Congratulations on your purchase. The property is bought. The inspection is done. The closing is complete. You've already taken out homeowner's insurance because your lender required it. Now you're listing your property on Airbnb. Your first guests are already booking. Everything is moving fast.
And suddenly you realize: "What about insurance for this?"
You have no idea where to start. Your insurance agent seems confused when you ask. The Airbnb website mentions AirCover but you're not sure if that's enough. You don't know what questions to ask.
Here's exactly what you need to do.
Step 1: Understand What You Currently Have
Read your homeowner's policy. It's probably a 30+ page document. You don't need to read all of it. Just focus on three sections: The Coverage Exclusions, The Liability Section, The General Exclusions.
Then call your insurance agent. Ask this specific question: "If a paying guest is injured at my property during an Airbnb stay and files a liability claim against me, am I covered by this policy?"
Listen to the answer. Push back if they're vague. You want a clear yes or no. And ask them to put it in writing.
If the answer is no (which it almost certainly will be), move to Step 2.
Step 2: Understand AirCover
Go to Airbnb's website and find their AirCover page. Read the terms directly. Don't rely on summaries. Read what Airbnb actually says.
Focus on three things: What it covers, What it excludes (specifically look for "ordinary negligence" exclusion), What it doesn't apply to.
Ask yourself: "If a guest gets injured due to my failure to maintain something, does AirCover cover it?" The answer is no.
Step 3: Understand Your Gap
Now you know: Your homeowner's policy: Doesn't cover commercial activity (so STR claims are excluded), AirCover: Covers some things but excludes ordinary negligence claims, Your liability limit: Probably $100K-$300K (which might not be enough for a serious injury).
The gap is everything not covered by those two. That's your exposure.
Step 4: Close the Gap
Find STR-specific insurance. Call your agent. Ask them if they offer STR coverage. If they don't, find an agent who does.
What to ask for: Commercial liability coverage ($1M minimum), Coverage for ordinary negligence claims, Coverage for property damage from guests, Loss of rental income coverage, Coverage for both platform and off-platform bookings, Clear statement that it covers STR/Airbnb activity.
Don't buy based on price alone. Buy based on coverage that actually protects you.
What Happens If You Don't
A guest gets injured. You call your homeowner's insurer. They deny the claim (commercial exclusion). You call Airbnb about AirCover. They review it. They deny it (ordinary negligence exclusion).
Now you're personally liable. The guest sues. You hire an attorney. You go through discovery, depositions, potentially trial. Your costs mount: $20K, $30K, $40K in legal fees before the case settles.
The settlement is $50,000. Your legal costs are $35,000. Your total out-of-pocket: $85,000. And you're out of business because your property was the subject of a lawsuit.
Or, you had proper STR coverage. The claim comes in. Your insurance company assigns an adjuster and defense counsel. They handle it. They negotiate. The settlement is $50,000. You pay your deductible ($1,500). Done.
The difference is $83,500.
The Timeline
Do this before you have your first guest. Not after. Not when a claim happens. Before.
It takes a few hours. It could save you hundreds of thousands of dollars. Get your free risk score now to understand your exposure before you have your first guest.
Threshold STR guides new hosts through exactly this process. A free audit score takes five minutes and shows you your exposure. A professional audit takes a few hours and tells you exactly what coverage you need.