How does home insurance work with Airbnb?

Trust is the basis in any business. However, when you have to protect yourself, what home insurance choose for rent on Airbnb?

Airbnb represents millions of dollars in terms of transactions between individuals worldwide. If in most cases the stays go well, it can happen in others that the tenants steal equipment or objects in your Airbnb accommodation when leaving. To protect you from any inconvenience, how does home insurance work with Airbnb? This is the subject of this ticket.

Is insurance essential when you rent Airbnb?

The renting of dwellings between individuals via Airbnb is no longer revolutionary. And if you want to know more about it legal framework for this activity , follow this address. Once rented, many problems can arise at the end of the lease. Tasks on walls, breakdowns, flights or damage of property. Airbnb therefore offers two types of guarantee to the owners practicing seasonal rental:

• Host Insurance: This is a free civil liability insurance that is active as part of a stay on Airbnb. It covers landlords and tenants in the event of a third party's prosecution as a result of tangible or material damage that is set at 800,000 euros.
• Host guarantee : it activates within the same framework as Host Insurance. However, it covers owners and tenants in the event of damage to housing or personal property during the stay. This coverage cannot exceed 800,000 euros.

If these guarantees clearly stipulate a kind of cover of owners, tenants and their property a few traps are nested there. In fact, Host Insurance only takes into account intentional and non-accidental acts.

Thus, if, for example, the owner or tenant are injured during the stay, it will be necessary to prove that either person had a formal intention to harm his or her vis-à-vis in order to be able to enjoy this coverage. Otherwise, both the owner and the tenant will have to go through other means in addition to those proposed by Airbnb to close the dispute. What is expensive in time and money, without guaranteeing the rights of each party at the end of the process.

In the case of the Host Guarantee, the Host Warranty effectively excludes damage to common areas, species or pets. Thus, in the event of theft or damage of material property, the platform offers virtually no protection either to the host or to its tenant.

As a result, it becomes clear that it is absolutely necessary to practice renting on Airbnb, to have an independent housing insurance.

Home insurance with Airbnb, how does it work?

Since in the event of a flight or damage Airbnb leaves both the owner and the tenant alone, insurance is required to assert what is law in due time and time. Unfortunately, it is complex to find Airbnb- Insurance to date friendly .

In fact, when you rent your accommodation on the Airbnb platform, insurance considers this rental as a commercial activity. This activity is not at all covered by standard housing insurance. The risk is different. In addition, the civil code imposes on any tourist rental owner to inform his or her insurer. If applicable, the insurer is entitled to refuse compensation in the event of a dispute or claim.

However some insurers close their eyes on the rentals of your accommodation a few nights a year. At most a few weekends a year. However, you will still need to get in touch with your insurer, which could ask you a number of questions. Here are some excerpts:

• What is the extent of rented accommodation (one bedroom or the whole accommodation)?
• How many tenants do you ensure at a time?
• Will you stay there during your stay with your tenants?
• Are the spa, the swimming pool, the barbecue, the bike or your car included in the seasonal rental contract?
• Are associated services available (reservation of airline tickets, paid breakfast, household)?
• What security measures are available to tenants in rented accommodation (extinguishers, smoke detectors...)?

If in the vast majority of cases where security measures are ensured and the number of tenants restricts insurers acquires nothing to change the housing insurance contract by ensuring both your accommodation and your tenants, on the other hand, the insurer can simply terminate the contract that binds it to you and your accommodation.

However, it is still possible to negotiate with your insurer the number of days in which your accommodation can be rented per year on Airbnb. But also increase the home insurance premium, or partition the coverage, including by excluding care for vandalism. Some more greedy insurers will offer you (will in fact impose) to subscribe to all-risk insurance.