Airbnb Insurance: How It Protects Hosts
Airbnb provides two main kinds of coverage to its hosts: host damage protection and host liability protection, each of which has a $1 million limit. Host liability protection covers claims made against you by guests, while host damage protection pays for damage to your property caused by guests.
Additionally, your existing renters or homeowners insurance might also protect your property from damage related to Airbnb or other home-sharing services. However, coverage often applies only as long as you’re renting your property just occasionally — a term that may be defined differently by different insurers.
What does Airbnb host protection cover?
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Airbnb's host damage protection covers up to $3 million in damage to your belongings caused by guests staying on your property. Unlike their host liability protection, this program isn't a form of insurance. However, it has some similarities to the personal property coverage on a regular homeowners insurance policy.
Host damage protection pays for damage to your property or belongings caused by a guest. It also pays for any extra cleaning costs and lost income if you need to cancel a booking.
Examples of damage covered by host protection
- Vandalism
- Accidents
- Broken plates
- Pet damage
- Smoke/fire
After an incident, you have 30 days to complete the entire claim process. First, you must contact the guest to ask them to pay for the damage. You have 14 days after your guest checks out to contact them and notify Airbnb if they refuse to compensate you. You must then provide Airbnb with documentation of the incident, including proof of ownership, as well as pictures and descriptions of the damage. Failure to adhere to any part of this timeline could disqualify you from receiving any reimbursement.
If your claim is successful, you may receive the actual cash value of your property — what the item's worth, minus physical depreciation. Unfortunately, there's no way to upgrade to guaranteed replacement coverage, which pays the full replacement cost of an item.
You aren't covered by Airbnb's damage protection if your property suffers damage from weather-related events or your guests injure your pet. Any costs from mold or mildew are also excluded from this protection. Airbnb also doesn't provide coverage for special irreplaceable items you might own, such as jewelry, collectibles or artwork.
What does Airbnb's liability insurance cover?
Airbnb's host protection liability insurance protects you if a guest or another individual makes a claim against you.
For example, say a guest breaks someone's property or accidentally injures another person in the lobby or hallway of the building your rental is in. If the victim makes a claim against you, your Airbnb liability insurance would cover you.
Airbnb's liability insurance extends to all areas associated with your property, such as your apartment building's lobby. It also applies to automobiles and mobile homes if they are listed on Airbnb's website as accommodations.
Host protection doesn't apply in every situation, though. For example, it doesn't cover acts of assault and battery, mold or fungi, acts committed by intoxicated minors or adults, or sexual assault.
Airbnb's liability insurance doesn't cover damage to your property, either. This is where Airbnb's host damage protection comes in.
Does renters insurance cover Airbnb?
Either your renters or homeowners insurance policy might cover some property damage caused by guests, including those participating in home-sharing programs like Airbnb. Typically, a renters or homeowners insurance policy protects your property as long as you only rent it out occasionally.
For example, your renters insurance might say that you can't rent out your home for more than a certain number of days per year — usually 90. In other cases, a renters policy might deny coverage if you make more than a couple thousand dollars annually from home sharing. Each insurance company has its own definition of "occasional home sharing," so it's best to talk to yours if you plan to list on Airbnb.
As with Airbnb's own insurance agreements, you could run into problems with your renters insurance if your lease doesn't allow you to participate in home sharing. If you fail to inform your insurance company that you're hosting Airbnb guests or do so against the insurance company's rules, any claim you make will probably be denied.
How Airbnb insurance compares to Vrbo insurance
Airbnb's host protections are substantially more generous than Vrbo's, especially after Airbnb's upgrade to AirCover for Hosts.
Airbnb vs. Vrbo: Automatically included host protection
Airbnb | Vrbo | |
|---|---|---|
| Host protection | $1 million | N/A |
| Liability coverage | $1 million | $1 million |
The big difference between the companies is that Airbnb includes $3 million of host protection, but Vrbo doesn't include any by default. This coverage pays to repair or fix damage to your rental caused by a guest, including accidents, vandalism and pet damage.
As part of Airbnb's new AirCover for Hosts program, you'll also be compensated for lost income if your rental is unavailable due to guest damage.
In contrast, Vrbo offers optional damage protection plans to its renters, but you can't purchase one as a host. Instead, Vrbo recommends buying your own insurance.
Both companies offer $1 million of host liability coverage that covers you if a paying guest or other visitor is injured on your property. It'll also cover damage done by visitors to common areas of your rental, such as the hallways of an apartment building. Both companies provide primary coverage, meaning the liability protection will kick in before your own liability insurance goes into effect — a good thing that could save you money.
Is Airbnb insurance available everywhere?
Although Airbnb insurance is available for free to any host on the platform, states within the US have their own laws regarding home sharing that could determine whether you qualify for protection under AirCover for Hosts.
To access Airbnb's insurance services, you must comply with local laws and the rules of the landlord or condominium board regarding home-sharing services. In some cities, such as New York, this might mean complying with zoning laws, applying for commercial permits or paying extra taxes. If you ignore these kinds of regulations, you may be disqualifying yourself from the benefits of Airbnb insurance.
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