Airbnb Insurance Problems

Airbnb Insurance Problems

Airbnb Insurance Problems

Airbnb Insurance Problems are real and with it comes the problem of liability of insurance coverage provided to the Airbnb hosts.  As in certain sections of the State like California, if the host property is usually treated as a business pursuit.

Airbnb Insurance Problems

Here are some of the insurance problems of issues that an Airbnb Host may face in certain areas of the United States.

Airbnb Insurance Problems: The issues which are addressed

Most commercial liability insurers allow you to customize their plan to fit your needs. But if you’re not familiar with what coverage you need, insurance can get a bit confusing. Plus, if you purchase commercial liability insurance, you’ll have to manage both a homeowner’s plan and a commercial insurance plan.

Proper Insurance

Insurance Problems

Limitation to Coverage Amount.

Airbnb Insurance coverage is limited to $1 million for each occurrence and $2 million for each location. For all insured locations within the US, the master policy is limited to only $10 million a year.  So the sooner your master policy limited is reached, you will be left without any coverage of the rest of the year.

Coverage is only liable if Host has other coverage available.

Airbnb coverage will only cover the coverage of the excess coverage by the host. So if the host wants to submit their claim, from Airbnb then their insurance claim must be denied by the homeowner insurer. Or else Airbnb will not release a single penny.


Additional Limitation from Airbnb Insurance Policy includes :

  • Airbnb suing the Host
  • Acts of intention
  • Bacteria or fungi
  • Communicable disease
  • Chinese drywall
  • Host Suing Airbnb
  • Personal and advertising injury
  • Pollution
  • Terrorism acts

Airbnb’s HPI has coverage restriction in actual stay

House Insurance

If a guest gets injured during an early arrival or overstay on your Airbnb property, which is not entirely a part of the actual stay. Then the insurance coverage is not applicable. Similarly, if the actual guest fails to show up and someone else substitute in their place, then the host will not be able to access the coverage.

Also, secondary coverage is most likely to be unavailable to most hosts due to the exclusion in their homeowner policy.  This means if a guest gets injured during nearby check out hours, then the person itself is liable for any accidents.

Broad Application of Business related issues

Business pursuit has a history of being applied to a host. As if an Airbnb host has a huge benefit, then it is interpreted as a business pursuit.  Of course, it is important to consider the specific wording used in an insurance policy, the elusion of business pursuit is applicable to any injury which was sustained due to something even far from business-related.

The Risk from Scammers

Scammers are everywhere and they go to any extent in order to fulfil their motive of outwitting and looting the host.  But most Airbnb host is not informed about how Airbnb can provide an unintended opportunity for sophisticated swindlers for enjoying the hosting expense without having to bear any trial costs.

In cases where scammers are considered to be legal tenants and cannot be evicted directly by the host. Airbnb refuses to help out with any sort of support for these issues. Also, this accounts in one of the prime time Airbnb Insurance problems. For which the Airbnb insurance program does not provide any sort of coverage for the rental and all its legal costs.


Apart from eh above Airbnb insurance Problems, there isn’t any major issue that is on to concern. But it is highly suggested to opt for a third party home insurance for your rental. In case of any legal procedure is taken as most of the Airbnb insurance problems need to be taken care of by the hosts themselves, which is quite a hectic in certain times.

To learn every bit on Airbnb and its Insurance policy so that you never face any Airbnb Insurance Problems, check Airbnb Insurance.


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