Chapter 6

Airbnb Insurance

For insurance purposes, Airbnb offers two forms of protection for its users – the Host Guarantee and Host Protection Insurance.

One of the main concerns that rental property business owners have is the risk of liability claims being issued against them. This is by way of third-party claims that can relate to someone becoming injured or property damage occurs.

Most homeowners already have adequate insurance in place for such situations, but if they are becoming an Airbnb host, it may be beneficial to extend the protection. Regular insurance policies may not cover the rental aspects of the property and potential guests’ damage.

Airbnb has made it easy and convenient for hosts to use these rental business services with peace of mind and confidence.

Airbnb Host Protection Insurance

Airbnb is able to offer primary insurance protection to over 15 countries which is comprised of liability protection for up to $1 million USD. This is only applicable to claims that occur in Airbnb listings during the course of the time a visitor is using the property.

While it is important to have and maintain proper homeowner insurance for your rental property business, the coverage provides you with protection concerning your Airbnb dealings. If an incident occurs during a guest’s stay, then the Airbnb insurance will provide the primary coverage for the costs that qualify, as opposed to you having to rely on your regular insurance provider.

What Doesn’t the Airbnb Insurance Cover?

Like many standard property insurance policies, there are some liabilities that are excluded. With the Airbnb Host Protection Insurance Program, any liabilities arising from the following are not covered:

  • Intentional Acts including:
    • Assault and Battery
    • Sexual Abuse or Molestation – (by the host or any other insured party)
  • Loss of Earnings
  • Personal and Advertising Injury
  • Fungi or Bacteria
  • Chinese Drywall
  • Communicable Diseases
  • Acts of Terrorism
  • Product Liability
  • Pollution
  • Asbestos, Lead or Silica.

Is the Host Protection Insurance Program free?

The Airbnb Host Protection Insurance program is automatically put in place for all hosts at no additional cost. Whenever you list a property or rent a property through Airbnb, you are automatically agreeing to be covered under this insurance. The company itself has obtained a policy through a leading insurance provider and pays the insurance premiums. If a claim has to be made by a host, it is taken care of by a claims adjustor as mandated by the policy agreement.

Airbnb Host Guarantee

Allowing guests to stay in your vacation rental does come with some risks. Owners who are using the vacation property platform are discovering that some of these risks can be greatly reduced. This is done using the Airbnb Host Guarantee.

This is an Airbnb program that can help with the protection against damages, and one of the biggest risks that come with having a vacation business. For those who want to become a host on Airbnb, it means that they will be automatically covered with this free program. It consists of USD $1,000,000 worth of protection, giving every proprietor better peace of mind.

For the most part, travelers that use the Airbnb platform to check out vacation rental property are responsible people. This, in itself, reduces the property damage risk, but there can always be an exception. This is exactly the reason why Airbnb has put the host guarantee in place.

Owners are always on the lookout for the best resources to cover their property to help reduce the costs of damage. This means making sure they have the proper insurance in place for their vacation rental property.

What Does The Host Guarantee Cover?

It doesn’t matter where an owner may be renting from; the host guarantee is in effect. What is important to realize is that hosts must still be sure that they have their regular insurance in place. The protection program that Airbnb is offering is to be used in addition to regular property insurance. There are detailed rules and regulations as to what this extra insurance will cover. It is up to the hosts to independently check these out so they have a clear understanding.

In most cases, the owner will stipulate the house rules for any traveler that will be using their home. These rules help to reduce the amount of damage that could take place. For the most part, guests will abide by these rules. There can, however, be some circumstances where damage has innocently occurred.

What Doesn’t the Airbnb Host Guarantee Protect?

While the Airbnb Host Guarantee will give owners protection for up to one million dollars in damages, no matter where they are in the world, there are certain exclusions to what this cover entails.

The Airbnb Host Guarantee will not protect the following:

  • Cash and securities
  • Pets
  • Personal liability
  • Shared or common areas

To ensure you are fully protected, it’s always a good idea to have renters or homeowner insurance as well as the insurance provided by the site. Additionally, whenever you are renting your home to guests, be aware of the risks that come with it, and remove any valuable, irreplaceable items such as jewelry, original artworks, and collectors’ pieces and think about introducing a security deposit to the price you charge.

Responsible Protection

Every host wants to be sure that their accommodation is appealing to a guest. For this reason, they will use artwork, for example, to create a nice appearance. The best step to take here is not to use expensive artwork for decoration purposes. If there are expensive pieces of art in the rental home, then it might be a good idea to remove them and replace them with less valuable ones. The host guarantee may offer some limited protection for artwork, along with collectibles and jewelry. These again are items that can be easily removed before a traveler arrives to avoid any unnecessary risks.

Hassle-Free Claim

If an owner has to make a claim to activate the host guarantee as a result of hosting to a traveler where damage has occurred, the process is not difficult.

First, if it appears to be an emergency, the proper authorities should be contacted first. Then, following this, the host should immediately contact the customer service department.

In some cases, rather than a host having to submit a claim, they can negotiate with a guest for a settlement. In this case, no further action needs to be taken.

The timing for submitting a claim is important. It has to be done no later than fourteen days after the guest has checked out of the building. Or, before the next customer is going to check in, whichever happens, to take place first.

Once the claim has been submitted then Airbnb personnel will work with the host to ensure the payment process is carried out efficiently.

Differences between the Airbnb Host Guarantee and the Host Insurance

The Airbnb Host Guarantee is not insurance. It is an extra program offered to homeowners in order to help prevent loss from property damage that may occur to the host’s personal property as a result of an Airbnb guest staying at their rental space.

This means that hosts can use the vacation rental platform with confidence, knowing that they are automatically being covered by both the additional insurance provided at no additional cost (Airbnb Host Protection Insurance Program) and the Airbnb Host Guarantee. Furthermore, hosts also have the option to ask for security deposits which will provide protection of a more minor nature.

This extra liability coverage tackles the concerns that vacation rental homeowners have when wanting to rent out their property, but are worried about it affecting their home insurance. With the added assurance they are adequately protected, the platform is encouraging many vacation rental owners into becoming hosts.