Airbnb Insurance Question

[Tyler Horton]

So I've been told if I really want to be able to put my unit up on Airbnb there's a special type of insurance I'll need. Can someone confirm this? I've had a tough time going through their site on this.

[James Carlson]

@Tyler Horton Good for you for asking about this. Insurance is one of the most important aspects of starting up a short-term rental, and it's one of the most overlooked issues.

In my experience, it's almost a sure bet that your normal insurance carrier will NOT cover you for any claim arising out of an Airbnb-style short-term rental. I've heard of riders and other commercial policies you can get from normal carriers, but I'd steer clear. 

Go with a policy that is tailored to this type of rental. I know Proper Insurance has some great policies, and unlike others they will cover just a room rental and not just a whole-house rental. Slice is another good one, a start-up out of New York that offers on-demand insurance that covers you only if you're hosting. These companies have coverage areas that aren't in normal policies. 

You could opt for Airbnb's coverage, and I know people like @Ariel Smith have had good experiences with it. But in my Airbnb seminars here in Denver I've also heard from hosts who weren't covered for some basic things, like bed bug remediation. 

The takeaway I also tell people is don't rely on your normal coverage and don't stick your head in the sand and hope. If you're going to run an Airbnb, get the right coverage for peace of mind.