Insurance coverage is a host’s most critical companion when operating your rental business. It can have a dynamic effect on a homeowner’s bottom line and could be the sole plan of continuation in the event of a financial loss.
As of 2022, Airbnb has rolled out, the upgraded protection for hosts coined, AirCover. A protection program consisting of both the host liability and host damage protection (property damage) for the bookings completely free of additional charge.
An expansion not just to coverage, but also an upgrade to customer service according to Bloomberg.
Here are a few of the key takeaways from Airbnb’s Aircover.
- $1M liability insurance: You’re protected—even in the rare event that a guest is hurt.
- $1M damage protection: Covering damage by guests to your space and belongings, including valuables.
- Pet damage protection: Unexpected damage done by four-legged guests is covered.
- Deep cleaning protection: Compensation for unexpected cleaning costs.
- Income loss protection: Reimbursing lost income if you cancel confirmed bookings due to damage.
- 14-day filing window: 14 days to report damage — even if you’re booked back-to-back.
- Quicker reimbursements: Faster reimbursements for guest damages (9 days on average).
- Faster track for Superhosts: Superhosts get access to a dedicated support line with priority routing.
However, it goes on to mention, “The Host Damage Protection is not an insurance policy. To the extent you desire protection beyond the Host Damage Protection, Airbnb strongly encourages you to purchase insurance that will cover you and your property for losses caused by Guests or Guests’ invitees in the event your loss is not within the terms of the Host Damage Protection.”
Here’s a short list of some of the main exclusionary language from Airbnb’s Aircover; Host liability or property damage protection:
- The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling, or premises that a person occupies, committed by or on behalf of its owner, landlord, or lessor
- Personal injury: Slanders or libels a person or organization or disparages a person’s or organization’s goods, products, or services
- Damages resulting from natural catastrophes
- Wear-and-tear of the property
- Mold, fungi, or bacteria
- Any damage the guest causes to the property after their booking period has expired
- Mysterious loss of inventory during stock taking
- Identity fraud or identity theft
- Losses resulting from faulty workmanship
- Losses resulting from hazardous chemicals or bacteria
- Personal items like cash and precious metal
Although Aircover boldly offers both the host and guest coverage entirely for free, it is limited and the host is still at risk for the gaps in coverage. It was designed to cover what a guest is liable for in damage or compensation only, so it leaves out much of the coverage that would apply strictly to a homeowner. Consider the ability to stay at alternative lodging in the event of a guest-driven fire loss.
Having the correct homeowners or commercial policy in place will be invaluable to continuing your business. Speak to an agent to be sure you have all bases covered if you’re hosting guests on any home-sharing platform.