cover it. I realize mine won't.

@Val24,

 

You said that your insurance company knows that you have tenant.  What does your insurance company understand a tentant to mean.  When I think of tenant, I think of someone long term.  Have you mentioned to your insurance company that you are renting on Airbnb and if they cover short term rentals (STR)?

 

David

Superhost Ambassador ~ Host Club Community Leader ~ Community Expert ~ Experienced Co-Host

Joel61
Level 1
The Villages, FL

My Insurance agent stated that "If my home is rented, my Homeowners coverage will not cover a fire." They say I need to cancel my homeowners policy and purchase a renters policy while the house is being rented. I have asked Airbnb to respond to my question as to whether their Host Guarantee policy would cover that. I have not as yet heard back from them.

I'll save you the trouble of waiting to hear back from them - it wont.

I realize my homeowners doesn't cover it but the question is will THEIR insurance cover it and can I go after their insurance? I think the answer is yes.

If they even HAVE insurance, sure, you can give it a shot.  But like I said, if they are a long-term renter, they are unlikely to have their own homeowners insurance.

Sandra126
Level 10
Daylesford, Australia

You need your own insurance. A normal home insurance is voided if a property is rented.

Scott80
Level 10
Honolulu, HI

How it was explained to me is that if there was a potential claim. You would contact your own insurance and they have investigators determine who should pay. The process is called subrogation.

Helen3
Level 10
Bristol, United Kingdom

You need to have your own insurance that allows you to let to short or long term guests, however your listing is set up. You can't expect to rely on other people's or BNB/

David126
Level 10
Como, CO

Major fires are unusual

 

Major fires where you can show it was caused by a guest are very unusual

 

Major fires where you can show it was caused by a guest and you can recover from the guest are getting into better buying a lottery ticket area.

David
Julia-John0
Level 2
San Francisco, CA

I have State Farm and they don't cover Airbnb guests.  If there is a fire in our condo and spreads to other adjoining condo's --the 1 million $ policy will not cover it.  Does anyone know the name of the insurance company for Airbnb. I haven't seen the listing of what is covered and it's never mentioned fire. -- I need building and my condo covered for guests. Although a fire is rare it is

still possible especially with an earthquake.

Helen3
Level 10
Bristol, United Kingdom

Have you tried speaking to an insurance broker in your area to see who they can recommend.

 

If you use the search function on these forums. Insurance providers have been discussed many times, so I am sure you can find some companies in the US that cover STRs that you could contact.

Kristy43
Level 5
West Moonah, Australia

@Val24 I can only suggest that you get your own insurance specifically for STR's (makes sure that it includes public liability of at least 10 million as well- the 1 mill Airbnb offer under their policy would be nowhere near sufficiant if something catastrophic happened to a guest while staying in your home).  I am no expert but I think it would be next to impossible to go after a guest's personal insurance... best to have your own cover from the get-go.