So, you’ve decided to turn that spare bedroom or your cozy weekend cottage into an Airbnb. High five! It’s a great way to meet new people and, let’s be honest, that extra cash flow feels pretty good. But before you hand over the keys to your first guest, there is something we need to talk about: The Insurance Gaps You Need to Know When Renting Out Your Home on Airbnb.
Most hosts assume that their standard homeowners policy or Airbnb’s built-in "AirCover" has them totally protected. The reality? Some massive holes in that safety net could leave you paying out of pocket for a guest's mishap.
At Majdas Touch Insurance, we want you to enjoy the perks of hosting without the "oh no" moments. Let’s dive into the gaps you need to watch out for.
Here is the big secret: Most standard homeowners' insurance policies have a "business activity" exclusion. The second you accept money for someone to stay in your home, your insurance company views your house as a business, not just a residence.
If a guest accidentally starts a kitchen fire, your insurance company might deny the claim entirely because the damage happened during a "commercial use" of the property. To stay safe, you often need a specific endorsement or a dedicated short-term rental policy. You can find the perfect fit for your setup at Majdas Touch Insurance.
Airbnb provides something called AirCover, which offers damage protection and liability. While it’s a great "extra" perk, Airbnb explicitly states in its fine print that it is not a substitute for personal insurance.
Why AirCover falls short:
Imagine a guest trips on a loose rug and breaks their ankle. In a normal world, your liability coverage would kick in. But again, because this happened during a paid stay, your standard policy might back away.
While Airbnb offers $1 million in liability, legal fees and medical bills can skyrocket past that faster than you’d think. Having your own professional-grade liability through Majdas Touch Insurance ensures you have a primary layer of protection that belongs to you, not the platform.
If your rental property is damaged by a guest and you can’t rent it out for two months while it’s being repaired, you aren't just losing the repair money, you're losing your income. Most standard policies won't reimburse you for that "lost" rental money. A specialized policy from Majdas Touch Insurance can help keep your bank account steady even when your doors are closed.
Your home is likely your biggest asset. Don't let a weekend guest turn it into a financial nightmare. Whether you host once a year or every single weekend, you deserve a policy that actually has your back.
Ready to close those gaps? Click here to get a custom quote from Majdas Touch Insurance today!
Usually, no. Most policies exclude "short-term rentals" or "business activities." If you don't tell your agent you're hosting, you risk having your entire policy canceled.
Think of AirCover as a "safety net with holes." It’s better than nothing, but it doesn't cover everything (like theft of personal items or damage outside of a booking window) and it isn't a legal insurance policy.
It’s a specific type of coverage designed for hosts. It fills the gaps by covering the structure, your belongings, and liability specifically for when guests are present.
The best way to bridge these gaps is to work with an expert. The team at Majdas Touch Insurance specializes in finding policies that let you host with total peace of mind.
For more deep dives into the world of short-term rental risks and protection, check out these top-rated resources:
