What Insurance Do I Need to Run an Airbnb?
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What Type of Insurance Coverage Is Needed for Running an Airbnb?

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What Insurance Do I Need to Run an Airbnb in San Diego, CA


When you have a single-family residence that’s not used for rentals, there’s always the potential for something to go wrong. Therefore, it only stands to reason insurance is necessary when multiple people are involved, which is essentially what you’re doing with Airbnb. Take a moment to learn about what kind of insurance you need if you have an Airbnb you’re running.

Professional Coverage

Running an Airbnb is considered a business for insurance purposes. For this reason, you’ll need professional or commercial insurance. Specifically, you’ll need the following coverage:

• Homeowners insurance
• Landlord insurance
• Business insurance

It’s often possible to obtain coverage that includes all three of the options listed above. Doing so is a good way to save money and keep track of your monthly payments.

Additional Coverage to Consider

In addition to what’s already been mentioned, it can be helpful to have some extra coverage for your Airbnb rental property, especially if you plan to do mostly short-term rentals. Having multiple rentals of this nature increases your odds of having some type of damage occur to your property. Additional coverage you may to wish to consider for your overall policy includes:

• Open perils building insurance – This coverage applies to the physical parts of your Airbnb rental (e.g., walls, roof, and basic structures). With this coverage, you’ll be protected against damage from flood, fire, storms, and similar events.
• Contents insurance – With this addition to your policy, the things inside your Airbnb will be covered, which includes furniture and anything else inside your rental property. Note: Ask about theft and vandalism coverage for your contents, since coverage of this nature isn’t always automatically included with a standard Airbnb.
• Business income insurance – This is coverage that kicks in if you’re unable to rent your Airbnb due to a flood caused by a broken pipe or a similar situation.
• Liability insurance – With this coverage option, you’ll be protected if one of your temporary tenants slips and falls or if similar accidents occur.

Why Counting on Your Home Insurance Policy Is Risky

Running an Airbnb is considered something done for business purposes—to generate income, in this case. A standard homeowners policy does cover many common exposures and perils likely to impact a home. And while your Airbnb may actually be your home or one you normally use as a secondary residence, a homeowners policy isn’t the same as a commercial policy.

However, if you prefer to quickly ensure you have some type of coverage, you can temporarily rely on your homeowners insurance. Eventually, though, it’s best to have the proper business or professional coverage. Plus, if you end up filing personal claims with your homeowners insurance company for situations involving you and your family along with anything that may involve renters, you could end up paying more in monthly premiums.

No matter which type and amount of coverage you choose, make sure to buy your insurance from a trustworthy, experienced provider. For reliable, affordable home and business insurance, San Diego residents know they can trust Altra Insurance Services. We also provide renters, motorcycle, and auto insurance in San Diego. Get a free quote by calling one of our friendly agents today at (619) 404-6311.

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