In today’s sharing economy, many homeowners are exploring ways to earn extra income by renting out a room—or even their entire house—on platforms like Airbnb or Vrbo. But before you hand over the keys to your home, it’s essential to understand whether your homeowners insurance provides the protection you need.
If you’re renting out your property or part of it in Springfield, OH, understanding how home insurance in Springfield OH applies to short-term rentals is crucial. At Link-Hellmuth Insurance, we want to help you avoid costly surprises and ensure you have the proper coverage in place.
What Does a Standard Homeowners Insurance Policy Cover?
A standard homeowners insurance policy typically includes:
- Dwelling coverage: Repairs or rebuilds your home after damage from covered perils like fire, wind, or vandalism.
- Personal property coverage: Replaces or repairs personal belongings inside your home.
- Liability protection: Covers legal expenses if someone is injured on your property.
- Additional living expenses: Helps pay for temporary housing if your home becomes uninhabitable.
However, these protections are designed for owner-occupied residences—not for commercial use like short-term rentals.
How Short-Term Rentals Change the Insurance Equation
When you list your home on Airbnb or a similar platform, you’re technically engaging in a business activity. This distinction is important because most homeowners insurance policies have exclusions for business-related activities, including short-term renting.
That means if a guest damages your property or gets injured during their stay, your standard policy may not cover the claim. Even worse, a claim related to rental activity could be denied entirely if the insurance company wasn’t informed ahead of time.
Airbnb’s Host Guarantee and Host Protection: Is It Enough?
Airbnb offers two protection programs for hosts:
- Host Guarantee: Reimburses up to $1 million for damages to your home or belongings caused by guests.
- Host Protection Insurance: Provides up to $1 million in liability coverage for third-party claims of bodily injury or property damage.
While these protections sound reassuring, they have important limitations:
- They may not cover certain property types or situations (e.g., intentional damage, certain personal belongings).
- They are secondary to your homeowners insurance.
- Claims are evaluated on a case-by-case basis, and coverage is not guaranteed.
Relying solely on Airbnb’s coverage can leave gaps in protection. That’s why it’s smart to review your insurance needs with a local expert in home insurance in Springfield OH—like the team at Link-Hellmuth Insurance.
Options for Homeowners Who Rent on Airbnb
If you plan to rent out part or all of your home short-term, consider these insurance options:
1. Endorsement to Your Current Policy
Some insurers offer a short-term rental endorsement that extends your existing homeowners coverage to occasional rentals. This may work if you only rent out your property a few weekends a year.
2. Home-Sharing or Short-Term Rental Insurance
This is a specialized policy designed to fill the gaps left by traditional homeowners insurance. It often includes:
- Property damage from renters
- Lost income if rentals are interrupted due to covered losses
- Liability coverage for guest injuries
3. Commercial or Landlord Insurance
If you rent your home regularly or manage multiple rental properties, a landlord insurance or commercial insurance policy may be more appropriate. These policies are designed for business use and typically provide more robust protection.
What Happens If You Don’t Have Proper Coverage?
Renting your home without the right insurance can leave you vulnerable to significant risks:
- Property damage not covered under your homeowners policy
- Lawsuits from guests injured on your property
- Loss of income from canceled bookings after damage
- Policy cancellation if your insurer finds out about unreported rental activity
By working with a knowledgeable agent, you can ensure that your coverage reflects your lifestyle and risk level.
Talk to a Local Expert in Home Insurance – Springfield OH
At Link-Hellmuth Insurance, we understand the unique needs of Springfield homeowners. Whether you’re renting out a room occasionally or running a thriving Airbnb business, our experienced agents will guide you through your options and help you find the right home insurance policy in Springfield OH.
We’ll assess:
- How often you rent out your home
- The type of property and guests
- Your current coverage and gaps
- Available endorsements or specialty policies
Short-term rentals can be a great source of extra income—but they also introduce new risks that your standard homeowners policy might not cover. If you’re listing your home on Airbnb or any similar platform, don’t assume your existing insurance is enough.
Protect your home, your finances, and your peace of mind with guidance from a trusted local agency.
Contact Link-Hellmuth Insurance Today
Make sure your home and guests are fully protected. Reach out to Link-Hellmuth Insurance for a personalized review of your coverage. We’ll help you explore your options for home insurance in Springfield OH and ensure you’re covered from every angle—so you can rent confidently and responsibly.
