Hi Eleanor, as a fellow host amazed at how uncannily cool this new business Airbnb seemed to be we had a couple of similar experiences a couple of years ago. First relative pennies as with your £200 and then a large unnauthorized party with damages of around £8000. Airbnb paid out about 20%.
This is when we fell out of love with Airbnb and the cold realization set in that they are simply another cool couple of idea's doing well but with never the less, a cold corporate heart. The £1 Million of insurance cover is probably a complete myth. I say probably as we never got to speak with any decision maker in person on this subject. We were amazed how locked tight that floor is, absolutely no conversation. Thats it.
We had met along the way some great company people from the Paris gathering and others visiting the London office would even stay in our Old Street apartment. However when I started calling around trying to make sense of this refusal to discuss our claim no one wanted to know as there was nothing they could do.
My advice is to evaluate the situation, log the experience and be aware. Then just deal with it. Thats the way they do business.
I hope this helps.
Mark