What Hosts Need to Know About Airbnb Insurance

An Airbnb investment could help you earn extra income. But as a property owner, you should understand what Airbnb's insurance for hosts, known as AirCover, can protect. Hosts should carefully review what is included, such as liability coverage and property damage, and maintain accurate records about their guests in order to prosecute any legal claims that may arise.

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What Is an AirCover for Hosts?

Airbnb’s AirCover for Hosts is a comprehensive insurance program designed to provide added protection for hosts. AirCover for Hosts and its benefits are always included and always free. AirCover includes two primary components: Host Damage Protection and Host Liability Insurance. Together, these protections aim to safeguard hosts from various risks associated with short-term rentals .

Host Damage Protection

Host Damage Protection under AirCover offers coverage for damage to your property caused by guests. This includes up to $3 million in coverage for the property, furnishings and any vehicles on site, as well as extra cleaning fees and lost rental income. This protection extends to damage from incidents such as fire, water damage or theft, though there are restrictions on things like natural disasters or damages resulting from ordinary wear and tear.

Host Liability Insurance

Host Liability Insurance, the second key component of AirCover, offers up to $1 million in liability coverage . This protection is designed to cover hosts in case a guest or third party is injured during their stay, or if there is damage to a guest's belongings. For example, if a guest slips and falls on the property, or if a neighbor's property is accidentally damaged, this insurance helps cover the associated costs, including medical bills or legal fees. There are several exclusions , including intentional damage or damage caused by intoxicated persons, that hosts should familiarize themselves with if they intend to seek supplemental coverage.

Filing a Claim

To file an AirCover for Hosts liability claim or damage protection reimbursement request, start by documenting the incident thoroughly. Take clear photos of any damage or injuries and gather any relevant receipts or estimates. Next, go to the Airbnb app or website and navigate to the Resolution Center. From there, select the reservation in question and follow the prompts to file a claim. You'll be asked to provide details about the incident, including the evidence you've gathered.

For Host Damage Protection claims, submit your request within 14 days of the guest's checkout or before the next guest checks in, whichever is earlier. For liability claims, contact Airbnb support directly as soon as possible. Airbnb's team will review the claim and communicate with you regarding any additional information needed and the next steps.

Other Ways Airbnb Hosts Can Protect Themselves

While Airbnb’s AirCover for Hosts provides some protection, hosts should consider different types of insurance to ensure comprehensive coverage, like maintaining a homeowner's insurance policy that includes short-term rental coverage. Many standard homeowner's policies exclude rental activities, so it’s important to add a rider, or purchase a separate policy, that covers the gaps in Airbnb's protection or can supplement costs if Airbnb only covers a portion of the damages.

Another option is to invest in insurance for short-term rentals that is specifically designed for Airbnb hosts. These policies can offer broader coverage, including protection against guest-caused damage not covered by AirCover, loss of income due to cancellations, and even extended liability beyond the $3 million limit.

Are There Short-Term Rental Insurance Laws?

Short-term rental regulations vary widely across states and countries, influencing the type of insurance coverage hosts need.

In the United States, local laws like New York City's short-term rental regulations often have strict rules governing short-term rentals that require hosts to register their properties and carry specific liability insurance. Some cities mandate additional coverage to address potential damage to neighboring properties or common areas in multi-unit buildings.

In Japan, the “Minpaku” law regulates short-term rentals, requiring hosts to register with local authorities and comply with specific insurance requirements. In European countries like France and Germany, hosts may need to secure both homeowner's insurance and specialized short-term rental insurance to comply with local laws.These regulations often include coverage for guest-related incidents and damages to ensure both hosts and neighbors are protected. Failure to comply can result in fines and legal action.

Bottom Line

Understanding Airbnb insurance for hosts is a key step in safeguarding your property. While Airbnb's AirCover provides protection through Host Damage Protection and Host Liability Insurance, supplementing this coverage with homeowner's insurance or specialized short-term rental insurance can offer more comprehensive protection. Additionally, reviewing local regulations regularly will help you avoid hefty fines or unwanted legal liability. Consulting a real estate advisor can offer you more insight into Airbnb rules and regulations, as well as how these costs factor into your overall financial goals.

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