WHY WILL COVID-19 BANKRUPT HOSTS AROUND THE WORLD?

[Michael303]

COVID-19 WILL BANKRUPT HOSTS AROUND THE WORLD BECAUSE AIRBNB REFUSES TO ACKNOWLEDGE THE EXISTENCE OF TRAVEL INSURANCE!

Travel Insurance is easy and inexpensive for Guests to purchase. The lack of travel insurance protection is completely devastating for Hosts!

For 3 1/2 years I have been trying to get AirBnB to listen. Well, unfortunately, a global pandemic is going to bankrupt hosts around the world because AirBnB refuses to make legitimate travel insurance available for booking guests.

VRBO and HomeAway do such a superior job offering travel insurance to their/ our guests.

1. If you drive a car without insurance and get into an "unforeseen" accident, you are responsible, not the person you ran into. If you book a trip without travel insurance and something "unforeseen" happens, you are responsible, not the person who is hosting you. 

2. I have to carry liability insurance, flood insurance, homeowners insurance with an added hotel policy on top of that on my building to protect me and my guests for short term rentals. I would carry travel insurance for all my guests if I could... no wait it do?! It is AirBnB's insane policy of refunds?! Hosts are not Insurance companies. 

3. I think it's beyond unfortunate for Airbnb, hosts and guests that Airbnb does on hold guest accountable for travel insurance. The simplest way to handle this is to explain travel insurance up front - prior to booking and let guests know it's their responsibility to purchase it or guests will be taking the risk themselves. Travel insurance has existed since the beginning of modern travel. 

4. Airbnb Actually Recommends Travel Insurance. (the AirBnB link is blocked by AirBnB) Airbnb offers refunds at the host’s expense. It is completely unacceptable as a policy and puts the hosts in an untenable situation of loss that cannot be recouped for last minute cancellations – which, by the way, is why trip insurance exists.

5. Suggestion: if Airbnb wants to act like an insurance company and refund guests their money then charge a fee ($35 – $45 to be competitive with trip insurance companies) for that service.

This part of the Airbnb & Host relationship is 100% unfair and 100% unprofessional. Hosts are not Insurance companies. This policy is insane. Travel insurance has existed since the beginning of modern travel.

Airbnb is hurting the small business owners who are the reason Airbnb is in business at all. Shame on them for allowing this and for interfering with legitimate trip insurance companies who protect the owners as well as the traveler when situations happen outside of either parties control. Airbnb clearly is not protecting owners and their businesses with this kind of policy.

[Helen3]

With home insurance for STR you can choose to take out cover to cover loss of income in situations like these @Michael303  @Emma690 does your specialist home insurance include such cover ?

[Michael303]

Yes, it’s called business interruption insurance. But, it only covers physical damage to your home like fire or storm damage. 

[Helen3]

No I am talking about loss of income cover @Michael303 

[Ian-And-Anne-Marie0]

@Helen3 

I just received an email from Boshers insurance company. We don't use them, but have enquired with them in the past, I'll paste the info:

Loss of Income

• Under our holiday home insurance contract and in common with most other insurers, there is no cover for loss of income under the specified diseases extension as COVID-19 is not one of the specified diseases we cover.

[Helen3]

That's interesting, of course it can't be a specified disease, it's completely new.

Good note to all hosts to check what the loss of income clause is regarding this on their policies. @Ian-And-Anne-Marie0 

[Emma690]

I thought I was covered by my insurance brokers say they will be considering claims on a case by case basis and the underwriters say they definitely won't be paying out for cancelled bookings.  It took me over 2 hours on the phone to find this out.

[Michael303]

@Emma690 and I also thought the same. But, business interruption insurance only kicks in if there is physical damage (like fire or flood) to your property. I will be calling legal council on Monday. 

[Ian-And-Anne-Marie0]

@Michael303 

Some great contributions on this thread.

There are answers of course, it seems more particularly if you are designated as a 'holiday let' business where things like business interruption insurance and loss of revenue might more prominently feature. But many hosts don't allude to that classification, operate on a level only just sustaining an existence, yet do understand that a 'fair' deal should be appropriate. Hosts always push to provide 'that something extra' provided as a pride in their product and as a good service to guests, but when guests are subject to some mishap it is Hosts who become the fall guys for circumstances beyond their control.

As travellers, we know the problems which might beseech us, so we arrange travel insurance. Because 'we' do that we expect it to be normal that our guest would do that, but they don't. 

Anything to encourage guests to obtain travel insurance would be a good thing, otherwise all the Hosts who share their homes will simply become 'businesses'. I don't believe that this is what Airbnb is all about, but it certainly feels like this is the direction hosts are being forced.

For reasons I won't go into, an upcoming guest explained to me that they were 50/50 on whether they would want to arrive on their due dates, and wanted to know how late they could cancel. We have a strict cancellation policy.  It was CV related, theres no regional restrictions, travel was in the same country and the area we are situated is a less dense population than much of the rest of the country, including the areas these guests were travelling from so a lower risk to them... It came down to the fact 'they' just didn't fancy travelling then, and they would let us know. Their visit is quite close, anyway they requested to change the reservation to later in the year when there may possibly be restrictions, extenuating circumstances might apply, and we would be looking at a potential 100% loss. We declined. We were asked why so I again explained our cancellation terms and that it would be very unlikely that the dates we had held for them for the last 4 months would not be able to be rebooked. The guest replied "I understand you might make a loss, but it will cost us £xxx " (being the whole booking cost - it wouldn't, it would be 50%). I do feel for the guests, but we should not be the guests insurers and we are not a community chest giving out "Get out of your booking - FREE" cards. There was no conversation about this action, they just did it and expected it would be accepted. That does leave an awkward situation to be handled.

I started a thread about the whole insurance situation and potential answers to problems over on the Host Circle. Do feel free to contribute.

https://community.withairbnb.com/t5/Host-Circle/Bun-Fights-Guest-Insurance-Hosts-providing-travel-in...

@Sky13 @PaulaCristina0 @Emma690 

[Jillian132]

Airbnb extension of their extenuating circumstances policy!
It’s totally wrong. Previously, it was fare with guests losing 50% of their ‘holiday’ cost and hosts losing 50% of their LIVELIHOOD. But now all guests are being encouraged to cancel as they have nothing to lose. But for us hosts it will have a serious financial impact. This isn’t right at all. Class action against them is needed. What do you think?

[Michael303]

THEY ARE REFUNDING 100% TO TRAVELERS THAT HAVE TRAVEL INSURANCE! 

They have made this blanket statement to refund 100% of the booking cost. 100% at my expense. Travel insurance is 100% covering this. THERE WILL BE A MONSTROUS LAWSUIT FOLLOWING THIS.

[Ann25470]

I agree

[Sheila22]

And the interesting thing is that even if a Guest bought travel insurance they are collecting from the insurers PLUS getting full refund from Airbnb. 

[Jillian132]

Lets form a group to start a Class Action against Airbnb

[Michael303]

It’s coming.

[Sheila22]

Do you know if there really is a class action suit coming?  I keep hearing from people (on these forums) who say it's coming but I for one don't know how to begin one -- but of course I want to sign on if anyone gets one moving.