When someone rents a place on Airbnb, whether it is a room, or the whole dwelling, for a night, or for a week, it’s NOT their residence. The problem is the definition of residence: Living or dwelling in a certain place permanently or for a considerable length of time. The key term here is “ on an occasional basis for residential purposes”. Visit FC&S and scroll down to “Rental of Premise to Others” near bottom of page. In other words, any claim involving a business would be denied on the HO form. These forms have changed over the years, but one thing has remained the same all homeowner’s policies carry a “business pursuit’s exclusion”. Let’s dig deeper.Īll major insurance companies use similar forms developed by ISO. Why is this alarming? A homeowner’s (HO) or renter’s policy could rightfully deny any claim involving a guest. What’s alarming is that it’s safe to say 95%+ of Airbnb hosts carry either a homeowner’s or renter’s insurance policy. Statistics show that around 7% of homeowner’s & renters actually file a claim. The problem with insurance is that you never know exactly what you have until you have to file a claim.

Is your current policy enough? What about if you only rent a few times per year? Does that even matter? Are you even asking the right questions? And who is answering these questions you ask? A topic that comes up all the time is Airbnb liability insurance.

Air b and b business