Standard homeowners insurance does not cover Airbnb rentals
Most homeowners insurance policies exclude income from renting out your home, including short-term rentals through Airbnb. Your insurer will not pay for damage, theft, or liability claims that happen while guests are staying in your home under a rental arrangement. If you list your home on Airbnb without telling your insurer, a claim related to the rental could be denied — even if the damage itself would normally be covered.
The reason is straightforward: standard homeowners policies are written for owner-occupied homes. They assume you live there full-time and that occasional guests are personal visitors, not paying customers. The moment your home becomes a rental business, the risk profile changes. Your insurer sees higher foot traffic, more strangers in the home, and commercial activity — all things that shift the cost of coverage.
Telling your insurer after a claim happens will not help. You need to disclose the Airbnb rental before you list the property, so your insurer can either exclude it from coverage, decline to renew your policy, or offer you a different type of policy that does cover it.
Key Takeaways
- Standard homeowners insurance excludes short-term rental income and will deny claims tied to Airbnb guests, even for damage that would normally be covered.
- You must tell your insurer about the Airbnb rental before you list the property; disclosing it after a claim will not protect you.
- Your options are a standard policy with a short-term rental endorsement, a separate Airbnb insurance policy, or switching to an insurer that specializes in rental properties.
- Airbnb's Host Protection Insurance covers some guest damage and liability but has limits and exclusions that leave gaps your own policy should fill.
- The cost of adding rental coverage to your homeowners policy is usually less than buying a separate policy, but prices vary by insurer and how many days per year you rent.
What your homeowners policy actually covers when you rent on Airbnb
If you rent your home on Airbnb without modifying your insurance, your homeowners policy covers nothing related to the rental. That includes damage caused by guests, theft by guests, injuries to guests, and liability claims from guests. The policy will also not cover damage to your personal belongings if it happens during a rental period, because the insurer will view the claim as tied to commercial activity.
The one exception is structural damage to the building itself from a covered peril — fire, lightning, wind — that happens to occur while guests are there. But even then, your insurer may deny the claim if they discover you were renting and had not disclosed it. The safer assumption is that nothing is covered once you start taking Airbnb bookings.
Airbnb's Host Protection Insurance is separate from your homeowners policy and covers some of these gaps, but it is not a replacement. It typically covers guest damage up to a certain limit (often $1 million for liability, $100,000 for property damage) and only if the claim meets Airbnb's specific conditions. It does not cover your own belongings, loss of income if you have to cancel bookings, or damage from a guest's pet.
Adding a short-term rental endorsement to your homeowners policy
Many insurers will add a short-term rental endorsement to your existing homeowners policy for an additional premium. This is usually the cheapest option if your current insurer offers it. The endorsement extends coverage to guest-related claims — damage caused by guests, liability if a guest is injured — and typically costs between $25 and $75 per month, though this varies by insurer, location, and how many days per year you rent.
To get an endorsement, contact your insurance agent and tell them you plan to rent on Airbnb. They will ask how many days per year you intend to rent, whether you will rent the entire home or just a room, and whether you will be present during rentals. Some insurers will not add an endorsement if you rent more than a certain number of days per year (often 180 days) or if you rent the whole home while you are away.
The endorsement does not cover loss of income if a guest cancels, damage from a guest's pet, or theft of your belongings by a guest. Read the endorsement document carefully to see what is and is not included. If the gaps are large, a separate Airbnb insurance policy may be worth the extra cost.
Buying a separate Airbnb insurance policy
If your insurer does not offer an endorsement, or if the endorsement does not cover what you need, you can buy a standalone short-term rental policy from an insurer that specializes in Airbnb hosts. Companies like Proper Insurance, Stride Health, and Jetty offer policies designed specifically for short-term rentals. These policies typically cover guest damage, liability, loss of income if you have to cancel bookings, and sometimes damage from a guest's pet.
A standalone policy usually costs more than an endorsement — often $50 to $150 per month — but it covers more. You will still need your standard homeowners policy for structural damage and other owner-related claims. The standalone policy sits on top of it and fills the gaps that homeowners insurance leaves.
When shopping for a standalone policy, compare what each one covers and what it excludes. Some policies have high deductibles or low limits on certain types of damage. Ask whether the policy covers damage from guests' pets, whether it covers your belongings or only the structure, and whether it covers loss of income if you have to close your listing due to damage.
Switching to an insurer that covers short-term rentals
A few insurers will write a homeowners policy that includes short-term rental coverage from the start, without requiring an endorsement. These are less common than traditional insurers, but they exist. If you plan to rent on Airbnb long-term, switching to one of these insurers may be simpler than juggling multiple policies.
The trade-off is that these policies may cost more than a traditional homeowners policy plus an endorsement, or they may have higher deductibles. Get quotes from a few insurers before you decide. Some will also require you to meet certain standards — like having a lock on the guest bedroom, or keeping the home in good repair — to keep the policy active.
If you already have a homeowners policy with another insurer, switching will mean canceling that policy and starting fresh. Make sure your new policy is in place before you cancel the old one, so you are never without coverage.
What Airbnb's Host Protection Insurance covers and does not cover
Airbnb provides Host Protection Insurance to all hosts at no extra cost. It covers liability claims from guests (up to $1 million in most places) and damage to your home caused by guests (up to $100,000). But it has strict conditions and exclusions that leave significant gaps.
The liability coverage applies only if a guest is injured in your home and sues you. It does not cover damage to the guest's belongings, damage to your own belongings, or claims from neighbors. The property damage coverage applies only to structural damage and built-in items like appliances and flooring — not to your furniture, electronics, or other personal property. It also does not cover damage from a guest's pet, damage from normal wear and tear, or damage you could have prevented with reasonable care.
Airbnb's coverage is a safety net, not a complete solution. You should not rely on it as your only insurance. Your own homeowners policy — either with an endorsement or a standalone rental policy — should be your primary coverage, and Airbnb's protection should be the backup.
How to disclose your Airbnb rental to your insurer
Contact your insurance agent or your insurer's customer service line and tell them you plan to rent your home on Airbnb. Have the following information ready: how many days per year you plan to rent, whether you will rent the entire home or just a room, whether you will be present during rentals, and the nightly rate you plan to charge.
Your insurer will either offer you an endorsement, decline to cover the rental, or decline to renew your policy. If they decline, you will need to find a different insurer or buy a standalone rental policy. Do this before you list your home on Airbnb, not after a claim happens.
If you already have an active Airbnb listing and have not told your insurer, contact them as soon as possible. Continuing to rent without disclosure is insurance fraud, and it will void your coverage if a claim is made. The sooner you disclose, the sooner you can get proper coverage in place.
Frequently Asked Questions
Will my homeowners insurance cover a guest who is injured in my home?
No, not if you are renting on Airbnb without telling your insurer. Your homeowners policy excludes liability claims tied to rental activity. Airbnb's Host Protection Insurance covers some guest injuries, but only up to $1 million and only if the claim meets Airbnb's conditions. You should add an endorsement or buy a standalone policy to fill this gap.
What happens if I don't tell my insurer about Airbnb and a guest damages my home?
Your insurer can deny the claim entirely if they discover you were renting without disclosure. They may also cancel your policy or decline to renew it. If the damage is large, you will have to pay for repairs out of pocket. Disclosure before you list is the only way to protect yourself.
Is Airbnb's Host Protection Insurance enough?
No. It covers some guest damage and liability, but it excludes damage to your belongings, damage from pets, and claims from neighbors. It is a backup, not a primary policy. You need your own homeowners coverage with a rental endorsement or a standalone rental policy.
How much does it cost to add Airbnb coverage to my homeowners policy?
An endorsement usually costs $25 to $75 per month. A standalone rental policy costs $50 to $150 per month. Prices vary by insurer, location, and how many days per year you rent. Get quotes from a few insurers to compare.
Can I rent my home on Airbnb if my insurer will not cover it?
You can, but you will be uninsured for guest-related claims. You can buy a standalone rental policy from a different insurer to cover the gaps. Do not rent without some form of coverage in place.