Does Homeowners Insurance Cover Airbnbs?

A standard homeowners insurance policy does not automatically cover Airbnb rentals in the U.S. For homeowners listing their property on Airbnb, understanding insurance nuances is crucial to avoiding costly surprises. This guide explores how coverage works, relevant statistics, insurance solutions, and practical advice for hosts.

What Is Home Insurance for Airbnb?

When using a home for short-term rental via Airbnb, insurance coverage needs change. While most U.S. homeowners insurance policies protect against events like fire, theft, and liability related to owner-occupancy, they generally exclude claims if the home is used for rental or business activities. Hosting guests introduces additional risks—from property damage to injury—that many insurers will not cover under a basic homeowners policy.

Why Standard Homeowners Insurance Is Limited

Policies are issued under the assumption that the home is occupied by the owner—not used for commercial purposes. If a claim is made for an incident that occurs while a guest is staying through Airbnb, insurers frequently deny coverage due to “business activity exclusion.” For instance, damage like a kitchen fire caused by an Airbnb guest may not be covered, leaving the homeowner to cover the loss out of pocket.

Airbnb’s AirCover: What Does It Provide?

Airbnb AirCover automatically protects hosts with up to $3 million in damage protection and $1 million in liability coverage for most listings. This coverage includes:

• Property damage by guests, including pet damage and deep cleaning costs.
• Bodily injury or property damage claims by guests or others.
• Loss of income for canceled bookings due to guest-caused damage.

However, Airbnb AirCover is not a substitute for a robust insurance policy, as it has exclusions—such as wear and tear, natural events, and some intentional acts by guests.

U.S. Airbnb Statistics (2025)

• Over 7 million Airbnb global listings; the U.S. hosts earn $14,000 on average annually.
• Total U.S. Airbnb revenue annually exceeds $11 billion, making it the top country for hosts.
• Over $250 billion have been earned by hosts globally since Airbnb’s inception.
• 60% of hosts rent out their primary residence when traveling.
• Some cities like New York, Los Angeles, and Miami lead in listings and rental incomes.

Find a detailed breakdown and more statistics.
Reference: Insuranceopedia Airbnb Statistics

Home Insurance Solutions for Airbnb Hosts

To ensure adequate protection, hosts should:

• Disclose rental activity to their insurer; nondisclosure can result in claims denial or policy cancellation.
• Seek home insurance with short-term rental endorsements or specialized “landlord” or “business” insurance for regular Airbnb use.
• Review and supplement Airbnb’s AirCover with policies covering gaps (e.g., lost income, liability, or damage types excluded by AirCover).

Local Regulations Affect Coverage

Many U.S. cities enforce short-term rental laws, such as registration, rental caps, or primary residence requirements, which may affect insurance eligibility and claims. Always check local regulations before listing and consult with your insurer.

Recommendations for Amistad Insurance Customers

If you plan to rent your property on Airbnb:

• Consult Amistad Insurance for custom coverage recommendations and rental-specific policies.
• Inform your agent about your rental plans—transparency ensures the right protection.
• Consider additional coverage options tailored for short-term rental risks and local compliance.

Contact Amistad Insurance today for a personalized quote or expert guidance on home insurance for Airbnb hosts. For more details, industry data, or a free home insurance review, visit Amistad Insurance’s website or speak to an agent in English, Spanish, or Spanglish. Protect your property and income, with the right coverage for every hosting scenario.

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