You may also be concerned about theft by a guest or any damage they may cause in your abode, none of which you'd want to pay for out of pocket. Hosts are covered by an Airbnb policy, but it's not comprehensive and those gaps could leave you exposed to a claim or lawsuit if the loss to the guest is severe enough.
Airbnb's insurance plan
Airbnb carries something called Host Protection Insurance, which all hosts are covered with at no charge. The plan will cover up to $1 million of liability for you and your landlord (if you have one) against property and physical damage claims by third parties.
For example, if one of your guests falls down the stairs because of an obstruction and they file a lawsuit against you, the insurance could cover the cost of defending and also paying out an award.
Similarly, if one of your guests injures another guest or a tenant in the apartment building you live in, Airbnb's insurance would also cover that.
And if your puppy gets into the guest's room and devours a $200 pair of shoes and some $300 headphones, Airbnb's policy would also kick in.
What's not covered by Airbnb
• Damage to personal property like furniture, stereo equipment, your prized china set, etc.
• Theft of your valuables.
• Sickened guest due to issues at the property, like mold.
• Slander and defamation. Both can be grounds for a lawsuit and if a guest sues a host for either one, the host will not be able to file a claim through Airbnb.
• Harm caused by intentional criminal acts. This is actually excluded on any insurance policy, even homeowner's or renter's coverage.
Do you have a coverage gap?
Your insurance company may deny coverage by citing business use of a home. When a home is rented out frequently, it could be considered a business. A home insurance policy does not cover regular business activities taking place in the home. Talk to an agent to discuss renting basics, renting frequency and what will happen if a guest is injured based on a current policy.