Airbnb Insurance vs. Homeowners Insurance: What’s the Difference?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 6
- 2 min read
If you're renting out your property on Airbnb or VRBO, you might assume your homeowner's insurance has you covered. But that’s not always the case. Short-term rentals introduce unique risks that standard homeowners' policies often exclude. That’s where Airbnb insurance - or more accurately, short-term rental insurance - comes in.
In this guide, we’ll explain the key differences between Airbnb insurance and homeowners' insurance, answer common questions from hosts, and show why Wexford Insurance is the trusted source for rental property coverage.
What Is Homeowners Insurance?
Homeowners insurance is designed for owner-occupied homes. It typically covers:
Damage to the structure from fire, wind, or theft
Personal belongings inside the home
Liability protection if someone is injured on your property
Additional living expenses if your home becomes uninhabitable
However, most homeowners' policies exclude business activities. That means if you rent out your home - even occasionally - your insurer may deny claims related to guest stays. Some companies offer home-sharing endorsements, but they’re limited and may not fully protect you.
What Is Airbnb Insurance (AirCover)?
Airbnb provides AirCover for Hosts, which includes:
$1 million in liability coverage
$3 million in damage protection
Coverage for pet damage and deep cleaning
Reimbursement for lost income due to guest-caused cancellations
AirCover is free and automatically included with every booking. However, it only applies during guest stays and doesn’t cover everything. For example, it may not protect against damage caused outside of booked dates or cover all types of liability.
Why Homeowners Insurance Isn’t Enough for Airbnb Hosts
If you’re hosting guests - even occasionally - your homeowner's insurance likely won’t cover:
Guest injuries
Property damage caused by renters
Loss of rental income
Legal claims related to your rental activity
Without proper coverage, you could be left paying out-of-pocket for repairs, lawsuits, or lost income. That’s why many hosts turn to short-term rental insurance or landlord insurance to fill the gaps.
Do You Need Additional Coverage?
Yes. To fully protect your property, you should consider:
Short-term rental insurance tailored for Airbnb and VRBO hosts
Landlord insurance for long-term rentals
Umbrella liability coverage for added protection
At Wexford Insurance, we specialize in rental property insurance for all types of properties—vacation homes, cabins, duplexes, condos, and more. We help you find the right coverage to protect your investment and income.
Why Choose Wexford Insurance?
Wexford Insurance is your go-to source for rental property insurance. We understand the unique risks of hosting and offer flexible, affordable policies that protect your property, income, and liability. Whether you rent out a lake house, townhome, or vacation cabin, we’ve got you covered. Contact Wexford Insurance today!
Frequently Asked Questions
Can I rely on Airbnb’s AirCover alone?
No. AirCover is helpful but limited. It doesn’t cover all risks or periods between bookings.
Will my homeowner's insurance cover Airbnb guests?
Usually not. Most policies exclude short-term rentals unless you add a specific endorsement.
What kind of insurance do I need for Airbnb?
You need a dedicated short-term rental policy or landlord insurance with Airbnb-specific coverage.
