With the unique business model, savvy marketing and convenient location and prices, Airbnb has taken over the world with a row. They truly have changed the travel vocabulary and have even become a source of permanent income for investors all around the world.
But, given the complexity and diversity of this business, it is crucial to analyze how the protection of the property and guests is maintained.
Well, not to go further, we have done the homework for you via this blog article. Yes, this piece of information will explore how things work with Airbnb Insurance for a seamless hosting experience.
Airbnb Rental Insurance
First things first, before converting your property into an Airbnb unit, you need to read your original lease if the Airbnb renters insurance exists because some leases strictly forbid any business activity in the rental property. All in all, it is crucial to read the terms before listing your property for Airbnb stay or if you are listing a property which you yourself rented from another landlord.
Understanding the Basics of Airbnb Insurance
Airbnb rolled out their new cover to replace the previous coverage program called the Host Guarantee. The new coverage added an additional host liability program. This AirCover is free for Airbnb hosts.
The AirCover for Hosts include:
Guest identity verification
In this the verification system checks the details like the name, address, government ID and more. This helps in confirming the identity of guests who book Airbnb.
Reservation Screening
In case the proprietary technology shows any signs of property damage or disruptive parties.
$1m USD Experience liability insurance
In case the guest fails to pay the damage caused to home and belongings, the host protection is there to help you reimburse costs of up to $3m USD.
This includes specialised protections like:
Art and Valuables
Pet Damage
Auto and Boat
Income Loss
Deep Cleaning
$1m USD Host liability insurance
This provides protection in the rare event if the guests get hurt or their belongings damaged or get stolen.
24-hour safety line
This is quite interesting because if you feel unsafe, 24-hour safety line provides one tap access from the app to specially trained agents, no matter day or night.
Enlightening Tip: The AirCover for Hosts’s damage protection and liability insurance is available in almost every country except for Japan. Japan has its own protection programme.
What are the Coverages Under Host Liability Insurance Cover?
It covers:
- Bodily injury
- Damages to the property
- Theft of property belongings to a guest
- Damages caused by guest or other properties, building areas and common areas
It does not covers:
- Damage or any injury resulting out of intentions or if done intentionally
- Damages caused to your place or belongings which are caused by guests
- Any other exclusions apply
To file a claim it is crucial to fill out a liability insurance intake form. This information is then sent to a third-party insurer who will assign the claims to representatives. They will try resolving your claim as per the insurance policy terms and conditions.
Quick Tip: Know that you don’t need to separately opt for or include the AirCover. The benefits are included and free always. Once you list your property by agreeing to the said terms, your stay is booked on Airbnb.
Difference Between Damage Protection and Liability Insurance
The AirCover for Hosts include both the damage as well as the liability insurance.
But how are they different?
Well, in case of Host damage protection, it will reimburse you if your place or belongings ever get damaged by a guest during the stay in Airbnb. On the other hand, Host damage protection isn’t an insurance policy. This is provided by third party insurance companies and applies in the rare event if the guest gets hurt during the Airbnb stay or experience.
AirCover and Personal Insurance
Your Aircover for hosts protects you while you are hosting an Airbnb stay or experience but it does not substitute in any way your personal insurance. By law, you might have to maintain different insurance for your rental property which would necessarily be not satisfied by AirCover for Hosts. But of course every situation is different, you must definitely talk to your insurer in case your policy overlaps with the AirCover for Hosts.
Comparing Airbnb Security Deposits and Insurance
If we talk of the Airbnb security deposits and short-term rental insurance, the latter is here to provide a broader safety net. In case of extensive damage security deposits fail because they can cover minor damages or wear and tear. In case of insurance, you can cover significant damages like guest injuries, theft and other such events that security deposits don’t cover.
Final Thoughts
It’s crucial to protect your investment in the long run if you’re converting it into an Airbnb staycation. Speak to your insurance provider and get quotes that suit you best.
