Airbnb Insurance Coverage and the Host Guarantee Reviews
We get this questions occasionally from new clients or those gearing up to bring their second or third rental online with our Virtual Airbnb Management Service, so we decided to write a post about this and outline briefly what it covers, and what it does cover.
First of all, let’s describe the two different types of coverage that Airbnb provides:
1. The Airbnb Host Guarantee $1,000,000
This is Airbnb’s most famous
coverage protection, although it is important to note that this is NOT Insurance in the traditional sense, and Airbnb is quick to note the same thing:
It certainly is not homeowners insurance, which you definitely must have. Check out our more detailed post on Airbnb VRBO and Homeaway Homeowners insurance options here. The $1,000,00 guarantee will cover damage caused by your guests, that is above your security deposit limit, and which is not covered by your homeowners insurance. Many things are excluded, so be sure to read the terms and conditions very carefully. As of this writing, items such as jewelry, artwork, cash, pets, and any damage classified as “wear are tear” are excluded.
Airbnb also encourages hosts to try and resolve claims with their guests first via the Resolution Tool, however if the damage is over $300 they require you to file a police report as well. If serious damage has been done, you must get on top of it and follow-up right away. You have 14 days, or until the next guests checks in, to file your claim so don’t delay if you find any damage at all caused by the guest.
2. Airbnb Liability Insurance – $1,000,000 Host Protection
This is a relatively new coverage, and only available in certain markets where Airbnb operates. Be sure to check their site to see if you are covered. This policy covers you, should your guest get injured and sue you during their stay. Even better, it acts as “Primary Coverage” if you need it, so you won’t need to use your homeowners policy first, Airbnb’s policy can be activated right away.
A widely cited incident last year, reported by the New York Times here, made headlines when a Texas man was killed by a tree when he was sleeping in a hammock while renting a place on Airbnb. You will need liability insurance if this type of accident happens on your property, and your umbrella or regular homeowners insurance may not cover you if you are running your Airbnb rentals as a business. So luckily, Airbnb steps in and provides liability insurance for hosts in certain markets. $1 Million is enough to cover most types of incidents, but if you often host large groups, or have a very expensive property, liability can add up quick so you may want to consider additional coverage.
What isn’t covered? Well according to Airbnb as of the time of writing, here are the exclusions:
The Host Protection Insurance program does not apply to liability arising from (1) Intentional Acts including: (i) Assault and Battery or (ii) Sexual Abuse or Molestation – (by the host or any other insured party), (2) Loss of Earnings, (3) Personal and Advertising Injury, (4) Fungi or Bacteria, (5) Chinese Drywall, (6) Communicable Diseases (7) Acts of Terrorism, (8) Product Liability, (9) Pollution and (10) Asbestos, Lead or Silica
Make sure to stay away from that “Chinese Drywall”!
In conclusion, I hope this helps clear up the difference of the Airbnb Host Guarantee and Airbnb Host Protection plan. Leave a comment below or send us a message if you have additional questions!