If you’re planning on offering your Airbnb for long term stays, you may need additional insurance. Read this article to find out more.

As an Airbnb host, you likely know the importance of having insurance coverage in case something unexpected happens. Not only can it help protect you financially in the event of an emergency, such as damages or incidents of theft or vandalism, but it can also provide peace of mind knowing that you are covered if something unexpected happens.
But what about when it comes to renting out your Airbnb for long term rentals? Do you need special insurance for a rental that lasts longer than a month? In this blog post, we’ll discuss whether or not you need insurance for long term Airbnb stays and how to go about getting it if needed.

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Do I Need Insurance for Renting My Property as an Airbnb?

First, let’s take a look at a more basic question: whether or not insurance is required for renting out your house, condo, or apartment as an Airbnb. The short answer is: it depends. Having the correct insurance is definitely a good idea, since it can protect you financially in the event of a property damage or liability claim.
It’s also important to note that some places require Airbnb hosts to have special insurance in order to legally rent out their properties. These requirements vary by location, so you’ll want to check with your local government to ensure that you are meeting the necessary regulations.
Despite all this, you may be surprised to learn that Airbnb does not actually require hosts to have insurance. However, it’s probably a good idea to talk with your insurance provider to ensure that you have the appropriate coverage.

Do I Need Insurance for a Long Term Airbnb Rental?

When it comes to long term Airbnb rentals, the answer to whether or not you need insurance is a bit more complicated. While your existing tenant insurance policy may cover any damage caused by guests in a short term rental situation, it’s important to ensure that your insurance policy provides coverage if you’re renting out your property for an extended period of time.
While this can often be done by simply adding a rider to your existing policy, you may also need to purchase an additional insurance policy altogether for long term Airbnb stays.

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What’s the Difference Between Short Term and Long Term Rentals?

Airbnb defines short term rentals as any bookings lasting less than 28 days. This includes overnight stays, day visits or even a few hours of accommodation in any property type.
As for long term rentals, Airbnb defines this as any reservation lasting four weeks or more. Many travellers often overlook the opportunity to book an extended stay, but it’s certainly worth considering for those with enough time — and it certainly helps that there are usually some savings involved. And just like short term stays, any property type can be booked for long term stays, from rooms to apartments to entire homes.

Can I Make More Money on Long Term Rentals?

When it comes to Airbnb rentals, there is a debate about whether you can make more money on short term or long term stays. While the answer may vary depending on your location and other factors, generally speaking, you have the potential to earn more from long term rentals compared to short term ones.
This is because Airbnbs with monthly rental periods tend to result in higher rental rates and fewer vacancies due to less turnover of guests. Additionally, while most cities require special insurance for long term Airbnb rentals, this cost is often offset by the increased profits generated from extended stays.
The other side of this debate is that your Airbnb listing may enforce an automatic monthly discount on long term rentals, so you may not make as much day by day on a monthly rental. However, shorter stays require cleanings in between, and it’s not guaranteed that you’ll be able to get back to back bookings. For this reason, even with the weekly or monthly discounts, it’s still usually better to book long term rentals on Airbnb for a month or longer.

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Does Airbnb Offer Free Coverage for Hosts?

Airbnb does provide a free product, called AirCover for Hosts. While this provides some coverage to hosts during long term stays, there are some downsides to this protection. For instance:

  • It’s important to note that this insurance does not necessarily cover all of your belongings. Some of the host’s personal possessions may be excluded from the coverage offered by the AirCover for Hosts policy.
  • Another downside to using the coverage provided by Airbnb is that it can be a lengthy and complicated process to try to file a claim through their systems, making it difficult and frustrating to get your money.

What Kind of Insurance Do I Need?

After all this, the question still remains: What insurance should you have if you’re renting out your property as an Airbnb? The answer to this question depends on a number of factors, such as:

  • How much property you’d like to protect
  • The length of time you’re planning to rent out your property

It’s a good idea to discuss this with your insurance provider to see what your current policy will cover, and how short-term vs long-term rentals will affect this.

No matter what type of rental you’re planning on offering, we recommend playing it safe with additional coverage to ensure you don’t incur any potentially crippling fees. From legal fees if someone gets hurt to the cost of replacement for stolen or damaged items, having the proper insurance can save you from having to pay out of pocket.

APOLLO Insurance is here to help with effortless digital solutions for all your coverage needs. Get a free quote within minutes and have your new policy emailed directly to your inbox today.

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