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.
Relying on Airbnb’s Property Damage Guarantee Could Leave You Broke & Homeless
While Airbnb often touts their $1 million-dollar guarantee, the truth is, it’s very difficult to receive any kind of reimbursement when filing a claim. In fact, you should be questioning how they’re able to offer this level of coverage for free. The answer lies in the Host Guarantee insurance contract. Not only is it not real insurance, the plan requires you to seek reimbursement through the guest and your own homeowner’s insurance before you file a claim with them. And you only have a few days to file an Airbnb claim.
If both the guest and your homeowner’s insurance take too long to respond to your claim, then Airbnb will automatically reject your reimbursement as the deadline already passed. Given that it’s unlikely the guest who damaged your property would be willing to pay for it and that homeowner’s insurance doesn’t cover property rentals, it almost seems as if this requirement is a trap to get you to exceed the deadline requirement.
Lastly, the guarantee is a shared program. If the coverage limit is reached before you file a claim, then you’re out of luck. Why take the risk?