With a wealth of activities and lifestyle amenities, Austin, TX, is a popular destination for Airbnb guests. This popularity can translate into attractive returns on investment for those who rent out Airbnb properties. However, having the right insurance for these real estate ventures is crucial. After all, you’re renting to strangers, and vetting every guest thoroughly is impossible. At Armadillo Insurance Agency in Austin, TX, we want you to understand that traditional home insurance policies usually don’t cover home-sharing activities unless specific amendments or additional policies are in place.

Limitations of Standard Home Insurance

Standard home insurance is designed for personal living spaces, not commercial rental properties like Airbnb. When you rent out your home, whether a single room or the entire property, you introduce risks that typical policies aren’t designed to cover. These risks can include guest injuries or property damage.

Additional Coverage for Short-Term Rentals

To ensure you’re covered while hosting on Airbnb, you may need to extend your existing home insurance policy or purchase additional coverage:

• An endorsement to an existing policy – Some insurance companies offer an endorsement that modifies your current homeowner’s policy to provide coverage for short-term rental activities.
• Commercial Property Insurance – This is more extensive than a simple endorsement and covers property used for business, including renting out your home.

Don’t let a claim derail your Airbnb hosting dreams. Before listing your home on Airbnb, discuss your plans with your insurance provider at Armadillo Insurance Agency in Austin, TX. We can advise on the best course of action, whether it’s adding an endorsement or considering a separate policy to cover all bases.