Why Your Homeowners Policy Usually Doesn’t Cover Hosting

Many homeowners policies treat paid hosting as a business activity, and business activities are commonly excluded or limited.

The National Association of Insurance Commissioners (NAIC) warns that listing a home on a rental platform with any frequency makes it likely the policy will treat the activity as a business. Its 2016 home-sharing paper says the activity may be “defined in the policy as a home-based business.”

The same paper explains that many policies carry a business exclusion that can remove liability coverage for injury or property damage connected to that activity. NAIC’s consumer guidance adds that an insurer may deny a claim tied to short-term renting even where the policy has no home-sharing exclusion.

What ISO’s home-sharing forms add

ISO is the advisory organization whose forms many insurers adapt. In 2017 it introduced home-sharing wording in two parts.

One part is an exclusion. It defines “home-sharing host activities” arranged through an online platform as a business activity, which takes them out of the base homeowners coverage.

The other part is optional. The broadened home-sharing endorsements (the HO 06 6x series) extend property and liability coverage for hosting. They match the base form: HO 06 63 attaches to the HO 00 03, HO 06 65 to the HO 00 05, and so on. The current edition is 09 22.

In ISO’s 2022 program, the exclusion was folded into the standard homeowners forms, and the standalone exclusion endorsement (HO 06 53) was withdrawn. Insurers file their own versions, so check the form numbers and wording printed on your own policy.

Trade-press analysis of the 09 22 broadened endorsement describes homeowners coverage as primary over platform-provided insurance, protection plans or guarantees. Other wording is possible, which is why “who pays first” has no single answer. Read your endorsement and the platform’s terms side by side.

How a storm claim can get pulled in

Business wording is not limited to liability. ISO’s Coverage B wording for other structures carves out structures from which a “business” is conducted, with a carve-back for structures used primarily for home-sharing. A rented guest house or ADU can raise that question even when a storm, not a guest, caused the loss.

Whether it does for you depends on your policy’s wording, your state and the facts of the loss.

Ask your insurer for the exact definition of “business” in your policy and where home-sharing is addressed. For the same exclusion family applied to other work done at home, see Running a Business From Home? Homeowners Limits. For other items that sit outside a standard policy, see Homeowners Insurance: Hidden Coverages.

AirCover Has Two Halves, and Only One Is Insurance

Host liability insurance is insurance; Host damage protection is a guarantee that Airbnb’s own terms say is not insurance.

AirCover for Hosts bundles several protections:

• $3 million Host damage protection (HDP)
• $1 million Host liability insurance (HLI)
• $1 million Experiences and Services liability insurance
• Guest identity verification and reservation screening
• A 24-hour safety line

Airbnb’s terms recommend that hosts buy separate insurance for losses outside HDP. The practical difference between the halves is who regulates the promise and where a dispute goes: a regulated policy answers to your state’s insurance department, while a platform guarantee answers to the platform’s own terms and its arbitration clause.

Both halves apply only to Airbnb bookings, and neither replaces a policy on your own property.

Why AirCover Works Differently Depending on Your State

Airbnb’s terms back the damage guarantee differently in Washington, Minnesota and Arkansas, and Virginia’s insurance regulator challenged it in 2026.

Washington, 2023: the resolved precedent

In May 2023, Washington’s Insurance Commissioner fined Airbnb $20,000 for acting as an unauthorized insurer. The order required Airbnb to secure a surplus lines policy to keep offering the program in the state.

Airbnb also agreed to review previously denied Washington HDP claims filed since January 1, 2021, and to pay any covered costs that were improperly denied.

The state reported nearly 13,000 reimbursement requests from Washington hosts between January 2019 and March 2022. Of those, 5,525 went directly to Airbnb, and Airbnb paid 3,565 of them, a total of just over $2.3 million.

At the time, Airbnb said the program was a guarantee of a guest’s obligation and not an insurance policy. Washington’s order was a consent order, not a court ruling.

Minnesota and Arkansas

Under Airbnb’s terms, Minnesota hosts have a reimbursement insurance policy behind the guarantee, and may claim directly against the insurer if Airbnb has not performed within 90 days after proof of loss is filed.

For Arkansas, the terms say the obligations are not covered by a reimbursement insurance policy and are backed only by Airbnb.

Virginia, 2026: pending

In June 2026, the Virginia Bureau of Insurance told Airbnb it considers Host Damage Protection an insurance product offered without a license or certificate of authority. The Bureau notes that Host liability insurance is underwritten by a licensed carrier and HDP is not.

The Bureau’s reasoning, as reported by Insurance Journal, is that Airbnb contractually undertakes to indemnify hosts up to $3 million for contingent covered losses and controls the claims process. It reportedly seeks fines and a halt to HDP in the state unless Airbnb becomes licensed or engages a carrier.

Airbnb disputes this. It told Insurance Journal that the program “is lawful and is not – and has never been – insurance.”

This is a pending regulatory matter before the State Corporation Commission, not a lawsuit, and nothing has been decided. Reports say Airbnb was given until July 31, 2026 to respond by negotiating a settlement or agreeing to defend itself at a hearing starting December 14, 2026. We found no published outcome as of November 3, 2026. Check the Commission’s docket for the current status.

For a host, nothing changes today in how to read the program. Treat damage protection as a guarantee and keep your own coverage in place.

What AirCover Doesn’t Cover

AirCover applies only to Airbnb bookings and only within its terms, so it leaves gaps you fill with your own coverage.

• NOT COVERED Bookings made elsewhere. Vrbo, Booking.com and direct bookings fall outside both halves.
• NOT COVERED Not all damage. The terms list ineligible property and excluded losses. Examples include animals and most vehicles and watercraft as ineligible property, and mold, electronic data and natural events among excluded losses. Read the full lists in article 2869.
• NOT COVERED Losses that are not guest-caused. HDP responds to losses caused by guests as the terms define them. A burst pipe or a storm is a matter for your own property policy.
• NOT COVERED Your own property under the liability half. Host liability insurance pays for your legal liability to others, not for damage to your place.
• GUARANTEE The reporting windows. Fourteen days from checkout to pursue the guest and notify Airbnb, and 30 days from checkout to file the payment request. The terms do not say what happens if you miss a window, so treat both dates as firm.
• GUARANTEE The guest comes first. Airbnb pays only after the responsible guest fails to pay, and disputes go to arbitration.
• INSURANCE The liability half has exclusions too. Assault and battery, communicable disease and punitive damages are among them.

Your own policy is still needed for the building, your contents, and losses AirCover does not reach. For the claim process after damage, jump to the first 14 days.

Vrbo, Booking.com, and Direct Bookings

Vrbo provides liability insurance for eligible bookings but does not pay for damage to your own place, and direct bookings have no platform protection at all.

Vrbo

INSURANCE Vrbo’s $1 million Liability Insurance is serviced by Generali Global Assistance. Vrbo is the policyholder, and owners and property managers are the insured parties. Vrbo’s page describes the limit as $1 million per property, per policy year, for reservations processed through Vrbo checkout.

It covers liability and medical payments claims, such as a traveler’s injury or damage to someone else’s property. Vrbo says it works alongside your own liability policy. A deductible may apply in some situations, so read the program page.

For guest-caused damage to your property, Vrbo relies on a security deposit you require or a Property Damage Protection plan the guest buys through Generali. Plan options and amounts change, so check Vrbo’s current help page. Source: Vrbo, $1M Liability Insurance page, accessed November 3, 2026 (the page shows no update date).

Booking.com and other platforms

Each platform sets its own host protections and terms. This article does not summarize Booking.com’s program. Read its current host terms and ask your insurer how those bookings are treated.

Direct bookings

NOT COVERED A booking you take yourself comes with no platform protection. Any liability or damage coverage has to come from your own policies, so ask whether your policy or endorsement still applies to a stay that did not come through a platform. ISO’s home-sharing definition refers to an online platform.

Your Four Coverage Options

Four kinds of coverage are common for hosts, and which ones fit depends on whether you share your home, rent it out whole, or run a dedicated rental.

1. Home-sharing endorsement

An add-on to a homeowners policy, usually for a primary residence. It can extend property and liability coverage for hosting within its terms. Ask what limits apply to nights, rooms and guests, and how it treats bookings outside a platform.

2. Landlord or dwelling-fire (DP) policy

Built around longer-term tenants. Ask whether the insurer accepts short stays at all, and how it handles lost rent when stays are short.

3. Short-term rental policy

Written for dedicated rentals. Ask what it includes for the building, contents, liability and lost rent, and whether direct bookings count.

4. Umbrella policy

Adds liability above your underlying policies. Some exclude rental activity, so ask before relying on one. See Umbrella Insurance and Excess Liability vs. Umbrella.

Table 1: How hosts are protected, side by side

Airbnb Earnings Protection

Launched in 2026, Earnings Protection is an optional paid insurance plan offered with MIC Global. It covers lost hosting income from certain unexpected events, based on past earnings, with plans for one to three months of earnings.

Eligibility, per Airbnb: five or fewer listings, more than 50 nights reserved on a listing in the past year, and a year of hosting experience. At launch it was available in 45 states and the District of Columbia, with Indiana, Maine, Missouri, New Jersey and New York expected in early 2027. It protects income, not your property or your liability. Checked November 3, 2026.

Table 4: Which setup needs what

Should You Tell Your Insurer?

Yes, tell your insurer in writing, because hosting your insurer does not know about may lead to a denied claim or nonrenewal.

Tell your agent what you rent, how often, and through which channels. Ask what changes: an endorsement, a different policy, or a different insurer.

Get the answer in writing, and keep the email. A phone call that is not written down is hard to rely on after a loss.

If you have already been hosting without telling your insurer, tell them now rather than after a claim. What happens next depends on your policy and state. If an insurer declines to renew, see Home Insurance Non-Renewal.

If You Rent or Own a Condo

Tenants usually need their landlord’s permission before hosting, and both renters policies and condo unit-owner policies have limits of their own.

If you rent

Start with your lease, which may restrict subletting or short stays. Get your landlord’s permission in writing before you list.

The NAIC notes that renters policies, like homeowners policies, are not designed to cover accidents arising from renting out the property, and an insurer may deny the claim. Ask your insurer directly. See What Does Renters Insurance Cover?

If you own a condo

Check your HOA or building rules first, since many restrict short-term rentals. Then check whether your unit-owner policy contains a business-use exclusion.

Even if it does not, review the association’s master policy for common areas. Ask both the HOA and your insurer, in writing.

A Guest Damaged Your Place

Document first, pursue the guest through the platform, and count your deadlines from the guest’s checkout date.

Tool 3: A Guest Damaged My Place: The First 14 Days

1. Document before you clean or repair. Take dated photos and video, and keep receipts and the original purchase records.
2. Message the guest through the platform and ask for payment there. Under Airbnb’s terms, the guest is the first one responsible.
3. Know your deadlines. Airbnb’s terms set 14 days from checkout to pursue the guest and notify Airbnb, and 30 days from checkout to file the payment request (Sections 3.1 and 3.3). Count from the guest’s checkout date, not from the day you found the damage.
4. Give your own insurer notice if your policy requires prompt notice of a loss, even if you expect the platform to pay.
5. Keep everything in one folder: messages, invoices, and the request reference number.
6. If it’s denied, ask for the reason in writing, check the terms’ dispute process, and compare the outcome against your own policy.

Table 3: The damage-request clock (Airbnb)

Deciding whether to use your own policy or pay out of pocket is a separate question: see Insurance Claim or Pay Out of Pocket?

A Guest Got Hurt: Who Pays?

It depends on which policies respond, your own liability coverage, the platform’s liability insurance, and any umbrella, and the order is not the same for everyone.

• INSURANCE Airbnb: Host liability insurance, up to $1 million per stay, responds to your legal liability and includes defense costs for formal complaints. Hosts with six or more active listings may find it applies as excess. Not disclosing other insurance may affect coverage.
• INSURANCE Vrbo: $1 million of liability insurance for eligible bookings, described as working alongside your own liability policy.
• NOT COVERED Your own homeowners policy, if its business exclusion applies to hosting. In that case there may be nothing underneath the platform’s coverage.
• INSURANCE A home-sharing endorsement can add liability coverage. Trade-press analysis of the ISO 09 22 form describes it as primary over platform-provided protection, but your insurer’s wording governs.

“Who pays first” has no single answer. Read your policy and the platform’s terms together, and ask your agent question 3 below. An umbrella policy sits above your underlying policies, and some exclude rental activity: see Umbrella Insurance and Excess Liability vs. Umbrella.

If someone is hurt, report it to your insurer and the platform promptly, and talk to a licensed attorney if you receive a demand letter or a lawsuit. Other platforms create similar gaps: see The Rideshare Insurance Gap.

Local Permits, Mortgages, and HOAs

Many cities require a permit to host, and some require proof of liability insurance before they issue it.

For example, the City of Indio, California’s municipal code requires proof of general liability insurance covering short-term rental use of not less than $1,000,000, at both initial and renewal permit issuance, and says a failure to maintain it results in suspension of the permit. Requirements differ by city, so read your own local code. Source: Indio Municipal Code, short-term rentals, accessed November 3, 2026.

Keep a certificate of insurance with your permit file, and ask your insurer to confirm in writing that the policy covers short-term rental use.

Check your mortgage terms and any HOA covenants before you list, since both can restrict rental use. Never hide hosting from a lender or an HOA. If a guest refuses to leave, see Squatters’ Rights by State.

Insurance for a business that grows past hosting is covered in Small Business Insurance.

Questions to Ask Your Agent

These six questions get you written answers about how your own policy treats hosting.

Tool 2: Questions to ask your insurer or agent

1. Does my policy treat paid home-sharing as a business activity? Where is that wording?
2. Is there a home-sharing endorsement for my home and state? What does it add, and what limits apply (nights, rooms, guests)?
3. If a guest damages my property or is injured, which coverage responds first: my policy or the platform’s?
4. Are bookings outside Airbnb (Vrbo, direct) treated the same way?
5. Does my umbrella policy exclude rental activity?
6. Can you confirm my answers in writing?

Frequently Asked Questions

Sources and Access Dates

All pages accessed November 3, 2026. Terms and filings change.

• Airbnb, Host Damage Protection Terms (help article 2869), last updated August 1, 2026.
• Airbnb, Host liability insurance (help article 3145), last updated June 30, 2026.
• Airbnb, Earnings Protection insurance for US home hosts (help article 4021) and Airbnb Newsroom announcement.
• Washington Office of the Insurance Commissioner, press release on the Airbnb fine and consent order, May 2023.
• Insurance Journal, Washington Commissioner Fines Airbnb for Acting as Unauthorized Insurer, May 16, 2023.
• Insurance Journal, Virginia Says Airbnb Lacks Insurance License to Offer Host Damage Protection Plan, June 12, 2026, and Claims Journal, June 15, 2026.
• NAIC, Insurance Implications of Home-Sharing: Regulator Insights and Consumer Awareness, adopted December 13, 2016, and the NAIC consumer insight on home-sharing rentals.
• ISO home-sharing forms (HO 06 6x series), as analyzed by PropertyCasualty360: broadened coverage analysis, endorsement list and the 2017 endorsement analysis.
• Vrbo, $1M Liability Insurance.
• City of Indio, California, short-term rental code.