Insurance for Airbnb Hosts – Renting out your property on Airbnb can be a great way to earn extra income. But with this opportunity comes responsibility. What happens if a guest causes damage to your home? What if they get injured during their stay? These are the questions every Airbnb host should consider. The answer lies in one word: insurance.
In this guide, we’ll walk you through why insurance is important for Airbnb hosts, what Airbnb offers, where it falls short, and what coverage options are available in the U.S. market in 2025.
Why Airbnb Hosts Need Insurance
When you rent out your home or part of it to guests, you become a short-term rental business. Traditional homeowners insurance is not designed to cover commercial activity. If you rely only on your regular home insurance, you may face serious financial risk in case of:
- Property damage caused by guests
- Theft or vandalism
- Injuries to guests or third parties
- Liability lawsuits
That’s why it’s important to have specialized insurance tailored for Airbnb and other short-term rental hosts.
What Does Airbnb’s Host Guarantee Cover?
Airbnb does offer its own protection, known as the Airbnb Host Guarantee and Airbnb Host Protection Insurance. Here’s what each includes:
1. Host Guarantee
- Covers up to $1 million in property damage
- Applies to furniture, artwork, electronics, etc.
- Doesn’t cover cash, pets, or shared/common areas
2. Host Protection Insurance
- Offers up to $1 million in liability coverage
- Covers guest injuries and property damage to others
- Includes some legal costs if you’re sued
Sounds good, right? But there’s a catch.
What Airbnb Insurance Doesn’t Cover
Airbnb’s insurance is secondary coverage and has limitations. It may not cover:
- Loss of rental income
- Bed bugs or infestations
- Acts of nature like floods or earthquakes
- Wear and tear or maintenance issues
- Long-term rental stays
- Liability outside the Airbnb platform
This means if you rely solely on Airbnb’s coverage, you could be left exposed.Best Insurance Options for Airbnb Hosts in the USA (2025)
To fully protect yourself, consider buying a dedicated short-term rental insurance policy. These policies are specifically designed for hosts and offer more comprehensive coverage.
Here are some of the top providers in 2025:
1. Proper Insurance
- Designed specifically for Airbnb and Vrbo hosts
- Covers property damage, liability, and loss of income
- Endorsed by Lloyd’s of London
2. Allstate HostAdvantage
- Adds short-term rental coverage to existing Allstate homeowners policy
- Covers guest-caused damage
3. Safely
- Offers guest screening + insurance
- Up to $1 million in liability and $10,000 in property damage
4. Slice Insurance
- On-demand short-term rental insurance
- Covers theft, vandalism, and liability
5. CBIZ Vacation Rental Insurance
- Covers buildings, contents, and commercial liability
- Good for professional hosts with multiple properties
Types of Coverage You Should Consider
When shopping for insurance as an Airbnb host, look for these types of protection:
- Property Coverage: Protects your building, furniture, and personal items
- Liability Insurance: Covers injuries or property damage to guests or neighbors
- Business Interruption: Pays you if your rental income stops due to a covered event
- Legal Protection: Helps with defense costs if you get sued
- Additional Endorsements: Flood, earthquake, or pet damage coverage if needed
How to Choose the Right Policy for Your Property
Follow these steps:
- Evaluate Your Risk: How often do you rent? Entire property or just one room?
- Compare Providers: Look for specialized short-term rental insurers
- Check Policy Exclusions: Know what isn’t covered
- Get Multiple Quotes: Prices and coverages vary
- Talk to a Broker: An expert can find the best fit for your situation
Cost of Airbnb Host Insurance in the USA (2025)
The cost of insurance for Airbnb hosts depends on:
- Location of your property
- Type of property (house, condo, apartment)
- Rental frequency
- Coverage amount
In 2025, most Airbnb insurance policies in the U.S. range between $500 to $2,000 per year. Some on-demand options may cost as little as $7 to $15 per night when you have a guest.
Tips to Reduce Insurance Costs as an Airbnb Hos
FAQs About Airbnb Host Insurance
Q: Can I use my regular home insurance for Airbnb hosting?
A: No. Standard home insurance usually excludes business activities like short-term rentals.
Q: Does Airbnb cover all types of damage?
A: No. Airbnb’s Host Guarantee has many exclusions such as wear and tear, bed bugs, or cash theft.
Q: Is landlord insurance the same as Airbnb insurance?
A: Not exactly. Landlord insurance is for long-term rentals. You need short-term rental insurance for Airbnb.
Q: Can I insure my Airbnb only on weekends?
A: Yes. Companies like Slice offer on-demand coverage when guests stay.
Q: Will this help me comply with local laws?
A: Yes. Some cities require hosts to carry proper insurance to operate legally.
Final Thoughts
Airbnb is a great way to earn extra money, but it’s not risk-free. Relying only on Airbnb’s built-in protection can leave you vulnerable. Investing in a dedicated short-term rental insurance policy gives you peace of mind and keeps your business safe.
Before your next booking, take time to review your coverage and make sure you’re protected.
Your home is your asset. Protect it wisely.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.