The Role of Home Insurance in Protecting Your Airbnb 

Renting out your home or a room through Airbnb can be a great source of extra income—but it also brings new risks that your standard homeowners insurance policy may not cover. If you’re a Texas homeowner hosting guests through short-term rental platforms, it’s essential to understand how your insurance plays a role in protecting your property and finances.

What Homeowners Insurance Does—and Doesn’t—Cover for Airbnb Hosts

Standard homeowners insurance is designed to cover owner-occupied properties. It typically includes protection for the following:

• The structure of your home
• Personal belongings
• Liability for guest injuries or property damage

However, when you start using your home as a short-term rental, you introduce business-like activity, which many policies either exclude or limit. In Texas, some homeowners have found out too late that insurers denied their claims because they didn’t disclose their Airbnb use.

Consider the following:

• Short-term rental exclusions—Many policies exclude or limit coverage when a home is rented for profit, even for just a few days a month.
• Liability risks—If a guest is injured on your property, standard liability coverage may not apply unless your policy includes a specific short-term rental endorsement.
• Coverage options—Some insurers offer home-sharing endorsements, while others may require a landlord or commercial policy. Airbnb’s Host Protection Insurance offers limited coverage, but it’s not a substitute for personal insurance.

In Texas, where Airbnb hosting is popular in cities and tourist areas, it’s important to review your policy closely and talk to a licensed agent to avoid coverage gaps.

Protect Your Airbnb Financially

Don’t leave your home—or your income—at risk. American Eagle Insurance & Tax Insurance helps Texas homeowners understand the fine print and find policies tailored for short-term rental use. Contact us today for a personalized insurance review.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.