26 May Airbnb Sweet Airbnb
Just one week after short-term rentals became legal in New Orleans, the city received 1,360 applications from people who want to rent their houses and apartments on Airbnb, VRBO, and similar services. Airbnb remains a controversial topic in New Orleans. Many locals complain that tourists who rent from Airbnb hosts are helping to displace longtime residents and fuel the dissolution of historic communities. Regardless of what Airbnb’s impact on New Orleans is, Airbnb’s Host Protection Insurance is causing a substantial headache among homeowners.
Studies show that Airbnb has had a positive economic impact on New Orleans. Many rental owners believe they are improving the local economy and providing a needed service. Property owners tend to make slightly more than $2,500 a month through rentals. Considering that most of the available Airbnb rentals in New Orleans are entire houses and apartments, it still provides a better bang for the accommodation buck. As tourists get better value for their money, it leaves them more money to spend in the city. However, individuals renting out their homes come back to a horrific scene after guests have vacated such as property damaged, belongings missing, and unrepairable destruction.
Airbnb’s Host Protection Insurance acts as primary insurance and provides liability coverage to hosts and, where applicable, their landlord. The insurance is subject to certain conditions, limitations, and exclusions. The policy provided by Airbnb is hardly comprehensive, and renters need to be aware of what is being excluded if something were to happen that would warrant a claim. Airbnb’s policy will cover a liability claim in the event a guest slips and falls in the temporary rental and files a lawsuit against the host. It would also cover a lawsuit against the host from some injured by the guest on accident.
There’s a lot the policy won’t cover. Without an independent homeowners or renters insurance policy, Airbnb hosts are leaving themselves susceptible to serious financial risk. It does not cover the personal property of the host. For example, if a guest were to damage a bed or steal something valuable belonging to the host, Airbnb would not be responsible. Airbnb is also not responsible for any issues with a listed property that might cause damages to a guest or their property. Slander, defamation, and harm caused by intentional criminal acts also contribute to the long list of situations that Airbnb does not observe.
Because of this, it is so important for any host that is planning on participating in Airbnb to have Homeowners insurance. At AWS insurance, we know your house is one of your biggest investments and the place that you and your family call home. With a comprehensive home insurance coverage policy with AWS, we will create a custom tailored plan that’s specific to your needs to get you financial protection and compensation for all of your belongings.