Insurance is important, particularly when you are running a business. And operating an Airbnb is essentially a business. Most cities and states require Airbnb hosts to obtain a license or permit, follow laws and regulations governing short term rentals, and pay taxes.
Airbnb offers its accommodation hosts AirCover, an insurance / protection program that covers both liability and property damage and has evolved over the years since its pioneering entry into the OTA market. AirCover automatically applies to all hosts, regardless of whether they have obtained other forms of insurance policies or not, and consists of:
Host Damage Protection
Host Liability Insurance
AirCover also includes liability insurance for hosts of an Airbnb Experience.
Airbnb Host Damage Protection
What is Airbnb Host Damage Protection?
Airbnb Host Damage Protection (previously Airbnb Host Guarantee) is a property damage protection program for hosts. It provides coverage of up to $3,000,000 to hosts for damages caused by guests and their pets during their stay that exceed the security deposit amount or if no security deposit has been requested. The program covers hosts for damages from the time of check-in until check-out.
What does Airbnb Host Damage Protection Cover?
The Host Damage Protection program covers hosts for:
Damages caused by an Airbnb guest (or others) to your property
Damages caused to your belongings by a guest (or others). These now include some (not all) fine art, jewelry, and collectibles, which may be repaired or replaced at appraised value if damaged
Damages caused to your property or belongings by a guest’s pet. These now include some (not all) fine art, jewelry, and collectibles, which may be repaired or replaced at appraised value if damaged
Damages caused to cars, boats, and other watercraft parked or stored at your property
Unexpected cleaning costs due to the behavior of a guest (or others)
Income lost if you are forced to cancel confirmed future Airbnb bookings due to damage caused by a guest (or others)
Keep in mind, Host Damage Protection does not cover costs that are meant to be covered by the cleaning and/or pet fees that you charge. Rather it covers unexpected costs related to additional cleaning such as cleaning out smoking odors in a non-smoking Airbnb or damage by a pet such as having to replace a chair that was chewed up by a guest’s dog.
What does Airbnb Host Damage Protection Not Cover?
The Host Guarantee program doesn’t cover hosts in the case of:
Theft of cash and securities such as money, savings bonds, and stock certificates
Theft of host’s pets or livestock
Damage to property and/or belongings from ordinary wear and tear
Damage to property and/or belongings from acts of nature like earthquakes and hurricanes
Personal liability due to bodily injury to guests or third parties
How does Airbnb Host Damage Protection Work?
If you experience any of the damages covered under the Host Guarantee program, you can file a claim.
Collect evidence of the damage caused. This can take the form of photographs and videos, as well as estimates and receipts of repair.
File an AirCover for Hosts request through the Airbnb Resolution Center within 14 days of the responsible guest’s checkout.
The guest has 24 hours after your submission to pay.
If the guest does not respond or refuses to pay the full amount, you can contact Airbnb Support. Make sure you contact and submit your evidence to Airbnb Support within 30 days of the damage or loss occuring.
Airbnb claims to have fast tracked its reimbursem*nts to hosts, typically paying within 2 weeks. Further, Superhosts get access to a dedicated support line and priority in both claim routing and reimbursem*nt.
Key Takeaways
Make sure you are familiar with the fine print of the Host Damage Protection program as soon as you list on Airbnb. This will ensure you are aware of its terms, conditions and exclusions prior and know what can and cannot be reimbursed. As stated by Airbnb itself, Host Damage Protection is not an insurance policy.
Also note, Host Damage Protection does not apply to Airbnb hosts in mainland China and Japan, hosts of Airbnb Experiences as well as those who offer accommodations through Airbnb Travel LLC. The Host Damage Protection program does however apply to all stays booked on Airbnb, including open homes stays.
Airbnb also provides a 24-hour safety line through the app. If hosts ever feel unsafe they will be provided with specially-trained safety agents, day or night.
Airbnb Host Liability Insurance
What is Airbnb Host Liability Insurance?
Airbnb Host Liability Insurance (previously known as Host Protection Insurance) is a primary liability insurance program. It covers the legal responsibility of a host and people who help the host, such as co-hosts and cleaners, to a guest or third party who gets hurt or has their property damaged or stolen during their stay at the Airbnb. The insurance program provides liability coverage of up to $1,000,000. As a primary liability insurance, it generally applies first, regardless of the other insurance policies the host may have obtained.
What does Airbnb Host Liability Insurance Cover?
Airbnb Host Liability Insurance covers the legal responsibility of hosts and people who help them host, like co-hosts and cleaners, in the case of:
Bodily injury to a guest (or others)
Damage to property belonging to a guest (or others)
Theft of property belonging to a guest (or others)
Damage caused by a guest (or others to common areas like lobbies and neighboring properties
during the length of the guest’s stay at the host’s Airbnb (from check-in until check-out).
Airbnb Host Liability Insurance covers all types of locations including residential property, mobile homes, buses, airstreams, watercrafts, treehouses, yurts, and other such unique locations that are parked and used as accommodation.
The insurance also includes coverage for claim investigation costs and expenses as well as costs of defending a formal complaint such as a lawsuit.
What does Airbnb Host Liability Insurance Not Cover?
Airbnb Host Liability Insurance does not cover hosts for:
Bodily injury to guests and/or third parties that are not a result of an accident (i.e. intentional harm)
Damage to guests’ or third parties’ property that is not a result of an accident
Damage to host’s property and/or belongings caused by a guest (or others)
Expense or loss as a result of assault or battery, directly or indirectly, committed or alleged to have been committed by an insured party
Bodily injury, property damage, or other loss arising out of the actual or alleged transmission of a communicable disease
Cross suits, i.e. any claims brought by one insured party against another
Damage due to loss of, loss of use of, damage to, corruption of, inability to access or inability to manipulate electronic data
Loss or expense due in any way to sexual assault of any person committed or alleged to have been committed by any insured party
How does Airbnb Host Liability Insurance Work?
If you have experienced any of the above-mentioned incidences covered by the Host Liability Insurance program, you can file a claim.
Complete the Host Liability Insurance intake form
The information is sent to Airbnb’s third-party insurer
The insurer appoints an adjuster to review your claim
The adjuster will get in touch with you to discuss the claim and gain more information
The adjuster investigates the claim you have filed
The claim is settled in keeping with the terms of the Host Liability Insurance policy as well as any laws and regulations applicable in your area.
How Do I Enroll in the Airbnb Host Liability Insurance program?
There is no need to apply. All Airbnb hosts, all over the world, are automatically covered under AirCover and its Host Liability Insurance as soon as they list a property on Airbnb. (Airbnb’s Host Liability Insurance does not apply to hosts in Japan and mainland China as well as hosts who offer accommodation through Airbnb Travel LLC and those who host Experiences.)
How Do I Opt Out of the Airbnb Host Liability Insurance program?
Hosts can choose to opt out of the program at any time by emailing Airbnb at [email protected] with a request to do so. Make sure you:
Use the same email address associated with your Airbnb host accountInclude your full nameInclude the phone number associated with your Airbnb host accountInclude the exact title of your listing
Airbnb hosts in the UK however cannot opt out of the Host Liability Insurance program.
Key Takeaways
Like any insurance program, Airbnb Host Liability Insurance is subject to policy terms, conditions, and exclusions. Don’t wait until you need to file a claim to read the fine print. To learn more, read the comprehensive program summary.
Airbnb also provides a 24-hour safety line through the app. If hosts ever feel unsafe they will be provided with specially-trained safety agents, day or night.
Conclusion
Whether you rely on Airbnb insurance exclusively or have additional protections, your best bet is to protect yourself from such incidents occurring in the first place. Making a habit of screening your guests is a crucial preventive measure as is ensuring they sign a short term rental agreement prior to stay. Opting for external insurance is also highly advisable as it can protect you during incidences not covered by Airbnb such as theft and excluded belongings and property. You can also opt in for protections that are relevant to your Airbnb vacation rental’s location such as coverage for natural disasters. For a detailed understanding of vacation rental insurance including types of coverage and cost, check out our Guide to Vacation Rental Insurance.
