25d (edited) • General discussion
Type of insurance required for your STR.
After renewing my insurance policy I noted the requirements for STR's is a little bit differet than your normal home insurance policy. Please take this into consideration when you are doing your projections.
The difference comes down to how the property is being used.
If you’re operating an Airbnb under BTB licensing, your insurance must reflect that the property is being used for commercial tourism purposes, not just personal residential use.
Here’s the breakdown:
Regular Home Insurance (Residential Policy)
What it covers:
Fire
Theft
Natural disasters (depending on policy)
Damage to the structure and your belongings
What it assumes:
The home is for private residential use
No paying guests
No commercial activity
Important:
Most standard home insurance policies exclude business or short-term rental activity.
If a paying guest gets injured and you only have residential coverage, the insurer can deny the claim.
2️⃣ BTB-Compliant / Short-Term Rental Insurance
This is typically either:
A commercial property policy, or
A residential policy with a short-term rental endorsement, or
A policy specifically written for tourism accommodations
What it covers:
All regular property risks (fire, storms, etc.)
Public liability coverage for paying guests
Injury claims (slip & fall, pool accidents, etc.)
Guest property damage claims (depending on policy)
Why BTB requires it: Because once you host tourists, you are operating a business, not just a home.
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Type of insurance required for your STR.
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