Home Insurance for Airbnb Properties

​​If you are a homeowner in Tennessee who is considering renting out your property on Airbnb, you may be wondering what kind of insurance coverage you need. As a host, you are responsible for any accidents or damages that may occur on your property while it is being rented out. This can put you at risk if you don't have adequate insurance coverage. In this article, we will explore the different types of insurance coverage that Airbnb offers, as well as other options that may be available to you through Farm Bureau Insurance of Tennessee.

What is Airbnb?

Airbnb is an online platform that allows people to rent out their homes or apartments to travelers for short-term stays. Since its inception in 2008, Airbnb has become a popular alternative to traditional homes and resorts. According to its website, Airbnb has more than six million rentals available in 100,000 cities and 220+ countries.

Risks that come with being an Airbnb host

Opening up your home to Airbnb guests can be a great way to earn extra income, but it’s important to be aware of the risks that come with hosting. You hope that guests will treat your home with the same care and respect that you do, but sometimes that doesn’t always happen. Some of the more common risks include:

• Vandalism: Unfortunately, some guests may intentionally damage your property, whether from throwing a party or other actions.
• Theft: While most guests are honest, it’s possible that some may steal items from your home, ranging from small items to larger ones like electronics or artwork.
• Noise Complaints: If your guests are too loud or disruptive, it could lead to complaints from your neighbors, which may impact your relationship with them and potentially result in fines or legal action.
• Unpaid Rental Fees: Although Airbnb does offer some protection, it’s possible that a guest won’t show up or won’t pay for their stay, which can be stressful.
• Injured Guests: accidents happen, and if a guest is injured while staying on your property, you could be held liable.
• Property Damage: Whether it’s accidental or intentional, rental damage can be costly, so make sure you’re protected.
• Illegal Activities: Guests may engage in illegal activities on your property, such as drug use or hosting unauthorized parties.
• Unauthorized Occupants: Guests may try to bring additional people or pets onto your property without your knowledge or permission.

Does Airbnb offer any insurance coverage for hosts?

Airbnb does offer some insurance coverage for hosts, but it is important to understand the limitations of this coverage. There are two main types of coverage that Airbnb offers: Host Liability Coverage and Host Damage Protection.

1. Host Liability Coverage & Exclusions

   Airbnb’s Host Liability Coverage is designed to provide protection to hosts for certain types of damages or injuries that may occur during a guest’s stay. This coverage provides up to $1 million in liability coverage per occurrence.

   However, it is important to note that there are some exclusions to this coverage. Here are a few examples:

   • Intentional acts: If a guest intentionally causes harm to themselves or others, such as getting into a fight or stealing, Airbnb’s liability coverage may not apply. The coverage is designed to protect hosts from accidents and unintended incidents, not intentional misconduct.
   • Acts of nature: If a guest is injured due to a natural disaster, like an earthquake, flood, or hurricane, Airbnb’s liability coverage may not cover the damages. These events are considered beyond the host’s control, and a separate insurance policy may be needed to protect against such risks.
   • Electronic data: if you experience damage to, or loss of electronic data such as files, documents, or other digital information, Airbnb’s coverage would not cover the costs or consequences associated with recovering or replacing the data.
   • Fungi or bacteria: if someone gets sick or property is damaged due to the presence of fungi or bacteria within the property, Airbnb’s liability coverage would not cover the resulting medical expenses nor the cost of repairs, restoration, or replacement of property.
   • Non-covered locations: The coverage may not apply to certain areas or parts of your property that are not included in the rental listing.
   • Damage or loss of property: To protect against property damage caused by guests, you may consider utilizing Airbnb’s Host Damage Protection.

2. Host Damage Protection & Exclusions

   Airbnb’s Host Damage Protection is designed to protect hosts in case their property is damaged by a guest during their stay. This coverage provides up to $3 million in coverage for damage to your property, including theft, vandalism, and accidental damage.

   However, there are some exclusions to this coverage as well. Here are some examples:

   • Damage from normal wear and tear
   • Loss of currency
   • Acts of nature, such as earthquakes or hurricanes
   • Injury or property damage to guests or others
   • Vehicles
   • Animals

Should Airbnb hosts get additional coverage through Farm Bureau Insurance of Tennessee?

While Airbnb's insurance coverage can provide some protection for hosts, it may not be enough to cover all potential risks. If you are a host on Airbnb, it may be a good idea to consider getting additional insurance coverage to protect yourself and your property. When considering additional insurance coverage through Farm Bureau Insurance of Tennessee (FBITN) as an Airbnb host, there are a few key types of coverage you should consider:

1. Liability Insurance: Our liability insurance can provide additional coverage for you in case a guest or third party gets injured on your property or if you unintentionally cause damage to someone else's property. It can help cover medical expenses, legal costs, and potential settlements or judgments if you're found liable for the injuries or damages.
2. Homeowners Insurance: Homeowners insurance can provide additional coverage for damage to your property, such as damage caused by fires, storms, or vandalism. It can help cover the repair or replacement costs if your property or personal items are damaged or stolen.
3. Umbrella Insurance: An umbrella policy provides extra liability coverage that goes beyond the limits of your primary liability coverage. It can offer increased protection in case of significant claims or lawsuits against you as a host.

These coverage options can help fill the gaps left by Airbnb's protection programs and provide broader protection for your property, belongings, and potential liability as a host. It's essential to discuss your specific needs and situation with your local Farm Bureau agent. Our friendly agents can guide you in selecting the right coverage options that meet your requirements as an Airbnb host in Tennessee.

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Start your free homeowners insurance quote from Farm Bureau Insurance of Tennessee or find your local agent to discuss insurance policy options that fit your needs.