What Is Airbnb Host Protection Insurance?

airbnb host insurance

If you are an Airbnb property owner you need to be protected, and here are a few things you need to know before renting out your home to strangers.

What Is Host Protection Insurance?

The COVID-19 pandemic drastically altered lives and saw travel grind to a near halt. However, with a new year now underway and vaccines for everyone rolling out, travel is expected to come back in a big way. Airbnb conducted a survey that found over 54% of people expect to travel in 2021.

If you’re looking to get involved in the Airbnb industry, then one of the first things you’ll need is host protection insurance.

Airbnb Host Protection Insurance is a liability insurance program. It helps cover costs for a host’s legal responsibility. So, if a guest or third party is injured while on the premises, or if their property is damaged because of an incident related to their Airbnb stay, then this type of insurance provides assistance to the host.

Does Airbnb Offer Insurance Protection?

The Airbnb Host Protection Insurance program isn’t technically insurance. However, it does offer some assistance.

Its coverage extends to Airbnb hosts who have third-party claims filed against them due to an Airbnb stay. Their “insurance” can provide up to $1 million for liability. Airbnb Host Protection Insurance cost is free as you are automatically enrolled in the policy to list your property. 

trashed airbnb host insurance

However, it’s worth noting that there are significant gaps in Airbnb’s coverage. They don’t cover for the loss of income, mold, assault and battery, acts committed by intoxicated adults, or damage caused by minors. There are many different terms and exclusions for what is covered that make it difficult for hosts to receive reimbursements beyond minor problems. 

Airbnb’s host protection should be treated as supplementary and isn’t meant to be a replacement for your primary homeowners insurance.

What Happens if a Guest Gets Injured in an Airbnb?

If a guest is hurt while staying at an Airbnb, they can file a personal injury lawsuit against the host. The host is then liable for any and all costs incurred.

Since there are many gaps in coverage offered by Airbnb, it is essential that a host acquire short-term rental insurance.

Property Owners Need an Airbnb Insurance Company

In most cases, standard homeowners insurance doesn’t cover property damage or injury a guest may suffer during an Airbnb rental. If you haven’t informed your insurance provider that your home is now an Airbnb, you can even find your basic policy outright canceled.

Using your home as an Airbnb is short-term renting, which basic homeowners insurance doesn’t cover. You need specialized business coverage from an insurance provider for your Airbnb.

How Is Host Protection Insurance Different From the Host Guarantee?

Airbnb’s Host Protection Insurance and Host Guarantee are two different programs offered.

Host Guarantee is meant to be property damage protection. Airbnb can provide up to $1 million in property damage protection should the host’s place or furnishings be damaged by a guest. For example, if a guest spills a glass of red wine on the carpet and refuses to cover the cleaning costs, the host can request a reimbursement from Airbnb.

Host Protection Insurance is a liability program. Airbnb might offer up to $1 million in liability coverage to help with a host’s legal responsibility should a guest be harmed while on the property. An example of this would be a guest falling and breaking their arm. The guest could sue the host. Host Protection Insurance would feasibly help cover the host’s legal fees.

airbnb host protection insurance vs host guarantee

Hosting Your Property on Airbnb Requires a Comprehensive Insurance Policy

Remember that both Airbnb’s Host Protection Insurance and Host Guarantee cover the absolute bare minimum. It is meant to be supplementary coverage and shouldn’t be your sole protection.

If you want comprehensive coverage that will protect you from a range of incidents, you need an insurance policy designed for Airbnb short-term rental properties. M&P Insurance in Newport, Arkansas can help. In business since 1925, M&P is dedicated to being a one-stop point for all your insurance needs, from travel trailer insurance to umbrella coverage.

Frequently Asked Questions

What is an Airbnb?

Airbnb stands for Air Bed and Breakfast. An Airbnb is a residential property like a home or condo that is rented on a short-term basis to guests.

Can an Airbnb host sue me?

If you are a guest at an Airbnb and damage something on the property, then yes, the host can sue you. Anyone can sue for anything. However, that does not mean the court will rule in their favor.

Who pays for the Airbnb host protection insurance program?

A host is automatically enrolled in the Host Protection Insurance program when they list their property. Airbnb has a policy through an insurance provider and pays the insurance premiums for the program.

What is the cost of Airbnb host protection insurance?

There is no additional cost for the program to the host.

How much does host protection insurance affect HOA insurance?

Every HOA is different. Before you list your property, you will need to check with your HOA board members to ensure you aren’t violating community rules.

If the HOA allows an Airbnb, that should mean its insurance will not conflict with the Host Protection Insurance offered by Airbnb.

Contact us today to speak with a representative about getting Airbnb insurance!

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