Accidents happen. A guest slipping on the stairs and breaking their arm can be financially devastating for a short-term rental host if their business isn’t adequately protected. That’s where Airbnb insurance comes into play.
While Airbnb offers protection for hosts, you might be surprised to learn that’s it’s simply not enough. This guide will discuss what coverage Airbnb provides, what third-party providers should consider, and how Short Turns Airbnb Management can help.
What is Airbnb Insurance?
AirCover is a program designed to provide insurance for Airbnb hosts. It protects hosts from third-party claims and property damage caused by guests. This protection plan is automatically included for all hosts and ensures peace of mind by covering a range of potential issues. The two plans available are Host Liability Insurance and Host Damage Protection.
Airbnb Insurance: Host Liability Insurance
Host liability insurance protects hosts from claims made by guests, cohosts, and cleaners for bodily injury or property damage. The Host Liability Program covers up to $1,000,000 per stay. Examples of claims accepted include:
Physical injury
Damage or theft of a guest’s property
Damage caused by a guest to common areas (i.e., the lobby of an apartment building)
However, it’s important to note a few items that the host liability protection doesn’t cover, such as:
Any damage done intentionally by a guest
Damage to the host’s property or personal belongings
Criminal activities
Electronic data
Acts committed by intoxicated minors or adults
Airbnb Insurance: Host Damage protection
Host Damage Protection covers up to $3,000,000 in damages to the host’s property caused by guests. This element of Aircover for hosts includes coverage for:
Furniture and appliances
Income lost due to having to cancel confirmed bookings because of damage caused by a guest
Extra cleanings due to extreme guest messes
Damage to parked cars, boats, or other vehicles
Items that aren’t covered include:
Normal wear and tear
Loss of currency
Acts of nature
Guest injury
War
Mold of fungi
How Does Airbnb Insurance Compare to Vrbo Insurance?
Airbnb offers more robust coverage options than Vrbo. One of the standout differences is in damage protection. As stated above, Airbnb offers up to $3,000,000 in damage protection to the host’s rental property.
Vrbo doesn’t offer any automatic damage protection for hosts. Instead, they must file a damage deposit claim against their guests. However, this isn’t very effective, and most hosts must purchase third-party insurance.
However, Airbnb and Vrbo provide up to $1,000,000 in liability insurance. While both platforms offer a comparable level of protection against a liability claim, Airbnb excels in terms of property damage insurance.