Renting out your condo on Airbnb can be a great way to generate income, but it also introduces new risks and responsibilities. Standard condo insurance may not cover short-term rentals, leaving you financially vulnerable if an issue arises. Here’s what you need to know to protect yourself and your property.
Standard Condo Insurance May Not Cover Rentals
Most traditional condo insurance policies are designed for owner-occupied or long-term rental properties. If you rent your condo short-term through platforms like Airbnb, your insurer may classify it as a business activity—and exclude coverage for related claims. Always review your policy to understand what is and isn’t covered.
Consider Short-Term Rental Insurance or Endorsements
Some insurance companies offer specific coverage for short-term rentals. You can either purchase a separate policy or add an endorsement to your existing condo insurance. This type of coverage can protect you against guest-related damages, liability claims, and loss of rental income due to covered events.
Understand Airbnb’s Host Protection Policy
Airbnb provides limited coverage through its Host Guarantee and Host Protection Insurance. However, these programs have exclusions and should not be used as a replacement for personal insurance. They may not cover intentional damage, wear and tear, or high-value items, making it essential to have your own comprehensive policy.
Check Condo Association Rules
Before listing your unit, review your condo association’s bylaws. Some associations restrict or prohibit short-term rentals. Violating these rules could result in fines or legal consequences, so it’s essential to remain compliant.
Protect Your Investment
Renting out your condo can be a profitable venture, but it also comes with unique risks. Ensure you have the right insurance coverage in place so you’re not left paying out of pocket when the unexpected happens.
Learn About Condo Insurance with Kingston Insurance Agency LLC in South Kingstown
At Kingston Insurance Agency LLC, we proudly serve South Kingstown, RI, and we’d love to help you explore your condo insurance options. Contact us or visit our office today to learn more about our services.
