Does Homeowners Insurance Cover Airbnb Rentals of Your Home?
Here's what you should know about home-sharing and your policy
Standard homeowners insurance provides only limited coverage when you rent your home through Airbnb or similar platforms. Most policies are designed to cover you as the owner-occupant, not as a host running a short-term rental business. That means once guests are paying to stay in your home, some of your usual protections get complicated, and others stop applying altogether.
Here’s what your homeowners policy actually covers, where it falls short, and what your options are.
TL;DR
- Standard homeowners insurance isn’t built for short-term rentals. Renting through Airbnb or Vrbo can limit or void key coverage areas.
- Damage from a covered peril like fire is generally still covered, but damage to a guest’s belongings is not.
- Personal liability coverage typically doesn’t apply if a guest gets injured or causes damage to a neighbor’s property.
- Airbnb’s AirCover for Hosts covers up to $1 million in liability and $1 million in property damage.
- Lemonade doesn’t cover homes rented out more than seven days per year, but does offer landlord insurance in select states from $25 per month.
Why homeowners insurance policies limit coverage for home-sharing?
A standard homeowners insurance policy isn’t designed for home shares. Instead, it’s meant to protect you, the owner of the home, along with anyone else named on your policy. (In case you need it, here’s a refresher on what homeowners insurance covers.)
That means your insurance company will generally exclude things like damage to the property of tenants who rent out your home. However, you’re still generally covered for damage to your personal property or the structure of your home.
If you plan on renting out your pad through a home-share platform like Airbnb, you’ll want to check the specifics of your individual homeowners insurance policy, as not all policies are created alike. With that in mind, let’s take a closer look at some scenarios you might confront as a home-share host.
What home-share hosts should know about property damage
As you might remember, homeowners insurance covers damage to your personal property caused by named perils like fires, lightning, windstorms, hail, vandalism, and theft.
So if a home-share guest accidentally starts a kitchen fire, your insurance company will typically still cover you for resulting damages (but again, not for any property belonging to your guest).
Personal liability and home shares
Just as your homeowners insurance policy’s personal property coverage generally won’t be able to help out with damage to your property, your personal liability protection is also limited as a house-share host.
Personal liability coverage covers a few common scenarios, including if someone is injured on your property and you’re responsible; you accidentally damage someone else’s dwelling or personal property; or you (or one of your furry friends) cause damage to someone else.
If your Airbnb guest slips and falls on the steps to your porch, you typically won’t be covered for personal liability. What about a guest working on their baseball swing in your backyard, only to shatter your neighbor’s window? Again, your homeowners insurance policy generally won’t cover you.
However, your liability coverage’s business exclusion does allow for the occasional use of your property as a rental less than seven days a year, so there are some circumstances in which you could be covered for liability. Check with your insurance company about the specifics of your policy and which exclusions apply.
What are home-sharing insurance options?
While your homeowners insurance won’t kick in for all home-sharing nightmares, you still have plenty of options for host protection insurance.
Airbnb and other home-share companies offer their own short-term home sharing coverage, which you should definitely look into if you plan on renting your place out. Airbnb’s AirCover for Hosts, for example, provides up to $1 million in liability insurance and $1 million in damage protection, along with protection for pet damage and lost income if you’re unable to rent your place out due to damage.
Because homeowners insurance is meant to cover primary residences occupied by the owner, Lemonade won’t provide insurance coverage for homes rented out more than seven days per year. This is considered business activity, which isn’t eligible for homeowners insurance protection and requires separate business insurance.
And while Lemonade’s homeowners insurance generally won’t cover property rentals, we do offer landlord insurance to owners of condos and apartments in CA, NY, IL, TX, PA, DC, and NJ, starting at $25 per month.
Whether it’s your primary residence or a second home that you mostly rent out on Airbnb, a home is a precious investment, and you’ll want to make sure that you’re equipped with the proper insurance coverage to protect it.
No matter what type of coverage you need-whether you’re seeking a landlord policy or looking to protect your primary home-you need coverage that’s easy to understand, reliable, and customizable. That’s exactly what Lemonade offers our customers-and getting a quote takes just a couple of minutes.
Airbnb rentals insurance FAQs
Does homeowners insurance cover damage caused by an Airbnb guest?
It depends on what caused the damage. If a guest accidentally starts a fire, your homeowners policy would generally cover the structural damage since fire is a covered peril. But if a guest breaks your furniture or damages your personal belongings directly, your homeowners policy may not cover it. That’s a gap best filled by Airbnb’s AirCover for Hosts or a dedicated short-term rental policy.
What happens if an Airbnb guest gets injured in my home?
In most cases, your homeowners insurance personal liability coverage won’t apply. Most policies include a business exclusion that kicks in when your home is being used as a rental. Airbnb’s AirCover for Hosts includes up to $1 million in liability coverage specifically designed for this scenario, which is why relying solely on your homeowners policy as a host is risky.
How many days can I rent my home before homeowners insurance stops covering me?
Most homeowners insurance policies, including Lemonade’s, allow occasional rental use of up to seven days per year before the business exclusion applies. Beyond that threshold, your home is considered a rental property and standard homeowners coverage no longer applies. You’d need a short-term rental policy or landlord insurance instead.
Does Lemonade cover Airbnb rentals?
Not under a standard homeowners policy. Lemonade’s homeowners insurance is designed for primary residences occupied by the owner. Homes rented out more than seven days per year are considered business activity and aren’t eligible for homeowners coverage.
Do I need separate insurance if I only rent my home occasionally?
If you rent your home fewer than seven days a year, your homeowners policy may still cover you for some scenarios. But even occasional hosts face real liability and property risks that a standard policy isn’t built for. At minimum, make sure Airbnb’s AirCover for Hosts is active on your listing. If you rent more frequently, talk to your insurer about a short-term rental endorsement or a dedicated host protection policy.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of the policies issued, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states. Please note that statements about coverages, policy management, claims processes, Giveback, and customer support apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company, sold by Lemonade Insurance Agency, LLC. The statements do not apply to policies underwritten by other carriers.
Share
