Airbnb Insurance Issues

The Airbnb Host Guarantee is property damage protection up to $1 million, and it’s included with every Airbnb listing. The Host Guarantee is a nice little safety net to have, but there are a lot of gaps in this kind of coverage.

It comes with numerous exceptions that make it difficult to receive reimbursement after a claim is filed. For example, you have an extremely short window of time to file a claim. And if your guest overstays and damages property after the rental period, Host Protection won’t cover you. The Airbnb policy even requires you to contact your primary insurance plan before filing a claim with them.

Relying on the built-in insurance that Airbnb offers could land you in hot water if a guest damages your property. The biggest issue with the Host Guarantee is the fact it’s not truly insurance, which means it’s not a binding contract between two parties. Ironically, there is no guarantee.

The outside of a short-term rental home with a bright red door.

Eliminate Airbnb Insurance Problems With The Proper Coverage Plan

Most commercial liability insurers allow you to customize their plan to fit your needs. But if you’re not familiar with what coverage you need, insurance can get a bit confusing. Plus, if you purchase commercial liability insurance, you’ll have to manage both a homeowner’s plan and a commercial insurance plan. Not only is this costly, but it can also be time-consuming and complicated. With Proper Insurance, there’s no guesswork – just one simple plan that is affordable and designed to take care of all your coverage needs, from personal to commercial property. That way, if something happens to your property, you can rest assured that you’re in good hands.

Airbnb Coverage Problems That Could Bankrupt You

Bankrupt from a simple Airbnb rental? It sounds crazy, but it could happen. Indeed, there’s no shortage of Airbnb insurance problems for property owners who file a property damage claim with the rental company. It’s important to understand that when you choose to rent your home out to a stranger, you’re trusting this person with a valuable asset: your property. If your home is damaged, or worse, destroyed, can you trust Airbnb to reimburse all your costs? And if your guest is injured or killed during their stay, are you prepared for what could be a long and costly legal battle with the family? While no one enjoys thinking about these events, it’s important that you, the property owner, is always prepared for the worst-case scenario.

While $1 million (the amount Airbnb’s Host Protection will cover) may seem like a lot of money, it could quickly evaporate in medical bills and court fees. Without commercial insurance, can you cover the rest out of your own pocket?


Because we only service the vacation rental industry, our short-term rental insurance knowledge base is unrivaled. We are proud of our customer feedback and our outstanding agents who make it all possible.

Payton Voss

“I called several companies to get a policy. All required multiple days to offer a solid quote. Several came back and couldn’t meet the limits requirement. Proper Insurance came through like rock stars! Same day quote. Same day binding (so we could meet our closing date) AND BY FAR best pricing and coverage offered.”

Nicholas Massey, Director of Sales

“Proper Insurance is who I trust after 10 years of renting. They have seen me (owner/manager) and my clients, whom I rent for, through good and bad. They are THE insurance for vacation rentals covering not just the home but $1M in liability (a huge issue for renting) also lost income due to damage to the home if issues make it unrentable. AND MOST IMPORTANTLY – they deliver on their promise, I have tested it.”

Ian Smith

“Coverage for our mulit-layer Airbnb was proving VERY difficult to find. The major carriers were inconsistent about their understanding of the coverage, and few were misleading until we got on the phone with their underwriting departments. Ian Smith understood our situation immediately and comforted us about Proper being built specifically for these types of short-term rental situations.”

Bob Bradley

“Bob Bradley was very helpful and extremely responsive via email, phone and text in helping me identify the right coverage for my short-term rental in NC. He carefully reviewed all the options available with me and helped me choose the best policy that would suit my needs. I highly recommend anyone looking for STR insurance to go with Proper.”

Ashley Haley

“Ashley from Proper Insurance is the best insurance agent I have ever worked with. She is extremely responsive, reliable and efficient. She also goes the extra mile to structure my coverage for the best price possible. As a long time realtor and an owner of multiple short term rental properties, I highly recommend Ashley and Proper Insurance for all your rental property needs. The best of the best.”

Airbnb Insurance Problems Could Be Avoided With Proper Coverage

Most Airbnb insurance coverage problems are a result of property owners relying on free protection plans or incompatible insurance. For example, many property owners think that their homeowner’s insurance will cover their rental property, but this is not true. In fact, not only do homeowner insurers not cover rental situations, but they will reject any claims that are filed as a result of the rental. Furthermore, even if you submit your own claim that is not related to your guests, they could deny it on the basis that you’re violating the homeowner agreement by allowing guests to rent your property. In general, most homeowner plans will terminate your coverage at this point. To protect yourself, make sure you have adequate coverage from a company that insures short-term rental properties.

Business Income Coverage

When you hand your home’s keys to a guest and take money in exchange, you’re effectively running a business out of your home. When an event occurs that causes you to lose bookings (tree falls on your home, plumbing issues, etc.), your insurance company should treat you as a business! Business income protection like Proper Insurance offers includes actual loss sustained business income coverage protection with no time limit.

About the Author

Proper Insurance

Proper Insurance is the nation's leading short-term vacation rental insurance provider, with the most comprehensive policy on the market. We protect homes in all 50 states with unmatched coverage for your property, revenue, and business liability, customized to include guest-caused theft/damage, liquor liability, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.


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