Giving the fact there is no easily discoverable information that a liability insurance claim has been paid by Airbnb for the Host Protection, any host should be concerned. Most business owners know nothing is free. If Airbnb lists multiple exclusions in their insurance summary, then what other exclusions may actually be the policy?
Airbnb Rentals Need a Specialty Insurance Policy Designed for Hosts
All Airbnb hosts need an insurance policy that not only covers their liability, but also covers their building, contents/personal property, and loss of income. The insurance also needs to cover them when it’s rented, and when it’s not rented. For this, you need a comprehensive insurance policy that can replace the current coverage on the hosts home. There needs to be coverage for fire, theft, vandalism, water damage, income, liability, and so much more. Host Protection Insurance is a great marketing tool for Airbnb, but clearly is far from comprehensive.
Host Protection Insurance: Does It Cover All Your Needs?
If you’re relying on the Host Protection Insurance for your Airbnb rental home, you might want to reconsider. Many homeowners around the world have been left with a huge bill after Airbnb denied their claim. The problem is that Airbnb’s liability coverage is a free insurance plan. Free insurance plans often come with a large amount of exclusions and a complicated claim process that makes it difficult for you to receive coverage. These exclusions are what make it possible for Airbnb to provide this coverage for free. Unfortunately, this leaves you, the homeowner, completely exposed to liability in situations such as:
- A guest breaks their leg and decides to file a claim against you.
- An assault occurs on the property during the rental which leads to a personal injury lawsuit.
- A guest hurts himself in a fall and decides to sue you.
As you can see, avoiding liability coverage for short-term rentals could cost you big. It’s simply not worth the risk.
Host Protection Insurance: No Coverage for Assault and Battery
Perhaps two of the most costly and serious liability concerns for any business owner are completely left out of the Host Protection Insurance offered by Airbnb. But what does that mean for you, the host? In general, when a guest is staying at your home, you’re considered legally responsive for their health, safety, and welfare. While that’s not to say you’re responsible for their poor decisions, you should still exercise caution.
For example, if a guest was playing around on your stairs and then fell and broke their legs, they could file a lawsuit against you. While in this situation it’s clearly their fault, you’ll still need to defend yourself from these allegations.
In another example, if an intruder was able to break into your home due to faulty locks and your guest was assaulted, then that guest may have a good reason to sue you for damages.
While these are situations that no one wants to think about, it’s something that hosts need to ensure they’re prepared for. The best way to make sure your protected is to obtain property and liability coverage from Proper Insurance, a comprehensive all-in-one insurer for short-term rentals.