AirBnB in New York.

More and more homeowner’s are using their homes as an Airbnb to make addition income, especially when not in use, like on vacation. But I have to forewarn you that there could be many exclusions in your homeowner policy.

A guest (invited) causes damage to your home, probably not covered. Or how about your guest missing items (whether lost or mis-placed) also not covered by homeowners insurance. And many insurance companies would consider your rented bedroom as “business property” now, thus denying any property damage claim.

AirBnB in New York.

Many insurance companies also exclude business activity for a home-based business, which this is. So that slip and fall they had inside your home, could be considered a business liability, thus excluded. You need to find insurance companies that either have a home-based business endorsement to add to a homeowner or buy a in-home business policy.


Airbnb does offer “host liability protection” but doesn’t name the owner as a named insured, must be reported within 10 days of claim and must try to get reimbursement from the guest. It does offer $1,000,000 of liability coverage but not easily collected.

AirBnB in New York.

Final thought – don’t just assume because you have a homeowner insurance policy you are covered – there will be a lot of EXCLUSIONS when using your home to make money. Your home now becomes like a small business, which isn’t what a homeowner insurance policy is designed for.

Always be a pro-active insurance consumer and know what the risks are before you start using your home as an Airbnb. There are risks and as long as those are addressed, making extra money should be great for you.

Tom Larsen, Licensed Insurance Broker

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