Homeowners and Master insurance hosting in a condo - can anyone help?!

[Jeremy134]

Hi everyone - We have been superhosts for the last 1.5 years or so, however our hosting recently came to an abrupt halt when our condo association had some questions about insurance for hosts. As a condo, we have two levels of insurance: every unit owner has individual homeowners insurance, and the condo building as a whole as a single Master insurance plan.

That said, I have been pretty surprised to learn that most insurance companies won't touch or do anything whatsoever to insure you if they know AirBnB guests are staying on site. Our homeowner plan (State Farm) will not cover a thing for liability if there is an issue with a guest, and our master plan (Liberty Mutual) seems agnostic and may not even cover. I have a few questions:

1. Has anyone had luck with ANY insurance companies wanting to cover AirBNB hosts? We have money we'd like to give them.

2. If no insurance companies touch AirBnB homes - a guest falls and breaks an arm, they set the building on fire etc - how in the world does anyone host anyone in the United States and sleep at night? Is it just through the $1M AirBnB policy and that's it?

3. Do hosts have to purchase some kind of business insurance?

I would love some advice or direction on the subject - we'd hate to cease hosting, and my guess is if hosts really knew they lack of support from their insurance companies, they could put AirBnB out of business with concerns about liability.

[Clare0]

@Jeremy134 I have Short Term Rental insurance through Foremost.  Google them.  I have an Entire Home listing and it costs me less than $600 a year. It's a deal. 

[Jeremy134]

Clare - thank you very much, that's definitely an option I want to explore. I'll call them in the morning. Honestly - think about the business model here and how many insurance companies are missing out on a HUGE continually evolving piece of the marketplace. We are literally telling our insurance company "we'd like to give you more money each year if you would simply cover us as part of the exploding sharing economy." And yet their answer is no. It's the most bizarre view of an evolving economic opportunity I've ever seen. 

[Kimberly54]

@Jeremy134,

Great question!

Have a discussion with your primary insurance company.  They have to understand that you are operating your home as a business--other people coming in; not life as usual. They will ask a lot of questions.  PAY ATTENTION.  Once you both agree, do NOT DEVIATE or you will NOT BE COVERED.

They have every right to be informed, and if you are not completely in agreement, in writing, you WILL NOT BE COVERED if something goes wrong. 

AirBnB's insurance is very real, and it is on file with my primary insurance company.

You must get your primary insurance company on board. 

Best, and be covered!

[Aaron185]

@Kimberly54 Airbnb’s help pages say that their host insurance acts as your primary insurance coverage for Airbnb related losses.  What does having your personal homeowners insurance be informed do?  Airbnb doesn’t ask for the same information.  At least they haven’t asked me yet.

[David126]

@Aaron185

The only Insurance AirBnB provide is a little bit of liability, you need to ensure you have your own cover.

[Kimberly54]

@Aaron185, my insurance company, their underwriter, and AirBnB--and I--all had a series of meetings/phone calls/emails.  Everyone, and I mean EVERYONE understands our contract.  

 You are the one who has to start the ball rolling, and make darned sure you have it in writing.

Once everyone understands their place in the liability scheme of things, you are indeed, covered.

Best,

[Kelly499]

Are you part of an HOA? If so can I ask what insurance you use? 

[Randall71]

I saw this post during my exhaustive research on this subject. I am in the process of becoming a host on a Condo in Colorado ski resort town. I’ve heard stories making the news of class action lawsuits against AirBnb for ignoring or denying claims from hosts. Also numerous accounts of insurance policies being cancelled once they found out the property was being used for short-term vacation rentals.

What I have found (for those of us in the USA) is that some insurance companies, such as State Farm insurance, can provide an H06 (H-zero-six) add-on policy for customers that are already policyholders on their primary residence. My primary residence insurance, Progressive underwritten by National General, would not offer such a policy. I also found that those H06 policies had some gaps in coverage between what the HOA’s policy covered and the policy for the unit. One example, a guest catches your condo on fire and it burns down your unit and two others. Your H06 policy covers everything in your unit “drywall and inward.” The HOA covers the damage to the structure. But the liability coverage for the H06 wouldn’t properly cover the “drywall and inward” losses of the other units, which if a fire spread beyond a few units it could cost potentially millions of dollars that you would be liable for.

Ultimately, I went with a policy from Proper Insurance (underwritten by Lloyd’s of London). They’re endorsed by HomeAway/VRBO, and their policies are specifically tailored for this type of commercial activity. The coverage extends to hosts and guests using the property, and doesn’t exclude coverage for when the property is vacant. It covers damage, theft, and loss, regardless of whether intentional or not. Some policies will not cover intentional damage and will not cover theft unless it is a break&enter situation.

Anyway, I thought the premium was very reasonable on a 1bed1bath unit. Approximately $60/month to make me warm and fuzzy.

[Cathy918]

I am an Airbnb host and am having a difficult time finding homeowners insurance that also covers my Airbnb. My Airbnb studio is attached to my home but totally private. I do have one company that said they will insure my home for $3-5,600 per year. That's the expense. My home is a 4/3 if you count the studio and older. Any help or suggestions would be greatly appreciated. I bought the home four years ago and have no insurance on it due to this issue.