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Insurance and Airbnb: Sharing Your Home

By September 11, 2018 April 1st, 2019 No Comments

If you’re a homeowner, Airbnb hosting can be a great opportunity to make money off of your space when you’re not occupying it. It seems like an obvious way to get the most from your home-buying investment.

Currently, more than 2.5 million people have listed their properties or portions of them on the site, making quite a bit of added revenue. But as enticing as that extra cash can be, there are some serious implications to consider before jumping into it.

The Legal Considerations

It’s not likely that Airbnb hosting can put a homeowner in breach of their current mortgage contract. Still, that doesn’t mean there aren’t potential legal consequences to consider. There are many ways hosting could equal liability. Some cities even require specific licenses and registration to operate an Airbnb.

Check that there’s no short-term occupancy rules or licensing requirements in your city, and that your insurance covers what you’re trying to do, and consider incorporating another layer of protection.

Relying on the insurance that Airbnb provides is a huge mistake and can be hard to get a reimbursement from. Hosts will generally need to take out additional coverage from their existing homeowners insurer for adequate coverage.


Home-sharing is a fairly new term;  referring to situations where people share their entire home or portions of their home by using a home-sharing network in exchange for compensation.  The hosting experience and guest experiences of using home sharing sites are often so comfortable and inviting, that for many years people didn’t even ponder onto insurance needs.

For hosts renting out their homes, listing the property is often the first step, once the rental actually occurs, insurance questions are not really top of their mind. However, as these services have become popular, more and more people are starting to become aware of the risks involved with home sharing.

What to Expect

Delaware homeowners insurance companies like IFS Insurance can provide a proper counsel about your home insurance and what kind of coverage you will need for the new risks.  

Many people assume if they are renting out their home or rooms in their home through a legitimate service with a good reputation that they are protected against damage. Although some of these services can offer optional, or even included protection, what they offer is not home insurance.

Delaware homeowners insurance companies will need to write your policy to allow the hosting or home-sharing activity. Airbnb may offer some coverage for specific circumstances, however  it must be clear that it’s not home insurance and you have an obligation to advise your home insurer about this new activity in order for your policy to be valid.

Utilizing Delaware homeowners insurance companies will ensure you have the right protection and will help you get back to where you were before a claim so you can keep enjoying your property or rent it out.

About IFS Insurance

At IFS Insurance, we specialize in protecting homeowners and renters throughout Delaware, New Jersey, Pennsylvania, and Maryland. Our quality solutions and commitment to excellence has allowed us to serve these states for over 50 years. For more information about our products, we invite you to contact us today at (800) 598-0420