Renting On Airbnb? What About Insurance?

You’ve probably heard of Airbnb. It’s a fairly new startup that has exploded in recent months. It basically connects renters that are looking for cheaper housing and those that have free space. It’s an alternative to hotels for travelers and has been very popular all around the world. There are few things that could go wrong in the early days as both renters and hosts loved the new service.

Then Things Went Bad

In July 2011, a host contacted Airbnb after having her apartment burglarized and vandalized by an Airbnb guest. The company initially said there was nothing it could do which quickly turned into a public relations nightmare. Why would anyone use this service if there is so much risk involved? The company thankfully came back on its decision and ended up not only helping the victim but also changing its entire policy for users.

Airbnb Insurance Policy

Any host that is renting out its home is insured for up to $900,000 (or the equivalent depending on the specific country). Of course, it’s still important to look at what is covered and what isn’t but also the exact terms of service that are fairly easy to understand on Airbnb’s website.

Don’t Forget About Your Own Insurance Policy

It is likely that hosts have their own insurance policy and while you might not need insurance for anything that happens when you’re renting the room, I would say that it remains very important to confirm the impact on your main house insurance. Why? Because renting it out could (in some cases) make that policy invalid which would of course be a big problem if something else did end up happening

Be Honest And Careful With Your Insurance Company

It’s always a good idea to be transparent and ask questions when you are unsure about your insurance policy. You never want to be in a situation where a claim is refused because you did not respect what you signed up for…

Are any of you users of Airbnb? If so, did you talk to your insurance company?

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