Jane Dotson
Airbnb offers a free insurance plan called AirCover, which provides basic protection for hosts, but it does not cover everything. For example, it does not cover wear and tear, loss of earnings, shared or communal areas, and personal injury claims not involving a guest. Additionally, it does not protect against damage or injury resulting from intentional acts, gross negligence, or illegal activities. Hosts in the UK cannot opt out of this free liability insurance, which provides \$1 million in coverage in the event that a host is found legally responsible for a guest getting hurt or their belongings being damaged or stolen during their stay. Airbnb's AirCover also includes a Host Damage Protection plan, which offers coverage for damages caused by guests. However, it is important to note that this plan does not cover all potential damages or liabilities, and independent insurance may be required for valuable items.
| Characteristics | Values |
|---|---|
| Host liability insurance | Provides hosts with up to $1 million in coverage in the rare event they are found legally responsible for a guest getting hurt or their belongings being damaged or stolen while they’re staying at the host's place. |
| Host damage protection | Provides hosts with $3 million in coverage in the rare event their place or belongings are damaged by a guest during an Airbnb stay. |
| Host liability protection | Provides up to $1 million in coverage for guests’ property damage or bodily injury. |
| Host Protection Policy | Protects the landlord/host against claims made by a guest in their home during their stay. |
| AirCover | Provides damage and liability protection, plus loss of income coverage if you need to cancel a listing due to guest-related damage. |
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What You'll Learn
Host liability insurance
The Host Liability Insurance Program (HLI) insures hosts in certain countries for their legal liability for bodily injury or property damage to guests or others resulting from an event that happens during a guest's Airbnb stay. The HLI program provides insurance through policies issued by different insurance companies in the United States, China, and Japan. In the United Kingdom, the HLI program is arranged at no additional cost for hosts, and it is underwritten by Zurich Insurance Company Ltd.
It is important to note that the HLI program does not cover hosts who offer stays through Airbnb Travel, LLC, or experiences and services. Additionally, it does not insure hosts for damage or loss to their own property or accommodation. For damage to a host's property, Airbnb offers a separate Host Damage Protection program.
There are several exclusions to the Host Liability Insurance Program. These include expected or intended injury, exterior insulation and insulation systems, fungi or bacteria, punitive or exemplary damages, recording of material or information, assault and battery, and more.
While AirCover for Hosts provides basic protection, it does not cover everything. Exclusions include wear and tear, loss of earnings, shared or communal areas, and personal injury claims not involving a guest. It also does not cover damage or injury resulting from intentional acts, gross negligence, or illegal activities.
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Airbnb's AirCover
Airbnb offers protection to both its guests and hosts through its AirCover program. AirCover for guests provides support for serious issues with bookings, such as a host cancelling a reservation before check-in, or during their stay, such as a missing advertised amenity or a difference in the type of home. If the host is unable to resolve the issue, Airbnb will help find a similar place to stay at a comparable price. If a similar place is not available, Airbnb will provide a full or partial refund. It is important to note that AirCover for guests does not cover minor inconveniences or travel-related issues.
AirCover for hosts, on the other hand, offers top-to-bottom protection for hosts. This includes guest identity verification, reservation screening, $3 million in host damage protection, $1 million in host liability insurance, and a 24-hour safety line. The host damage protection covers reimbursement for certain damages caused by guests to the host's property or belongings if the guest does not pay for the repairs. The host liability insurance protects hosts in the event they are found legally responsible for a guest being injured or their property being damaged or stolen during their stay. It is worth noting that AirCover for hosts is not a substitute for personal insurance, and certain exclusions apply, such as not covering hosts who offer stays through Airbnb Travel, LLC or in Japan.
Airbnb also provides $1 million in liability and legal liability coverage for hosts, which includes protection against risks like theft, vandalism, and lost rental income. However, there are exclusions to this coverage, such as electronic data loss and damage from assault. Additionally, Airbnb offers host liability insurance and Experiences & Services liability insurance, which are underwritten by third-party insurers and regulated by the Financial Conduct Authority.
Overall, Airbnb's AirCover program provides a layer of protection for both guests and hosts, offering support and peace of mind during their Airbnb experience. While it offers basic protection, it is important for hosts to consider additional insurance to ensure comprehensive coverage for their specific needs and situations.
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Homeowners insurance
If you are considering renting out your property on Airbnb, it is important to review your homeowners insurance policy. Standard homeowners insurance may not cover short-term rentals, and you may need to purchase additional coverage. Some insurers offer short-term rental coverage endorsements for an additional fee, while others may require a separate, standalone policy.
Home-sharing insurance refers to the portion of insurance coverage necessary to protect your home as you operate a short-term rental. Regular home-sharing is considered a business activity, and standard homeowners policies do not cover this. Therefore, you must add an endorsement to your policy or purchase a separate commercial insurance policy. A short-term rental endorsement may be available through your current insurance company, and these typically cover theft and property damage. Certain endorsements may also cover liability, vandalism, and damage to guests' property.
If you are renting out your property for an extended period, you will need landlord insurance. This covers the primary dwelling, other structures on the property, personal property inside the dwelling, lost rental income, and any liability claims. Companies like Proper Insurance sell insurance products specifically tailored to Airbnb and the home-sharing industry.
It is important to note that Airbnb offers its own type of insurance for hosts called AirCover. This provides up to $1 million in liability insurance and up to $3 million in damage protection on your short-term rental. However, it does not cover everything, and there are gaps in coverage. For example, AirCover does not protect against wear and tear, loss of earnings, shared or communal areas, and personal injury claims not involving a guest. It also does not cover damage or injury resulting from intentional acts, gross negligence, or illegal activities. Therefore, it is crucial to review your own homeowners insurance policy and purchase any necessary additional coverage before listing your property on Airbnb.
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Short-term rental insurance
Airbnb offers free short-term rental insurance for hosts, known as AirCover. This includes $1 million in liability coverage and $3 million in damage protection on your short-term rental. This insurance covers pet damage, deep cleaning, income loss, theft, and property damage.
However, it is important to note that AirCover does not cover everything. For example, it does not protect against damage or injury resulting from intentional acts, gross negligence, or illegal activities. Additionally, it does not cover wear and tear, loss of earnings, or personal injury claims not involving a guest.
Hosts should also be aware of the exclusions in the AirCover policy. For example, it does not cover electronic data loss and damage from assault.
While AirCover provides basic protection, some hosts may require additional insurance depending on their specific circumstances. For example, if you are renting out your property for an extended period, you may need landlord insurance. If you use your short-term rental property as a regular source of income, you may need business insurance.
Furthermore, standard homeowners insurance may not fully cover your needs as an Airbnb host. Short-term rental insurance, often referred to as Airbnb insurance, is designed specifically for properties listed on platforms like Airbnb. It offers coverage for risks such as theft, vandalism, lost rental income, and legal liabilities. This type of insurance acts as a supplement to your homeowners policy, filling in any coverage gaps.
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Public liability insurance
Airbnb's AirCover for Hosts includes public liability insurance, which safeguards hosts from financial burden in the rare event of a guest suffering an injury or having their belongings damaged or stolen during their stay. This insurance extends to individuals who assist the host, such as co-hosts and cleaners. It is important to note that this insurance is automatically provided to hosts at no additional cost, and it is regulated by the Financial Conduct Authority.
While the AirCover policy provides substantial coverage, it is essential to be aware of its limitations and exclusions. For instance, it does not cover hosts who offer stays through Airbnb Travel, LLC, or those who host experiences or services. Additionally, there are exclusions for electronic data loss, damage from assault, and certain contractual liabilities. These exclusions highlight the importance of carefully reviewing the insurance policy's terms and conditions.
Hosts should also consider their existing insurance policies and whether they need to notify their insurer about their Airbnb activities. In some cases, homeowners insurance may not be sufficient for Airbnb rentals, and additional endorsements or short-term rental insurance may be necessary. This is because standard homeowners insurance often includes a "business activity exclusion," meaning any claims related to business activities, including Airbnb hosting, could be denied.
To ensure comprehensive protection, some hosts choose to supplement Airbnb's AirCover with additional insurance policies. This can include landlord insurance, business insurance, or specialised Airbnb liability insurance offered by select insurance carriers. Ultimately, the decision of which insurance policies to choose depends on individual circumstances, the frequency of rentals, and the level of coverage desired.
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Frequently asked questions
The Host Guarantee is not insurance and should not be considered a replacement for home or renters insurance. Airbnb recommends supplemental insurance as a must-have.
Host liability insurance provides hosts with up to $1 million in coverage if a guest gets hurt or their belongings are damaged or stolen while they’re staying at the host's place. It also covers people who help the host, like co-hosts and cleaners.
Host damage protection provides hosts with up to $3 million in coverage in the rare event that their place or belongings are damaged by a guest during an Airbnb stay.
Host liability insurance does not cover intentional damage or injury, electronic data loss, damage from assault, or situations covered under Host Damage Protection.
It depends on how you're using your property. If you're renting out your property for a limited time, you may need an endorsement on your homeowners insurance policy. If you're renting out your property for an extended period, you'll need landlord insurance. If you use your short-term rental property as a regular income stream, you'll need business insurance.
