Key Components of Liability Insurance Policies

Homeowner’s Insurance

If you frequently rent out your home or another property through Airbnb, it’s important for you to protect it with an appropriate homeowners insurance policy. While home rental can be an excellent source of surplus income, it also means additional precautions that should be taken.

Understanding Homeowner’s Insurance

According to, the key components of homeowners insurance policies are the following:

  • Protection for your homes structure
  • Coverage for the contents of your home
  • Protection against liability

Liability insurance is often overlooked; however, it is an important part of protecting not only your property but also your assets. In fact, it’s crucial coverage if you rent out your home.

Protecting Against Injuries While You’re Away

Liability insurance for Airbnb can protect you against lawsuits that might be filed due to bodily injury suffered on your property by renters. Some of the common (and serious) injuries that tenants may sustain include penetrating injuries, broken bones, and traumatic brain injuries. In the event that an accident does unfortunately occur, liability insurance can cover a variety of medical costs:

  • Required medical and surgical expenses
  • Dental work
  • Ambulance rides
  • Prosthetic devices
  • Hospital costs
  • X-rays, CT scans, and MRIs
  • Professional nursing services

Liability insurance can also cover any punitive damages that might stem from a lawsuit.

Obtaining Appropriate Coverage

If you rent your home out regularly, liability insurance is a must-have. Talk with your agent about the right plan for you, and remember that most liability insurance policies have a limit to the amount they will cover. Make sure you have enough coverage for your property.