As much as you try to avoid any accidents related to your Airbnb property or your guests, it can happen—so you need to be prepared.
Luckily, Airbnb offers AirCover for Hosts as their in-house insurance plan once you sign up to be an Airbnb host. However, you’ll likely find that the coverage falls short.
In this article, we’ll show you how Airbnb protects you and your property in case something untoward happens during a guest’s stay on your property. We’ll also be sharing some AirCover for Hosts alternatives.
What is Airbnb AirCover for Hosts?
Once you sign your property up as a rental under Airbnb, it is automatically covered by AirCover for Hosts.
According to Airbnb, AirCover for Hosts offers “top-to-bottom protection.”
The policy comes free of charge on the hosts’ end and goes into effect as soon as a guest stays in the Airbnb and the property operates as a short-term rental.
How AirCover Protects You and Your Airbnb
AirCover for Hosts covers up to:
- $3 million in Host damage protection
- $1 million in Experiences liability insurance
- $1 million in Host liability insurance
This provides hosts coverage for any unexpected events during the duration of the guest’s stay, including:
- your property or belongings are damaged by guests
- if guests get hurt
- if their belongings are stolen or damaged
Host Damage Protection
AirCover for Hosts can cover you in the event guests cause damage to your property or belongings.
This also covers income loss incurred by having to cancel a confirmed booking due to damage caused by a previous guest and any deep cleaning costs caused by the misbehavior of guests during their stay.
AirCover has also expanded its coverage to include damage caused by guests’ pets.
Experiences Liability Insurance
Say you’ve been found legally liable for a guest’s injury during their Airbnb Experience reservation or when their personal belongings get damaged or stolen.
You’ll be covered by your AirCover policy under Experiences Liability Insurance for up to $1 million.
Host Liability Insurance
Imagine a guest slips in the bathroom because of some leftover soap scum from a previous booking, or they trip and fall down the stairs during their stay in your Airbnb.
Host Liability Insurance can cover you for up to $1 million of liability claims.
Airbnb hosts have two weeks after a guest’s check-out to file a claim—this is even if the next guest has already checked in.
Airbnb also boasts quick reimbursements (within two weeks after filing a claim), and Superhosts get a priority support line and routing.
AirCover for Hosts also covers co-hosts, co-rental property managers, and cleaners.
AirCover for Hosts Limitations
While AirCover for Hosts has been expanding the coverage of their insurance policies (like adding coverage for pet damage and deep cleaning), it still does fall short when it comes to the needs of many short-term rentals.
Here are just a handful of occurrences in which AirCover does not protect you and your property:
- Damages caused by natural calamities such as earthquakes, floods, typhoons, etc.
- Ordinary property wear-and-tear
- Damage from mold, fungi, and bed bug infestations; chemical damage, bacterial damage and the like
- Coverage of out-of-property belongings (provided by the host) such as bicycles, jet skis, boats, yachts, and the like
- Coverage of extra amenities on the property like hot tubs, pools, and sauna
- Income losses due to market trends and seasonal changes
- Losses incurred due to guests’ excessive use of utilities (water, electricity, gas, fuel)
For a more extensive list of what AirCover for Hosts does not cover, you can head here.
All things considered, you’ll need an extra layer (or even layers) of insurance coverage so you can have total peace of mind.
Airbnb even recommends that you get an additional insurance policy so you can have the coverage you need on top of what AirCover for Hosts already provides.
Here are a few providers that are among the best insurance for Airbnb Hosts out there:
Proper Insurance was established to cater to the needs of Airbnbs, HomeAway, Vrbos, and short-term rental spaces.
Airbnb hosts can get a three-in-one comprehensive insurance plan that has elements of homeowners, commercial, and landlord insurance plans, effectively replacing all these insurance types.
You can tailor your insurance policy based on your exact needs, making them our top pick for the best insurance for Airbnbs.
A well-known and established insurance company, Allstate lets their homeowner policyholders extend their coverage to a short-term rental through the HostAdvantage by AllState program.
Here’s our full review of AllState HostAdvantage. Find out if they are the right fit for you.
Foremost Insurance offers an expanded landlord policy for your Airbnb vacation, meaning you get everything on a standard Foremost Insurance landlord policy and more, depending on the needs of your short-term rental property.
One of the biggest pros of working with Foremost Insurance is that you can customize additional coverages with them for an additional premium cost.
Check out our in-depth review of Foremost.
Other AirCover Alternatives
There are a handful of other vacation rental insurance companies out there.
Companies like Safely, CBIZ Vacation Rental Insurance, Nationwide, Farmers, American Modern, American Family, and Progressive all offer varying levels of insurance policy plans for your short-term vacation rental.
Whichever insurance company you choose, make sure to let your insurance agent know that you’re using your property as a short-term rental, and make sure you thoroughly read the fine print so you know exactly how your policy protects you and your property.
It’s great that Airbnb thinks about the people who sign up to their platform and provides them and their property insurance right off the bat.
While AirCover for Hosts gives a layer of protection for you and your property once you sign up with them, you should look into other insurance companies and see what additional coverage fits your Airbnb needs, most especially Proper Insurance.
Check out our roundup of the best insurance companies for your Airbnb. You’re better off covering all your bases so you can be sure that you can continue to operate your Airbnb vacation rental property in the long term.
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