Vacation Rental Guide / What is Airbnb? / Understanding the benefits of Airbnb Insurance

The Airbnb Host Protection Insurance provides up to one million dollars in liability coverage for Airbnb hosts at no extra cost.

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

Taking a look at Airbnb 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.

What coverage can you expect with 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.

How does this Airbnb insurance work with your other insurance providers?

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.

Do Airbnb hosts have to pay extra for the Host Protection Insurance program?

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.

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.

How is the Airbnb Host Protection Insurance Program different from the Airbnb Host Guarantee?

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.

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 jewellery, original artworks and collectors’ pieces.