So, you’re wondering about the pitfalls of Airbnb Host Guarantee Insurance? Well you have come to the right place, because there are many things to be aware of. I will cover the topic of insurance in detail, so you can avoid being one of those Airbnb horror stories.

Many people believe that Airbnb host guarantee insurance will cover them. I’m here to tell you this is definitely not the case.

While researching this article I uncovered some startling things. Scroll through forums online yourself and see. You will hear so many horror stories from hosts trying to get reimbursed and Airbnb not paying out.

As a host, it is such an important topic to familiarise yourself with. For starts, you never know when you may need to claim insurance, a common thing in the short stay industry.

So here is some key info that you need to know about Airbnb insurance. As a result you may avoid being one of those hosts with a horror story to tell.

Likewise I’ll also show you how to lodge an Airbnb claim with success, in 6 easy steps.

Airbnb Host Guarantee Insurance vs Host Protection

So what’s the difference between Airbnb Host Guarantee insurance and Host Protection insurance?

Ok, so Airbnb have two insurances that they offer. Host Protection Insurance and Host Guarantee Insurance.

Airbnb Host Protection Insurance is for liability claims. For example, a guest steps out your front door and trips on an uneven step. This insurance covers you should a guest decides to sue.

This coverage will include communal areas such as a gym or a hallway. In other words, areas that are in the same building as your property, up to $1 million USD.

What they won’t cover is when a guest intentionally causes damage or injury to someone. So if your guests are having a tussle, let’s hope that they take it outside!

Airbnb also won’t cover your property if there is any damage from the presence of mould or pollution. An exception to this is heating and cooling.

Airbnb Host Guarantee Insurance

Host Guarantee Insurance is more like your traditional insurance that covers damage to your property. But be wary, it doesn’t cover a lot.

What’s covered

• Booking Income Loss – If your property suffers damage to the point where it is inhabitable, Airbnb will compensate you
• Personal property that you own (excluding “fine arts”)
• Damage to your property (walls, floors, windows etc) 

What’s Not covered

• Any damage to the property before or after the booking date
• Weather events (earthquakes, floods etc)
• Any loss or damage caused by illegal acts (unless done without your knowledge)
• Any damages relating to mould, mildew, fungus, spores or other microorganisms of any type

How to Lodge a Claim with Airbnb

To lodge a claim you must have first made contact with the guest within 14 days or before next guest checks in. Then you have two options to make your claim. First you could contact Airbnb by opening a claim in the Resolution Centre. Or you could contact customer and lodge a claim over the phone.

If you are filing a claim over an illegal act, you must first file a police report and then present the report to Airbnb.

To file a claim for property damage, you much provide Airbnb with evidence. Things such as receipts, photographs, videos, documents and quotes to repair, for example. These quotes must be on a letter head and must show your name.

Finally, you will have 30 days to provide a proof of loss statement. This period starts from the date when your property experiences damage.

Your statement should include:

• Time, cause and origin of the damage with photos, documents, videos and receipts. It’s also a good idea to time stamp any photos
• The cash value of the damaged or lost property
• All information known about the guest that caused the damage
• The date that you first contacted the guest about the damage and the date at which the guest declined to pay for the damage

Once you have provided all the above, Airbnb will want to nut out the exact value of the damaged item.

They will ask when you bought it and how much it was. They’ll also want to see a receipt, what condition it is in now and how much it will cost to repair it.

This is all part of the fun of the Airbnb host guarantee insurance process! Check out the screenshot below.

I have heard many stories of Airbnb making people jump through a LOT of hoops. Please keep anything and everything as proof. Time stamp your photos, get official quotes with business names and your name on the document. Keep all receipts scanned on your pc so they are always handy.

Like all insurance companies, they will try their very hardest to get out of paying for anything. So be persistent, jump through their hoops and you will more than likely win your claim.

Airbnb Insurance Problems

So Airbnb openly declare that their insurance is not insurance at all. It’s something they make no secret of.Did you know there is 4,200,000 active listings at time of writing? That’s a huge number. So how many of those listings are under covered with what they think is a $1,000,000 policy if things go pear shaped?

Take a look at the image a little lower. I rounded the 4,200,000 listings down to 1,400,000 unique hosts as the average host now runs 3 properties.

In my research I found that around only 25% of hosts will make a claim over a 2 year period.

So that equates to about 479 calls per day to Airbnb with people either filing a claim or a complaint.

That is a LOT, no wonder the average star ranking for their customer service is 1 star. How much does Airbnb make off their hosts and guests again?

Airbnb forums are rife with stories of hosts having to scratch and claw to try and get anything out of Airbnb for their claims.

Some hosts are so disgruntled they try and start class actions or throw in the towel and close up shop.

There are even dedicated websites on this subject. Where frustrated hosts can vent and let out all their dirty laundry. Check out AirbnbHell.com for example.

It would seem that the key to getting anywhere with a claim is to get your guest to admit they caused the damage. And make sure you get them to admit as much via Airbnb chat so the customer service reps can see it.

Should I have additional Insurance?

The answer to this is a resounding yes! Not only does Airbnb not cover you if you if there is a flood or an earthquake, they will also make it super hard to get any money out of them at all. 

Airbnb also put it quite bluntly in their terms and conditions. They state their insurance isn’t at all adequate. They don’t even consider it to be an insurance policy at all!

Take a look at this excerpt straight from the T&C’s document:

“The Airbnb Host Guarantee is not an insurance policy. To the extent you desire protection beyond the Airbnb Host Guarantee, Airbnb strongly encourages you to purchase insurance that will cover you and your property for losses caused by Guests or Guests’ invitees in the event your loss is not within the terms of the Airbnb Host Guarantee.”

as per Airbnb T&Cs

You must have an insurance policy on the building and your contents at least. To compliment Airbnb’s ‘insurance’.

Not just any policy will do, though. You also must disclose that you run a short stay business in your property, which often sends alarm bells. Most mainstream insurance companies will flat out refuse to insure you.

There are some speciality insurers that have a pay per booking policy. They charge a fixed amount per night and cover you for damages and liability. Similarly to Airbnb’s policies, but you wont have to jump through so many hoops if you ever need to make a claim.

For my Airbnbs, I went to see a private insurance company who made up a custom policy especially for our needs. This way you can pick and choose what you want covered so you’re not paying for anything you don’t need.

How to Win an Airbnb Dispute 

So the thing we all dread as a host has happened. You walk into your Airbnb after a guest has stayed and it is a mess. There are dishes everywhere, rubbish vomiting out of the bin, the place smells like cigarettes and your glass coffee table has been smashed… What now…?

I must warn you though, Airbnb has a reputation of running hosts in circles. Especially when it comes to big money that you are trying to get reimbursed for. So I recommend you stick at it and be consistent.

Having an Airbnb host guarantee insurance claim approved is a tough process. It can take a lot of time, so keep this in mind.

I would love to hear from you in the comments section below if you have ever had any success with an Airbnb claims.

Conclusion

I hope haven’t scared you off too much! Understanding how Airbnb host guarantee insurance works is critical. As is knowing how all the other different types of insurances out there work. It can be a bit of minefield at the best of times.

My aim in this article is to let you know some of the horror stories that could potentially happen to you. It can happen to any host, so preparation is the key here.

So don’t rely on Airbnb insurance, it’s rubbish. As soon as you close this window, go research some speciality insurers. It will be some of the smartest money you’ll ever spend on your Airbnb house.

You should also now know how to lodge an Airbnb claim, which you will most likely have to do at some point.

It will also pay to read my article on is Airbnb covered by travel insurance? This covers all the questions of insurance from a guests perspective.

As usual, if you have any questions or anything further to add, I’d love to hear from you in the comments below.