Airbnb Insurance for Hosts

Being an Airbnb host can help you earn extra income, but what if something happens to your vacation rental property when you open it to temporary guests? It’s essential to protect your property against damage and yourself against personal liability claims with the right insurance coverage.

So, if you’ve decided to rent out your home on Airbnb, you might be wondering how much insurance coverage you need to protect your assets and if there is Airbnb insurance available for homeowners.

Airbnb provides protection for hosts in the event of an incident at their property. However, you shouldn’t rely solely on Airbnb if something goes wrong. In this article, we discuss what they offer, what they don’t cover, and how to protect yourself.

You may also want to check out tips on how to avoid complaints from Airbnb guests.

AirCover for Hosts: How Does It Protect You?

Airbnb started offering insurance for hosts in 2011. It was called Host Guarantee, protecting the host’s property from damage caused by Airbnb guests. In November 2021, Airbnb introduced a new program called AirCover for Hosts. In May 2022, the company also added AirCover for Guests, which is included free of charge with every booking. 

So, what is AirCover for Hosts? It’s top-to-bottom protection for Hosts that applies to every booking at no extra cost, and you don’t need to sign up for it—it’s automatically included when you list your property on Airbnb. The program provides coverage for unexpected situations, but it’s essential to note that Airbnb doesn’t refer to AirCover as ‘insurance’.

The AirCover for Hosts program includes guest identity verification, reservation screening, $3M Host damage protection, $1M Host liability insurance, and a 24-hour safety line. The program also includes $1M liability insurance for hosts who offer Airbnb Experiences and Airbnb Services.

Is AirCover for Hosts Available Everywhere?

AirCover, a form of Airbnb insurance, is available free of charge to all hosts on the platform and is designed to give them added confidence. However, it is essential to note that states within the U.S. have their own laws and regulations regarding home-sharing. That means you should be aware of the legal Airbnb requirements for your local area.

Moreover, you must comply with your local laws and the rules of your landlord or condominium board regarding home-sharing services. In some cities, this may require compliance with zoning laws, registration of your STR property, and obtaining commercial permits. You may also be required to pay additional taxes when you rent out your property.

What Is Covered by AirCover for Hosts?

AirCover comes with expanded protection compared to the previous host protection insurance program. It addresses the unique challenges and risks of short-term rentals, offering extensive coverage that includes Host Damage Protection and Host Liability Insurance to ensure a secure and hassle-free Airbnb hosting experience.

That means you’ll be able to focus on providing your guests with the best experience, which requires some time and effort. However, with software tools like Hospitable, you can automate most of your processes and ensure personalized communication with your guests, making them happy.

What Does Airbnb Host Liability Insurance Cover?

Airbnb’s free Host Liability Insurance, formerly known as Host Protection Insurance, is a liability insurance program available to hosts worldwide. It generally applies first, regardless of other insurance policies you may have.

Host liability insurance covers injury or property damage claims made against you by guests or other third parties (for example, neighbors). It may provide up to USD 1,000,000 in liability coverage for a host’s legal responsibility when the host is sued for an incident that occurred during an Airbnb stay. People who help you run your short-term rental business, such as co-hosts and cleaners, are also included in this coverage.

Potential scenarios when you may need this insurance could be when a guest is injured during their stay, thinks you’re responsible for that, and decides to take legal action against you. Or it may happen when your guest accidentally causes damage to common areas, such as a building lobby or a neighboring property, and the neighbor takes action against you. Liability insurance also applies when a guest’s belongings are damaged or stolen while they are staying in your rental property.

But Host Liability Insurance doesn’t cover damage or injury that results from something done intentionally (not an accident), or loss of income. It doesn’t cover damage to your property, either. This is where Airbnb’s Damage Policy comes in.

Airbnb insurance policies protect not only hosts but guests in case anything goes awry during their stay. Accidents happen, and the Host Liability Insurance Policy provides a buffer of insurance coverage in the event a guest is injured and decides to sue.

What Is Host Damage Protection?

Host Damage Protection, a part of AirCover for Hosts, is designed to cover damage to your property and belongings caused by guests staying on your premises, up to $3 million. It covers the following losses:

• Damage to your home, furnishings, valuables, or belongings caused by guests (or their invitees)
• Damage to parked cars, boats, or other vehicles caused by guests (or their invitees)
• Unexpected cleaning costs required to remove stains left by guests, remove cigarette odor if a guest smokes in your home, or pet accidents
• Lost income if you cancel confirmed Airbnb bookings due to guest damage

But unlike Host Liability Insurance, this program isn’t a form of insurance, and it has some significant limitations and exclusions. Host Damage Protection doesn’t cover damage from normal wear and tear, damage caused by natural disasters, or loss of currency.

How to Submit an Airbnb Damage Claim

If an incident occurs, you have a total of 30 days to complete the entire claim process.

• First, you must try to come to a resolution with the responsible guest. You have 14 days after your guest checks out to file an AirCover for Hosts request through Airbnb’s Resolution Centre.
• Your guest will have 24 hours to pay.
• If they decline to pay the full amount or don’t respond, you’ll be able to involve Airbnb Support. You must provide documentation of the incident to Airbnb, including proof of ownership, as well as photos, videos, and descriptions of the damage, along with repair estimates.

If your Airbnb damage claim is successful and you are approved for reimbursement, the money will be returned to you within a reasonable period of time.

Since Airbnb hosts are automatically protected through AirCover for Hosts, Airbnb no longer allows regular hosts to charge a security deposit to guests within the platform. However, hosts who manage their listings with API-connected software, such as Hospitable, are an exception to this policy. They can collect an Airbnb security deposit off the Airbnb platform.

Hospitable now offers a fully automated security deposit solution that works for Airbnb. With this feature, you can set a refundable security deposit amount for each property, which will be collected automatically 2 days before check-in. If no issues are reported, the deposit will be automatically released 2 days after the checkout. Check out our help article to learn more about how this feature works.

The best thing about Hospitable’s security deposit feature is that it is fully integrated with your guest experience, so you don’t need to manually notify your guests about collecting or releasing a security deposit. Hospitable will handle automated notifications and reminders.

Our STR super app also enables you to automate 90% of your guest communication with the help of AI, ensuring they receive the necessary information for their stay at the right time. You can also take advantage of Suggest with AI and Improve with AI tools in your Inbox to draft and correct accurate, personalized responses when you message guests manually.

Airbnb Homeowners Insurance

Homeowners’ insurance may also protect your property from damage related to Airbnb or other home-sharing services. But in most insurance companies, coverage often applies only if you’re renting your property just occasionally. And that term may be defined differently by different insurers. You should consult with your insurer or review your policy to learn more.

It’s important to remember that when a company insures your home, they assume that you and your family will use it. However, they don’t envision the space being used for business purposes. Some insurers view renting your home out through Airbnb as “doing business” and may be unwilling to extend your standard policy to cover business-related losses.

But there are Airbnb homeowners’ insurance options with enough comprehensive coverage for the property that is rented out. They can further protect hosts from damages that would not be covered under normal landlord insurance or business insurance, and will protect your rental income.

You may also want to consider a rental agreement between you and your Airbnb guest to obtain additional legal protection in the event of damage. Implementing rental agreements can also help you avoid misunderstandings between you and your guests, ensuring a positive experience for both parties. If you opt for Hospitable, you can automate this process.

With Hospitable, you can create an agreement template, and our system will generate a new agreement for each reservation, populating it with guest and booking data. Guests will be able to see their rental agreements in their guest portals as a required task before check-in and will be able to sign them digitally.

Watch the video to learn how this functionality works, and refer to our help article for more details.

Final Thought

Protecting your short-term rental property is vitally important; that’s why Airbnb offers hosts financial protection as part of a contract. Airbnb’s AirCover for Hosts provides primary liability insurance coverage up to $1 million for third-party bodily injury or property damage claims.

It also typically protects the hosts from damage that the guests may have caused to the home’s structure. However, it doesn’t cover everything, so those who rent out their places online should still ensure they have sufficient homeowners’ insurance policies.

If you plan to rent your home through Airbnb, you should also consult your insurance provider. You should determine if you need a landlord or business insurance policy for your rental property to ensure you have adequate coverage.