Airbnb and similar short-term rental services have become increasingly popular in recent years, especially in states like Florida. Staying in a fully furnished home or condo is often preferable to sharing walls with a bunch of other tourists in a hotel. It also lets people stay closer to their ultimate destination, like Florida’s beaches.

Unfortunately for both travelers and property owners, a lot can go wrong on vacations. People may party too hard and get sick, or drunkenly stumble down a staircase and break a leg. Alternatively, they might just damage the property, leaving the owner with a mess and a high repair bill.

What exactly are the liabilities and responsibilities of short-term rental ownership? Who pays for injuries or damages when they occur?

Short-Term Rental Injuries

Premises liability laws are similar on all properties. The property owner isn’t liable for a guest or visitor’s intoxication or clumsiness in most cases. If someone injures themselves on your property because they were drunk, you likely won’t be liable for their injuries, especially if you weren’t there and you didn’t serve them the alcohol.

The situation may be different if their drunken injury was caused in part by a property defect. If the staircase in your Airbnb had a loose banister that broke when someone grabbed it to brace themselves, you might be liable for the resulting injuries.

As with all premises liability claims, it fundamentally comes down to whether the defect was the cause of the injury. If the fall and the subsequent injury would not have occurred had the banister not broken, you could be liable.

Intoxication can complicate matters for the plaintiff. Personal responsibility is a frequent defense in premises liability cases. Plaintiffs may have trouble holding a property owner responsible for their injuries if carelessness or distraction played a role in the accident. The insurance company may be able to successfully argue that the guest wouldn’t have lost their balance had they been sober.

Premises liability cases frequently require investigation to determine exactly what happened and who is ultimately responsible. If you’re trying to file a claim against a short-term rental owner, you may benefit from speaking with a lawyer about your situation.

Can the Insurance Company Deny a Claim if I’m Not Occupying My Home and a Tenant Is Injured?

Maybe – if you don’t inform your insurance company that you are renting out your home and a tenant or guest is injured and files a claim, it may be denied. It’s important to inform your insurance provider of changes to home occupancy.

Even if you are leaving a home empty for a long period of time, it’s necessary to let your insurer know. There are unique risks to unoccupied homes – like vandalism, fires or water damage – which is why your coverage needs may be different if the house is empty.

Do Short-Term Rental Owners Need Special Insurance Policies?

Yes – if people are paying to stay on your property, then you are technically renting it out and will require special insurance. Your normal homeowners insurance policy will not suffice.

There are a variety of insurance companies that offer short-term rental policies, and your existing home insurance company may offer policy add-ons to cover your rental liability.

Do Short-Term Rental Companies Offer Coverage?

Some of them do. Airbnb offers host damage protection that covers:

• Damage caused by guests
• “Unexpected” cleaning expenses resulting from guest “behaviors” (you can use your imagination)
• Lost income resulting from needing to repair or clean a property due to previous guest damage

The Airbnb policy doesn’t cover any of the normal things homeowners insurance or flood insurance covers, like water damage, guest injuries, fires, etc. It’s specifically intended to cover events that would only arise through hosting Airbnb guests.

However, Airbnb does offer their own additional liability coverage for an added price. This $1 million policy covers more traditional liability claims like bodily injuries (for paying guests and their visitors), guest property damage (like if a guest’s luggage is stolen from your property) and damage caused by your guest to common areas.

For example, if you Airbnb a condo in Florida and your guests vandalize a communal pool area, this liability insurance would pay for the damages on your behalf.

Alternative Insurance Options

Many insurance companies offer short-term rental insurance policies to cover traditional types of property damage and liability claims. There are even some short-term rental companies that specialize in insuring rental properties or rarely occupied vacation homes in areas with high natural disaster risks, like Florida.

Short-term rental liability and property insurance is a big business, so owners have a lot of options. You should shop around and find the solution that offers the most comprehensive coverage at the best rates.