With the continued rise of the sharing economy, platforms like Airbnb have revolutionized how people travel and earn income. If you're a host renting out your property—whether it’s a spare room, vacation home, or investment property—it’s crucial to understand the risks involved and the insurance coverage available to protect you and your rental income.
In this guide, we explore the types of insurance Airbnb hosts need in 2025, the gaps in Airbnb's own protection, and the best steps to ensure your rental property is fully covered.
Why Airbnb Hosts Need Insurance
Airbnb offers an incredible opportunity for hosts to earn extra income, but it also exposes them to several risks:
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Property damage (accidental or intentional)
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Liability claims (if a guest gets injured)
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Theft and vandalism
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Loss of income due to cancellations or repairs
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Legal expenses
Most standard homeowners insurance policies do not cover short-term rentals. That means if a guest sets your kitchen on fire or slips and falls on your property, you could be left paying out-of-pocket.
What Does Airbnb Offer in Terms of Protection?
As of 2025, Airbnb provides two primary forms of protection:
1. Airbnb Host Damage Protection (Up to $3 Million USD)
Covers:
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Property damage caused by guests
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Damage to belongings or shared building spaces
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Income loss due to guest damage
Does NOT cover:
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Normal wear and tear
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Damage from pets (in some cases)
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Cash, securities, rare artwork, etc.
2. Airbnb Host Liability Insurance (Up to $1 Million USD)
Covers:
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Legal liability for bodily injury
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Third-party property damage
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Injuries to guests during their stay
BUT: Airbnb’s coverage has limitations and exclusions. It’s not a substitute for a proper insurance policy.
Best Types of Insurance for Airbnb Hosts
To stay protected, Airbnb hosts should consider the following types of insurance coverage:
1. Short-Term Rental Insurance
Tailored specifically for Airbnb hosts, this type of policy typically includes:
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Dwelling protection
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Personal property coverage
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Liability insurance
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Loss of income
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Guest-caused damage
Many insurers now offer short-term rental endorsements or standalone policies to cover properties listed on Airbnb and similar platforms.
Top providers in 2025:
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Proper Insurance (underwritten by Lloyd’s of London)
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Slice
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CBIZ
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Allstate HostAdvantage
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Safely Insurance
2. Landlord Insurance (for Long-Term Hosts)
If you rent your property for longer periods, landlord insurance may be appropriate. It often includes:
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Structure and liability protection
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Loss of rental income
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Vandalism and malicious damage
However, it may not cover short stays, so always check with your provider.
3. Umbrella Insurance
An optional, additional layer of liability coverage (usually in $1M increments) that kicks in if your primary coverage is exhausted.
4. Commercial Insurance
If Airbnb is your full-time business or you manage multiple properties, you might need a commercial insurance policy to cover more complex risks.
What to Look for in Airbnb Insurance
When comparing insurance options, consider:
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Short-term rental specific coverage
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Replacement cost vs. actual cash value
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Loss of income protection
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Guest screening services
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Worldwide coverage (if you host internationally)
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Pet and party damage coverage
Also, make sure your insurer is Airbnb-friendly and allows vacation rentals.
Tips to Protect Your Airbnb Property
Aside from insurance, use these strategies to reduce risk:
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Screen guests through Airbnb’s built-in verification
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Install smart locks and security systems
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Set clear house rules and guest limits
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Document the property with photos before and after stays
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Require security deposits and use damage claim features
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Schedule regular maintenance and inspections
Conclusion: Don’t Host Without Insurance
Renting out your property on Airbnb is a great way to earn extra income, but it’s not without its risks. While Airbnb does offer some protections, they are not comprehensive. Having the right short-term rental insurance ensures you're covered from all angles—property damage, legal liability, and even lost income.
As the short-term rental market continues to grow in 2025, so does the need for robust insurance solutions. Protect your home, your finances, and your peace of mind with the right insurance policy tailored to Airbnb hosts.
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