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Does My Home Insurance Cover Short-Term Renter Risk?

Companies like Airbnb allow property owners to connect with vacationers and rent their homes and cottages to short-term guests. It has become a very popular alternative to hotels for vacationers and a way for property owners to make some extra money. But what happens when someone is injured at your property when it’s being used by short-term renters?

The answer is a scary one. As the property owner you could get sued. If you don’t have the right insurance coverage, your home insurance will not cover you. We have home insurance to protect us against claims made by people who suffer injuries at our homes. We pay insurance premiums so that if we are ever sued we don’t have to pay for a lawyer or pay the claim ourselves. But if you don’t have the right coverage, the insurance company won’t pay for anything.

Your homeowners policy might not cover you for claims made when you are renting out your home to short-term renters. Insurance companies offer this coverage but it is not on all policies.

If you are going to rent your home out, it is crucial that you talk to your insurance broker or insurance company to ensure that you have the right coverage. If you don’t, it could cost you thousands of dollars or more.