Airbnb’s Host Guarantee plan is free and automatically active in all your rentals. But don’t be fooled into thinking you’re receiving adequate coverage. Unfortunately, many rental hosts are unknowingly violating their state’s law when their only insurance coverage is the host guarantee. In Airbnb’s own words, their Host Guarantee is not an insurance plan and does not provide much-needed liability coverage, leaving you exposed and at risk.
In fact, many property owners around the world have reported significant problems with receiving reimbursement under the Host Guarantee. For example, if Airbnb rejects your claim for damaged furniture, you’ll have no other choice but to pay for it out of your own pocket. Is that a risk you’re willing to take?
Some Things Not Covered Under the Airbnb Host Guarantee
Perhaps you were renting out your house, and didn’t know that your cleaning crew was not removing the soap scum build up in the shower. If someone stayed at your home and slipped on that soap scum build up, it would not be covered under Airbnb’s plan. Their medical bills would fall into your lap, whether you legitimately knew that the soap scum build up was there or not. Likewise, if a guest were to slip and fall anywhere on your property, you could be held liable for their injury. The Airbnb host coverage is a welcome supplemental plan to your current commercial liability insurance, but it does not cover some of the most important things in the rental business, such as liability.
Airbnb Insurance Coverage: The Host Guarantee is Not Insurance
When you rent through Airbnb, you’re automatically covered under their Host Guarantee which allegedly covers you for any property damage a guest may cause. However, Airbnb states on their website “the Airbnb Host Guarantee is not insurance and should not be considered as a replacement or stand-in for homeowners or renters insurance.” Other concerns are reviews online. There are many well published blogs explaining in detail why and how the Host Guarantee was denied. Every Airbnb host already carriers either homeowners or renter’s insurance, so just make sure it covers short-term Airbnb guests, and don’t reply on a guarantee.