Short-term rentals have been gaining popularity in the pandemic as homeowners look to these spaces as private getaways. For Airbnb, the average length of stays at its host homes has increased to six days and rural units are being booked more frequently since the pandemic. Some hosts have converted their units into long-term housing to accommodate the growing demand.
QuoteWizard, a company that offers insurance quotes and resources, recently looked at the states that have the most active Airbnb listings per 100,000 residents during 2020. They also factored in occupancy rates to determine the top states for Airbnb stays. The following states had the highest rate of Airbnb listings and occupancy since the COVID-19 pandemic:
1. California
- Active Airbnb listings: 158,521
- Occupancy rates: 53%
2. Florida
- Active Airbnb listings: 153,846
- Occupancy rates: 55%
3. New York
- Active Airbnb listings: 83,964
- Occupancy rates: 49%
4. Texas
- Active Airbnb listings: 70,038
- Occupancy rates: 48%
5. Colorado
- Active Airbnb listings: 42,063
- Occupancy rates: 47%
6. Georgia
- Active Airbnb listings: 38,263
- Occupancy rates: 49%
7. North Carolina
- Active Airbnb listings: 34,653
- Occupancy rates: 49%
8. Arizona
- Active Airbnb listings: 27,370
- Occupancy rates: 49%
9. Washington
- Active Airbnb listings: 25,546
- Occupancy rates: 52%
10. South Carolina
- Active Airbnb listings: 24,990
- Occupancy rates: 49%
As occupancies of short-term rentals become a bigger business for some home-sharing hosts, they’re realizing insurance is a critical piece to protect their investments. Short-term rentals are posing some insurance questions for owners and guests. For example, QuoteWizard says that Airbnb guest homes don’t fit under commercial business properties but aren’t traditional single-family homes either, which leads to insurance questions. Home-sharing hosts are turning to short-term rental insurance, landlord insurance, and business property insurance. Additional homeowner insurance coverage options also may be available, QuoteWizard says.
Source: “Insuring an Airbnb Home,” QuoteWizard (Jan. 28, 2021)
