We live in Dallas, Texas and want to rent out our spare room on Airbnb. What extra insurance do we need?
Starting from October 22, 2015 Airbnb hosts have been covered by the ‘Host Protection Guarantee’. This provides primary (meaning it will cover damages before another insurance policy) liability coverage for up to $1 million for third-party bodily injury or property damage claims. Though this coverage is at no extra cost to the host, it’s important to know that not everything is covered.
Do I still need my Texas homeowners insurance?
Yes. The Host Protection Insurance is a great perk to have but should not be considered a replacement or stand-in for homeowners or renters insurance.
Airbnb writes “The Host Guarantee Program isn't insurance and doesn't replace your homeowners or renters insurance.”
What is covered by the Host Protection Insurance?
If a guest slips and falls on a rug and files a lawsuit against the host, the host should be covered.
If a guest drops a suitcase on another tenant in an apartment building and that tenant files a lawsuit, the host should be covered.
Also in some cases, the Airbnb’s Host Protection insurance will also cover a lawsuit a guest might make against a host’s landlord or property owner. An example of this might be if a guest well using a communal gym and sued the building owner. Host Protection Insurance also covers damage to the physical structure of the home or dwelling itself.
What is not covered?
It does not cover a homeowner's or renter's personal property such as;
- Personal liability
The Host Guarantee does not protect against reasonable wear and tear.
It will not cover accusations of slander or defamation of character, or property issues.
Also it will not cover damage caused by earthquakes, flooding or sinkholes, regardless of whether or not a guest is staying at a property.
Am I covered by my homeowners insurance if I rent out my home for a one-time event?
You may be covered if you're renting your property for a single, special occasion, according to the Insurance Information Institute (III), but different insurers have different requirements.
For example, some may require advance notice, while others might insist you purchase an "endorsement" (an add-on to your homeowners policy) to provide broader coverage for the renter, the III says.
Can I extend my homeowners coverage?
This depends on your insurance provider. To find out more call the Thumann Agency and specifically ask if your policy covers short-term rentals by paying guests, if not you may want to extend your coverage to protect your Texas Home. Liberty Mutual and Allstate are two companies that offer this coverage..
- Liberty Mutual writes “Whether you own a home or a condo, Homesharing coverage extends your current policy when you share your home or condo for more than 31 days of short-term rentals. Basically, for as little as one night's rent this coverage protects you throughout the year, so you can homeshare more and worry less.”
- Allstate writes “As a home-sharing host, you hope renters will treat your space with as much care as you do. Allstate HostAdvantage can help you replace your stuff in case your experience doesn't go as planned. For as little as $50 per year, you can help protect your belongings by adding HostAdvantage to your House & Home policy.”
Start your Texas Homeowners Insurance Quote Here
The Thumann Agency team is here to assist and provide you with a superior level of customer service, if you have question or would like to talk to a business insurance expert, we encourage you to give us a call at (972) 991.9100 In most cases we'll have your insurance quote ready for you the very same day.
Thumann Agency Inc
12770 Coit Road Suite 110 Dallas, TX 75251
Phone: (972) 991-9100 | Fax: (972) 690-1733