My neighbor is tired of the rolling suitcases and Uber doors slamming. He hasn’t sued for damage; he is suing for “Loss of Quiet Enjoyment” and “Nuisance,” demanding $50,000 and an injunction to shut me down. My insurance carrier sent a letter saying, “We cover bodily injury and property damage. We do not cover nuisance lawsuits.”
Key Takeaways
- Bodily Injury vs. Personal Injury: Nuisance is not “Bodily Injury” (a broken bone). It falls under “Personal Injury” (wrongful entry, invasion of rights).
- The “Business Pursuits” Exclusion: Even if you have Personal Injury coverage, the insurer will deny it because the nuisance is caused by your business (the Airbnb).
- Defense Costs: The real cost here is the lawyer. A nuisance suit can drag on for years. You need a policy with a “Duty to Defend” non-physical claims.
- AirCover’s Gap: AirCover is designed for guest issues. It is very weak when it comes to neighbors suing you for the existence of your listing.
The “Why” (The Trap)
The trap is “Property Damage vs. Economic Loss.”
The neighbor isn’t claiming you broke his fence. He is claiming you lowered his property value and ruined his peace. Standard liability policies cover accidents. They do not cover the consequences of your business operations. Without a Commercial General Liability (CGL) policy, you have no defense.
The Investigation: I Called Them
- Proper Insurance: Their CGL policy covers “Personal and Advertising Injury.” I asked, “Does this cover a neighbor suing for nuisance?” They said yes, they provide legal defense for these claims, provided you aren’t breaking local zoning laws.
- Allstate: “We don’t cover business disputes. If a neighbor sues because they don’t like your Airbnb, that’s a business risk.”
- Airbnb AirCover: Terms focus on “Third Party Bodily Injury/Property Damage.” A nuisance claim is neither. I found zero evidence of AirCover defending a host in a “Loss of Enjoyment” suit.
Comparison Table: Nuisance Lawsuit Defense
| Feature | Commercial CGL (Proper) | Standard Homeowner | Airbnb AirCover |
| Nuisance Defense | YES | NO | NO |
| Wrongful Eviction | YES | NO | NO |
| Zoning Violations | NO (Illegal acts excluded) | NO | NO |
[IMAGE: Photo of a legal ‘Cease and Desist’ letter on a table with a ‘NoiseAware’ sensor in the background]
Step-by-Step Action Plan
- Check Zoning: If you are operating illegally (no permit), NO insurance will cover you. Illegal acts are uninsurable.
- Install Noise Monitoring: Use Minut or NoiseAware. Having a data log proving you were quiet is your best defense evidence.
- Get CGL Coverage: Ensure your policy includes “Personal and Advertising Injury.”
- Talk to the Neighbor: Mediation is cheaper than litigation. Offer to install soundproofing or a fence.
FAQ
Can I countersue the neighbor?
Yes, for harassment, but that costs money. Insurance won’t pay for your offensive legal fees, only your defense.
Does an Umbrella policy help?
Maybe. Some umbrella policies have broader “Personal Injury” definitions. Check the fine print for “Business Pursuits” exclusions.
What if they call the cops 50 times?
Document it. That is harassment. But again, insurance doesn’t solve this; a lawyer does.