Guest damages furniture but airbnb is only willing to pay 30% - sue airbnb

[Michael5163]

Hi all

I have had many cases when airbnb aircover did not want to pay the amount I was expecting but this time they went too far. I bought a brand new wooden table for 3000 USD and a guest damaged the table by putting hot pans on the table. The table was 3 weeks old and airbnb is only willing to pay 1200 CHF.

I am so frustrated with them and I am thinking about suing them. Has anyone experience with a lawsuit against Airbnb as a host?

Thanks.

Cheers

Michael

[Fred13]

They are willing to pay only $1245 USD? Most would consider that quite generous (and unusual).

Begs the question: why put a $3000 USD (wooden, no margin for error) table in a $115-a-night rental? 

And this is but one of many claim cases you have had already?

[Robin4]

@Michael5163 

Michael, @Fred13  is right! When I decided to short term rent a very wise person said to me....."Don't put anything out there in your listing you are not prepared to loose"!

A $3,000 US table does not belong in a rental facility, you see Airbnb are going to not only say the claim will be subject to wear and tear.....they will claim a $3,000 US table is not appropriate in a $115 pr/night STR facility. 

Would you hang a Picasso on the wall.....have a 'Ming Dynasty' dinner plate setting for guests to abuse?

You might be very proud of your property Michael, but guests won't be, and you freely admit to having a prolific past history of claiming guest damage.

In 6+ years of hosting I have never lodged a compensation claim to Airbnb for guest damage! That's not to say I haven't had items lost or ruined, I have made sure they are functional without being a potential liability that I needed to be compensated for, and I have built a replacement cost into my listing amount.

There is an old saying Michael......"Cut the cloth according to your coat" .....if Airbnb offered you 30% of your claim, I would think you have been treated fairly kindly! 

Cheers.........Rob

[Mike-And-Jane0]

@Michael5163 I wish Airbnb would use get rid of Aircover for hosts and leave them to get their own insurance. I wonder what discount they could give on the hosting fees if they did this.

Aircover for damage is not an insurance policy and hosts should not be surprised if it doesn't pay out full amounts.

[Robin4]

@Mike-And-Jane0 

Spot on Mike, but I wouldn't expect a discount on hosting fees! In the latest TOS they even want to start charging again for preferential search placement. Enough blood is never enough blood for Airbnb!

Cheers........Rob

[Michael5163]

Hi all

thanks a lot for the clarification. Just to explain, the house is actually mine and I rent it (excluding my private rooms) when I am travelling, that's why I have expensive furniture in there. 

According to Airbnb advertisement of AirCover and the Terms and conditions of Aircover this should not be a problem and such damages should be covered as it is with a normal insurance but it turns out, it is just a fake what they say and advertise with. They don't judge the amount to be paid as an insurance but all they do is try to keep it to a minimum with best guesses and with no proof how the final amount was evaluated.

Clearly they should stop this AirCover fake and advice hosts to have a private insurance.

I think I will be looking into a private insurance here.

All the best

Michael

[Mark116]

@Michael5163  That answers the question of why you put a $3K table in an Airbnb.  You can research Airbnb's arbitration feature and potentially ask for that.  It does seem that 30% of the value of a table that is only 3 weeks in use seems unfair.  You might also look into whether you could get the top resurfaced?  Did you ask the guests who damaged the table to pay?

But, yes to your larger question, Airbnb's various coverages,guest and host, are more for public relations value than for actual value to the users.

[Joanna592]

Normal household insurance is not valid for STR ( in Australia) must take out landlord policy . I would not host without it . Risky to rely on Airbnb insurance. Definitely don’t put anything in a rental you can’t afford to have damaged . In light of so many claims perhaps look at your demographic and adjust accordingly. 

[Robin4]

@Joanna592 

Hi Jo, almost all Landlord Insurance companies like Terri Sheer will not cover STR! They will only cover long term rental contracts. Probably the best STR insurance in Australia is EBM Rentcover. They will offer you fully defined cover for a set annual premium.

https://www.rentcover.com.au/insurance/short-term

The other workable option which offers insurance by the hosting night is ShareCover.

https://www.nrma.com.au/holiday-rental-insurance

With this option you only pay for cover when guests are present and if you elect to have a high excess ($1,000 or more) the premium is peanuts!

Cheers........Rob

[Joanna592]

Hi Rob . I have the exact cover I need from Elders insurance, I believe they are popular in this region. Highly recommend.