Homeowners Insurance

Nancy3
Level 1
Portland, OR

Homeowners Insurance

I understood that I should notify my insurance company when I began to list a room in my home through Airbnb. I have just been notified by The Hartford that my homeowners policy has been cancelled because I am now operating as a small business through Airbnb. Apparently The Hartford is not interested that liability is protected through Airbnb's Host Protection program. Has anyone had a similar experience? What did you learn from that experience? Any suggestions on how I can continue to list my room without losing my homeowners insurance?  

30 Replies 30
Allison2
Level 10
Traverse City, MI

There are some insurance carriers (such as CBIZ) that fill this market niche, without running into the costly commercial policies. The quote they gave me was just a little higher than my traditional home insurance.

 

Also, have you purchased additional coverage through the Host Protection insurance through Airbnb, or are you referring to the Host Guarantee? The two programs are very different in how comprehensively they cover you! (https://www.airbnb.com/help/article/938/what-s-the-difference-between-host-protection-insurance-and-...

Thanks Allison - this is helpful. I didn't realize that I could purchase additional coverage. I'll look into that! Again, thx! 

From what I am reading, this appears to be "included" not an extra cost. I am curious if you found an insurance company to cover you? what I am finding is once they find out you are doing an airbnb, they don't want to cover you. 

 

Any update appreciated!

 

Vicki

Robin4
Level 10
Mount Barker, Australia

@Vicki3   Hi there Vicki.... This is a paste of a post I have done a few times before on the forum but we are seeing this question of insurance cropping up again and again so....here it is again!

A lot of posts have given graphic details of the problems associated with trying to avail yourself of this umbrella insurance cover that Airbnb offers. The reality of it is, YOU SHOULD ASSUME THIS COVER DOES NOT EXIST! A damage deposit is possibly a prudent thing to include in your listing details for the odd broken or 'mis-placed' item, but we are now seeing reports of some guests facing bills of thousands of dollars for damage to major fittings that they thought would be covered by with this 'warm and fuzzy' Airbnb protection cover. The terms and conditions of the Airbnb cover have been so cleverly crafted, that, realistically it covers you for three quarters of nine tenths of bugger all.....forget about it, it's a marketing tool!!

In Australia we have an insurer who is part of the largest insurance group in Australia who specialises in the Airbnb and Stayz platforms. You insure only for the times you have guests, and the insurance only covers 'events' that guests are likely to create.

  

It DOES cover building damage including removal, theft, contents damage, both accidental and malitious and has a $10 million au liability cover, but does NOT cover storms, tornados, earthquakes, floods and other acts of God. It also does not cover external rental properties (there are others in that landlord/ tennant market) it purely covers shared property short term rental agreements.

Now, where the difficulty comes in, this does not replace your existing household insurance it is an adjunct to it that purely covers damage that guests may do whilst on your property so, this cover has to sit comfortably with your general household insurance.....and by the sound of it that certainly won't happen with your current insurer!!! But I am sure the Insurance Council in your country would suggest insurers who do work to this arrangement.....It happens here in Australia, and I am certain we are not an island in the intergalactic void of Insurance.

Cover is available immediately on-line and premiums are for individual guests. The whole policy structure has been based around the short term shared accommodation market. I have guests in my cottage for 4 days at present. I set the insurnace in place the day they arrived and am covered until midday the day they leave, I received a specific policy document in PDF form immediately and that cover cost me the princely sum of $15.30 for the 4 days.

Vicki, Nancy and others, search out for this, I suggest you do what I did and get onto your Insurance Council. It is so worthwhile for you peace of mind....And forget about the Airbnb potection cover! That's just a cleverly crafted marketing tool!....Cheers.....Rob

 

Great Robin, I am just attempting to get cover over and above my normal home & contents. I am about to do that through one of the companies in Aussie that cover for the days occupied by guests of Airbnb.        Julie.......Bunbury WA

Hi Robyn.  What is the name of the company that offers this "part-time" short stay insurance?  Thanks.

I am having issues with insurance and as far as I can gather it is an issue from the point of view that the home owners policy is void if you have a bnb as they consider this an added risk. If you end up with a claim your insurer could deny the claim for improper disclosure.  Send them a letter stating what you are doing and see what they say in writing. If they accept the risk then no problem, if they write back cancelling your insurance you then know what would have happened with a claim. I will add more as I figure the issue out but just getting extra insurance may not be the answer if you lost your primary insurer upon making a claim.

To my surprise, I was just cancelled by my homeowners insurance policy as well.  As suggested by airbnb, I called the insurance provider to ensure I was covered.  They stated that I was, but then a few months later cancelled my policy (this is through Travelers Insurance). Geico is the agent so I called them to see if they had any alternatives for me.  They don't!  Not even through their specialty department.  None of their providers want to take the risk.

 

After doing some research online, I found out about a business policy that would provide the appropriate coverage and replace my homeowners insurance as well.  The cost is only a few hundred dollars a year more so that's great.  BUT, the big downside is 1) any workers on your property must have workmans' comp policies of their own as they will  not cover any injuries that may happen to your housekeeper, lawn care provider, or any other worker on your "business premises".  2) They do not provide coverage when guests rent a room from you rather than the entire house.  I do both so this is a problem.  

 

Any advice would be appreciated.  I'm not sure what I can do here.

What company did you find that offered that business policy?

Jenna and all other hosts-  I am an experienced provider of homeowners insurance for Airbnb hosts. I have coverage available in all states.  Please contact me if you would like to review your insurance.  Sean F Murphy Insurance Agency, Worth IL 60482

Pat18
Level 2
Pittsburgh, PA

YES! MetLife just sent us official notice that they are cancelling our homeowners insurance effective June 21st because we called and asked about Air BNB, though we told them we were just inquiring about coverage!

 

We are desperately looking for homeowners insurance. All State, Chubb and Farmers have all refused to cover us if we persist in Air BnB

We are in Pennsylvania... I think Farmers is covering people in California.

 

Pat 

I have just gotten a cancellation notice from AAA after I only called to inquire. It looks like I'm just not going to be able to Airbnb anymore. I guess I'll take my listings down. Has anything come up for anybody?

I'm in the same boat. There are thousands of "shared space" listings on AirBnb. Are none of them insured?! I'm so confused.

Pat- I hope you have solved your Airbnb insurance crisis.  Please feel free to contact me if you are still in need of assistance or if you would like to review your current plan.  Sean F Murphy Insurance Agency, Worth, IL 708 361 9430