Get to Know Airbnb Host Protection Insurance
Becoming an Airbnb host can be a process that’s fraught with anxieties. Even if you don’t rent out your primary dwelling (some people buy properties solely to act as Airbnb rentals), it can be nerve-wracking to allow complete strangers to post up at your place for a few days. But how exactly does this type of insurance coverage work?
Airbnb Host Protection: Liability Coverage for Guests
Airbnb’s host protection insurance is a legitimate form of liability insurance coverage underwritten by Lloyd’s of London and Zurich Insurance, two well-regarded international insurance carriers. Host protection insurance does exactly what its name implies: protects hosts like you from being sued by guests. This service provides up to $1 million in protection against bodily injury and property damage claims.
For example, if an Airbnb guest stumbles on your staircase and is injured in your Airbnb, host protection insurance protects you if they decide to sue. If an international guest damages her European hair straightener in your American outlet, host protection insurance will likely cover the cost of the straightener.
How is Airbnb insurance different from the Airbnb Host Guarantee?
Host protection insurance typically protects hosts from litigation. Another service offered by Airbnb, the host guarantee, is more comparable to an insurance policy for your stuff—your “personal property” in insurance parlance. Like host protection insurance, the host guarantee offers up to $1 million in coverage. But in this case, it’s dedicated to covering your belongings rather than reducing your liability. Host guarantee coverage doesn’t cost anything and is automatically applied to every listing. In short, the host guarantee covers property damage caused by guests—whether it’s a stain on your rug or a stolen statuette.
Of course, there are some caveats to this type of insurance.
Host guarantee coverage only applies to property within the listing itself. If your listing is for one room in a larger home, the host guarantee insurance coverage will protect anything within that room. Items and property in common areas (like a lobby, shared kitchen, or entryway) are not protected—however, common areas are covered by Airbnb host protection insurance, which we covered earlier.
The Airbnb host guarantee also won’t cover the typical wear and tear incurred by hosting multiple short-term guests. For example, a mattress that sags after dozens of people sleep on it isn’t eligible for coverage—that’s expected wear and tear. The same principle applies to permanent fixtures that show evidence of daily life, such as loose doorknobs, tarnished faucets, and dulled wood floors. Wear and tear is an inevitable part of Airbnb hosting and is different from accidental or intentional acts that cause damage.
Finally, high-value items often have reduced coverage under this type of policy. If you’re fond of priceless antiques or one-of-a-kind works of art, it’s probably wise to keep them out of your Airbnb.