Get an Airbnb Insurance Quote for Free

What is Airbnb insurance?

With over 8 million listings and 5 million hosts globally, Airbnb has transformed the short-term rental market. That's why Airbnb insurance, also known as host or short-term rental insurance, exists. Airbnb insurance is tailored for property owners renting out their homes or portions of them through the platform. This type of policy is also applicable to those using Vrbo.

Standard home insurance often excludes commercial activities, but Airbnb insurance covers the unique risks of home-sharing. It ensures you are covered for property damage, liability claims, and other potential issues that can arise from hosting guests.

It’s worth noting that Airbnb offers free liability and damage protections under its free AirCover for Hosts coverage, so if you use the app, your property will be protected, albeit not extensively. If you want to be sure that your property is fully protected, the better option is to purchase short-term rental or Airbnb insurance from a trusted provider.

Doing so will provide you with a bigger variety of coverage options, in addition to letting you set higher coverage limits. It’s especially useful if you rent out your property frequently, since doing so increases the likelihood of injury, damage or theft.

Who needs Airbnb insurance?

If you're an Airbnb host, you need this coverage. While platforms like Airbnb offer some protection, it's often not enough to cover significant damages or liability claims. A dedicated short-term rental policy is crucial for any property owner who:

• Rents out their entire home, a room, or a secondary property (like a cottage) for short periods.
• Wants protection against guest-related damages that exceed a standard security deposit.
• Needs liability coverage for accidents or injuries that occur on their property during a guest's stay.

What does Airbnb insurance cover my business for?

A typical short-term rental or Airbnb insurance policy include the following:

• Commercial property insurance: This covers damage to your property and belongings, like electronics, furniture, and appliances, caused by fire, weather, vandalism, or theft. This could include damage caused by your guests as well. However, we recommend confirming this with your provider.
• General liability insurance: This covers third-party damage or injury costs. For instance, if your guest trips over a carpet and breaks their wrist on your floors or if they damage your appliances. Whether you need to pay for a legal dispute or property repairs, you’ll receive the necessary funding through this coverage.

What insurance coverage add-ons are recommended for Airbnb hosts?

To enhance your protection, consider these valuable add-ons:

• Business interruption insurance: Also known as ‘loss of income’ or ‘rental income’ insurance, this reimburses you for lost rental income if your property becomes uninhabitable due to a covered claim.
• Loss assessment insurance: This will protect you if you are renting out a condo – specifically in the event a guest makes a claim against your condo corporation that exceeds its insurance policy limit. Claims like this are made for issues occurring outside your unit, usually within your condo building’s common areas, like a gym or a swimming pool.
• Contingent unit insurance: This covers gaps if your condo corporation lacks sufficient insurance. Since renting your condo on Airbnb carries a higher risk compared to a long-term tenant, adding this coverage can provide essential protection and peace of mind.
• Cyber liability insurance: If you store client information digitally, this protects you from data breaches and cyber incidents.

How much does Airbnb insurance cost?

The cost of short-term rental or Airbnb insurance can vary significantly, but you can typically expect to pay between $700 and $2,000 per year. The final price depends on several factors specific to your property and hosting activities. The best way to find a competitive rate is to get a personalized quote, which you can do here on Rates.ca.

What factors determine Airbnb insurance rates?

Insurers consider several key factors when calculating your Airbnb insurance premium, including:

• Location: Where your rental is located plays a significant role in determining your insurance premium. Insurers assess risk based on neighbourhood crime rates, proximity to fire services, and the frequency of weather-related claims in the area, such as floods or wildfires. A property in a low-risk area will typically have lower insurance costs than one in a location prone to claims.
• Type of property and construction: The type of home you're renting out – whether it's a single-family house, cottage or a condo – affects your rate. The materials used to build your property also matter. For example, homes with newer, more durable construction materials are often cheaper to insure than older homes with outdated electrical or plumbing systems, which may pose a higher risk.
• Amenities offered: If you offer exciting extras like a swimming pool, hot tub or fireplace, you’re at a higher risk of accidents and liability claims. While these features can attract more guests, properties with these types of amenities usually have higher insurance premiums to account for the added danger.
• Rental frequency: How often you rent out your space (e.g., full-time vs. occasionally) impacts your premium. More guests mean more risk.
• Coverage limits: Higher liability and property coverage limits will result in a higher cost.
• Claims history: If you’ve made multiple insurance claims in the past, whether for your primary home or another property, insurers may view you as a higher-risk client. A clean claims record can help you secure a more competitive rate.

How does Airbnb insurance work?

Getting short-term rental or Airbnb coverage is a straightforward process. Here are the steps:

• Choose your coverage: Provide details about your property and rental business, then pick the types of coverage that suit your needs, and insurers will offer you a quote.
• Pay your premium: You get to pay either a monthly or annual premium to keep your policy active (the choice is up to you). The cost depends on factors like your property type, location and your claims history.
• File a claim when needed: If an incident occurs – like a guest damaging your furniture or slipping and getting injured – you can file a claim with your insurance provider.
• Receive compensation: After paying your deductible, your policy will then cover the associated costs up to your coverage limits, giving you financial protection and peace of mind.

How to get the cheapest Airbnb insurance quote

Here are some practical tips to help you find the cheapest and most suitable insurance for your Airbnb:

• Bundle your policies: You can often save money by bundling your short-term rental insurance with your primary home or auto insurance policy.
• Increase your deductible: Your deductible is the amount you pay out of pocket before your insurance coverage kicks in. Opting for a higher deductible will typically lower your monthly or annual premium.
• Implement risk management: Having features like smoke detectors, fire alarms or a security system can sometimes lead to a discount.
• Maintain a good claims history: If you have a good record with no previous claims, you may be eligible for a lower rate.