The Host Guarantee, covered here in so many threads over the last few years, is this:
1. A promise of a 'guarantee' that in its face suggest it is a 'free insurance', in case a guest causes damage.
2. It is a 'promotional' tool to get hosts to come to Airbnb versus the competition.
3. It by passes having a true 'Deposit' system that collects from the guest up front, something Airbnb doesn't want to get into, like other booking agencies have/do. It must be an economic 'advantage' in the market place NOT to have one, otherwise why not have one.
4. By having the 'guarantee', Airbnb is suggesting the host is 'covered' for damages, but then it fights every claim like a lion, and in this way they get the benefit of great advertising, yet not incur the cost of actually paying most claims.
5. Legally Airbnb can defend it because of the 2nd part of this 'guarantee' (see its 'Terms'). Within reason, its the U.S., where anything judicially is possible, it has thousands of judges, and it will only take one to upset the apple cart.
6. Hosts, on the other hand, understandably 'rely' on it, but can also easily 'abuse' it, by not doing their part of protecting their own property and just simply rely on Airbnb to solve any problems that arise, (aka the shirking of personal responsibility and not making smarter decisions).
7. IF more claims are indeed paid, there is one place where the 'cost' will be passed on to first - higher host fees. It wouldn't be from guest fees (12%-15%) because those are in line or just below that of other agencies, an economic advantage Airbnb probably doesn't want to relinguish.
8. SO, the day this policy is succesfully challenged in court (aka Airbnb looses), either of a few things will immediately happen: A-host fees will dramatically rise, B- Airbnb will dropped the 'Host Guarantee' and every host will have to have their own insurance or risk going without it, or C- get out of the hosting program altogether because the risk is now really not 'worth' it.
Personally, I wish Airbnb would drop it, keep hosting fees low and be no more than a referral booking agency, leave the rest up to the guests and host. And definitely allow a true deposit system. While at the podium, continue its review system, but get rid of labels, badges and trophies. Those two steps along will eliminate 90% of its 'conflicts'.
