Airbnb & nightmare guests, are you properly insured?


The Airbnb phenomenon is a unique and inexpensive alternative to the standard motel/hotel experience for travelers and a way to gain income from an unused bedroom for homeowners. It seems to be a match made in heaven, but what happens when heaven turns to hell in one short weekend? A family in Canada found out that not all Airbnb guests are created equally –
After watching that clip I can honestly say that I will (probably) NEVER become an Airbnb host! How do you even begin to clean up such a mess and who will pay it? I asked HVA’s own Dave Jr about it and his response did not sound too promising. “If your home is your prime source of income via Airbnb or a Bed and Breakfast and you only carry a standard homeowners insurance policy then you are probably out of luck.” he said. Airbnb does offer their hosts something called Host Guarantee but is it enough? Will a standard homeowners insurance policy cover an Airbnb host and their guest? No.

A standard homeowners insurance policy was not created to cover all of the pitfalls that a standard Bed and Breakfast runs into, it was never meant to. Your homeowners policy covers the things that a normal family experiences in their normal day to day lives. When you have a Bed and Breakfast or an Airbnb you need additional coverage for these additional problems and unfortunately many people do not realize this and that my friends is why you really need to talk to an independent insurance agent before you decide to own and operate a standard Bed and Breakfast or an Airbnb.

A person who runs a standard Bed and Breakfast knows that they run a business and it must be treated as such, that means proper permits, proper insurance, and a visit from a health inspector. An Airbnb host may be savvy enough to have all of these things but many hosts are winging it and that leaves them and their guests in a sort of business limbo. What happens if an Airbnb guest becomes ill from eating a meal in your home? What happens if someone visiting your Airbnb guest damages your home? If you do not have proper insurance coverage then you and you alone are left paying and you risk loosing your home in the process.

Airbnb’s are a wonderful idea and can be a great way to get to know the people who live in the city you are visiting. It’s the perfect way to meet new people and get extra income out of that spare bedroom that no one ever uses but there is always a downside as the people in Canada found out. For further information on properly insuring your Airbnb or Bed and Breakfast contact Dave Jr at Hudson Valley Agents, 845-778-2141. Your home is your greatest asset, protect it with the right insurance coverage.