Hosting a property on Airbnb can be an extremely rewarding (and profitable) business. That being said, it is challenging and requires hard work. Just like any other industry, the vacation rental business also has its own uncertainties and risks.
So, to ensure that listing your property on Airbnb will generate a steady stream of income, it is absolutely key that you protect your property by investing in Airbnb insurance and following other useful tips to avoid risks.
What is the difference between Airbnb’s Host Protection Insurance and Airbnb’s Host Guarantee?
It is so important that hosts clearly understand that these two programs that are offered by Airbnb are in fact not the same thing.
Airbnb’s Host Protection Insurance program offers liability cover for up to $1 000 000 per incident when a third party claims for bodily injury or damages to property that happened during an Airbnb stay. However, this Airbnb Insurance cover is subject to certain limitations and conditions.
Airbnb’s Host Guarantee also offers protection for up to $1 000 000 to a host in the rare event that a guest, unfortunately, damages the possessions or a home of the host. It is not insurance and hosts will still need to ensure that they do have their own Airbnb insurance that offers sufficient protection against damages. Similar to the Host Protection program, there are certain limitations and conditions that apply.
So, in short, the Airbnb Host Protection Insurance program is for when a third party makes a claim (in other words, not the host), while the Host Guarantee program is for a host if a guest perhaps damages the property of the host (but this program to has a long list of limitations).
So what does Airbnb’s insurance cover and more importantly do not cover?
As explained earlier, the Airbnb Host Protection Insurance will not cover the damages that were caused to the property of the host. It is there to offer protection only to your guests and other third parties like a neighbor.
Also, the Host Protection Insurance program is currently only available in the following countries: Australia, Austria, Belgium, Canada, China, Croatia, Czech Republic, Finland, France, Germany, Hungary, India, Ireland, Israel, Italy, Japan, The Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, South Africa, Sweden, United Kingdom and United States.
In addition, certain claims are not covered by this program. Examples of things that are not covered by the Host Protection Insurance program are intentional acts, such as assault, acts of terrorism or product liability.
The Airbnb Host Guarantee does not offer coverage against securities, cash, artwork, jewelry, collectibles, personal liability or your pets. Therefore, hosts are strongly advised rather remove any of their valuable items whenever they are renting their property. Also, if you hoped that the Airbnb Host Guarantee will cover any damage caused by wear and tear, that is unfortunately not the case. So, rather set some of the money that your Airbnb business has made aside for that rainy day when your roof starts to leak.
In the event that the type of damage is covered by the Airbnb Host Guarantee, there are also certain procedures you have to follow when making a claim.
Which kind of insurance do you require?
It is important that every single host understands that all homeowner’s insurance policies exclude business activities. This means that your insurance provider has every right to reject claims that relate to your properties that you have listed on Airbnb or similar platforms.
Also, if you use your vacation rental property as your own place of residence too, make sure that you, in fact, have personal liability cover as well so that you can rest assured that you are insured in the event of personal negligence.
Airbnb insurance is very intricate. So, it is best that you discuss your unique needs with a reliable, professional insurance advisor who is actually familiar with Airbnb insurance.
Unfortunately, the reality is that there are hosts who fail to pay attention to something as important as Airbnb insurance. It is best to double-check that you do in fact have adequate Airbnb insurance cover in place. It might be one of those things that get bumped to the bottom of your to-do list too often, but rather do it now to avoid a lot of pain and problems in the future. Ensure that you are insured today!