AirBnB is a popular and foremost rental home listing/home-sharing service and offers insurance to those who list their homes on the site for short term rent.
This is a nice largess, but sure doesn't cover everything; therefore, hosts are pre-warned to be aware of what losses they are very much susceptible to.
AirBnB’s provides different insurance primarily to cover damages before another or home insurance policy takes over.
AirBnB provides insurance that provide coverage up to $1 million for third-party bodily injury or property damage claims. Thus, this article is about AirBnB insurance and all that you need to know.
3 Types of AirBnB Insurance
Regardless of how your home or room is, and you avail it for to share, AirBnB has provided a simple and secure means to host travelers.
Nonetheless, at the time of sharing your home, you are in total control of your availability, house rules, and prices and how you relate with guests.
So as to ensure that you, your home and belongings are safe, AirBnB covers every booking with $1M USD for protection of damaged property and another $1M USD provision for insurance against accidents. AirBnB has different insurance packages which are:
AirBnB's Host Protection Insurance
The AirBnB Host Protection Insurance is a public liability introduced and kicked started in 2015. It provides liability that provides coverage primarily in the event of a third-party claim of property damage or bodily injury related to an AirBnB stay.
This coverage amounts to a $1,000,000 cap per listing location, and certain limitations, conditions, and exclusions may be applicable.
In fact, the Host Protection insurance aimed at protecting the host/landlord against claims made by a guest during their stay in their home. This innovation is a great development and it is aimed to encourage and attract more hosts/homeowners who may previously have been concerned about the level of protection provided on to the site.
The Host Protection Insurance program serves as the primary insurance coverage for incidents related only to an AirBnB stay and it's available to landlords/hosts regardless of their other insurance arrangements.
Protection against the unexpected
The AirBnB Host insurance comes in handy especially when things get out of hand or doesn’t go as planned, all those that list their homes are provided with free Host Protection Insurance. There is provision for a third-party liability insurance in the unlikely event that someone files a lawsuit or claim against you for bodily injury or property damage.
AirBnB Host Protection Insurance provides primary liability coverage that is up to $1 million USD per occurrence, meaning they cover for the event of third-party claims of bodily injury or property damage.
The insurance program covers not all but certain property damage in common areas of a property outside of the listing itself (i.e. a building porch). Hosts and homeowners associations are covered in certain lawsuits when claims are filed against them due to a guest damages or experience injury.
What’s not covered?
As said earlier, not all damages or injury and other liability are covered by the Host Protection Insurance program. It cover is a liability claim which arises outside of a stay. So though you’re well protected while you have guests, cover is still required for the rest of the time.
Some of the things not covered by AirBnB covered include:
AirBnB’s Host Guarantee Insurance
On every occasion a guest makes a reservation and opts to stay at your place, the Host Guarantee automatically covers you.
The AirBnB Host Guarantee like the Host protection insurance provides protection that’s up to $1 million USD to a host for any damages so as to cover property in the rare event of guest damages that is above the security deposit or if there is no security deposit at all.
Yet, the Host Guarantee Program doesn’t cover collectibles, rare artwork, jewelry, cash and securities, pets or personal liability.
Therefore, hosts or homeowners are advised to remove or secure valuables when renting their place. Also, property loss and damage due to wear and tear is not covered by the program.
More so, the Host Guarantee Program does not necessarily serve as insurance and does not replace your homeowners or renters insurance.
Ensure you review and understand the terms of your insurance policy and what it covers and what it does not cover.
Not all insurance will cover damage or loss to property caused by a guest that is renting your space. If a guest is said to be at fault by AirBnB, filing a host guarantee request doesn’t prevent a guest from financial responsibility for the damages claimed.
Note: There conditions, limitations, and exclusions attached to payments made through AirBnB Host Guarantee. In the case of any damage occurrence, there is need to provide documentation (i.e. photos, receipts, etc.) as evidence and will be needed as part of the resolution process.
What’s not covered?
AirBnB's Experience Protection Insurance
AirBnB Experience Protection Insurance was introduced to provide experience hosts with free liability insurance estimated to be $1 million to protect against property damage or personal injury claims.
The Experience Protection Insurance program provides hosts with primary coverage against liability claims of up to $1 million USD in the incident whereby a third party suffers bodily injury or property damage during an experience.
To be eligible for this coverage, it depends on the type of experience you are hosting.
It is important to be prepared for any uncertainty, during the period of sharing unique local experiences with your guests.
Before applying for this insurance coverage, it is subject to conditions and limitations, and certain exclusions may apply.
The Experience Protection Insurance program provides coverage through a policy that is deal out by a Lloyd’s of London participating insurer for the United States, Canada, and South Africa while coverage provided for other countries is provided by Zurich Insurance plc. as well as in some jurisdictions, including Kenya and South Korea where a locally issued policy is required
What’s not covered?
The Experience Protection Insurance program is not applicable to all liability or covers all types of experiences. Some of the liability that are not covered include:
Difference between Host Guarantee, Host Protection Insurance and Experience Protection Insurance
Insurance Needed by AirBnB Host
Uncertainty cannot be quantified and give no froe warning before it happens, and when it does, some of them cannot be covered by the AirBnB insurance. Therefore, there are a few insurance you will need to cover you as an AirBnB host and how you will be protected. The insurance cover you might need depends on your own needs and type.
Public liability insurance for your AirBnB
During a third party stay in your home and they have an accident and decide to demand for claim and this can be costly as claims go. If guests are injured or their property is damaged and the guest considers you to be liable, you’re legally required providing recompense. To this end is a liability insurance designed so as to cover the compensation so you won’t be left penniless.
Loss of booking income
This cover enables you to claim back some of the rent you lose if there is an occurrence of an insured event, like a fire or a burst pipe, means you can’t host for a while. There’s an embargo on how much you can claim and for how long, but it’s worth having this insurance if you are reliant on income coming in even if you can’t have guests.
Buildings insurance for your AirBnB
Even though AirBnB Host Guarantee covers some elements related to your buildings, there are conditions and limitations and it won’t cover damage not related to your bookings, particularly when there are incidences such as storm, flood damage to your home, AirBnB Guarantee nor the Host Protection will not cover them.
Home care emergency for your AirBnB
In case you choose a more comprehensive policy, you can sometimes have this included in your policy. The home care emergency for your AirBnB is effected if an emergency situation occurs and can lead to further damage if not attended to immediately.
You are expected to place a call within 24 hour to call for someone to come and fix the problem before it gets worsen. If you have guests staying at your place during the occurrence of this an emergency incidence, this could be vital so their stay is not disrupted.
Contents insurance for your AirBnB
This should be no issue because AirBnB community has a review policy for both guests and hosts; however willing your guest tries to stay and make you happy, accidents still happen and so, AirBnB include some aspects of your contents within their guarantee. To reiterate, if damage caused is not by an AirBnB guest, then you won’t be covered.
There are different levels of insurance you can consider when covering your contents. There are basic covers you can choose from such as fire, flood, storm and theft, risks such as accidental damage.
Accidental damage Cover for your AirBnB
AirBnB provides limited cover for accidental damage; if it is possible, you can protect your no-claims bonus through them. As earlier said, AirBnB won’t cover damage that is occurred by a guest’s stay within your property, therefore is best to cover all bases and make this provision on your insurance policy.
What You Need To Do
Ensure you inform your insurance agent that you are renting out your home
It is important that you inform your insurance agent that you will be out your part of your home or the entire house under AirBnB cover, so that your home or content insurance will not be invalidated.
Don’t rely totally on the AirBnB Host Guarantee
The Host protection cover provided by AirBnB is limited and may not cover all the liability or damage caused by a guest as well as some valuable items such as art, jewelries and collectibles in your home. Therefore, you need a comprehensive insurance to cover you for intentional or accidental damage caused by an AirBnB guest.
Ensure you have a host public liability insurance
Paying guests are likely to sue you if their property is damaged or they sustain an injury. This claim tend to be huge you may not be able to afford it; therefore it is important that you have a host public liability insurance to attend to such claims.
Conclusion on AirBnB Insurance
AirBnB has global presence and is reliable to meet your needs whenever you need a home to stay in or rent outside your state or country of residence.
The insurance policy designed by AirBnB is a welcome development aimed to provide coverage for homeowners as well as step in first before any other insurance company takes over.
So if you are looking to make extra cash you can add your home as a listing for AirBnB so that guests can stay over at your place.
It is advisable that you consult your insurance agent for more details and advise; while you are protected by these insurance during a guest staying or renting your home, it is wise of you to get a cover for the rest of the time.