extra insurance and risk, host guarantee

[Allison424]

Hi all, 

I am wonder who out there has extra insurance for their airbnbs. Why did you get it and what policy did you get?

I have had to file my first claim with airbnb after a guest smashed our stove but denied doing. I got through ok and was connected to a very nice helpful specialist. But a replacement was 860 and I was paid 172, which barely covers the cost. This is because of depreciation, which. I understand, but what about the fact that I didn't have to replace it before and now I do?

After reading so many horror stories on the community page was wondering if anyone else has been through anything similar and what your thoughts and recommendations would be. I know there is always a risk to hosting, but I am looking to be as pro active as possible here. 

thank you!

[Helen3]

It really shocks me how many hosts don't bother to take out specialist insurance for their STR businesses. It seems so short sighted to me. @Allison424 . There are so many areas that are not covered under Airbnb's 'Guarantee'  (which is not insurance).

The insurance that will be available depends on where you are based. You can either ask a local insurance broker to provide you with quotes or just look online to find out who is available.

I use Admiral but I am based in the UK.

[Allison424]

Thank you @Helen3 ! I appreciate your response. As a relatively new host I am learning all the ins and outs, and I think it sounds as if insurance is crucial. I will be looking into this today!

[Ann72]

@Allison424  You probably have homeowners insurance, but since not every policy covers short-term rentals, you have to tell your insurance broker you've put the house on Airbnb and have him or her find coverage for you.  Mine found it through Merrimack Mutual.

I can't get my head around "smashed the stove."  How and why?  That's crazy!

Your place is beautiful - hang in there, most guests are fine.

[Allison424]

@Ann72  Thank you so much! 

I do have homeowners insurance, I will get in touch with my agent today to see what that covers, thank you! 

Right!! I don't even know how you do that and then blatantly deny it was you! I think kids were rough housing and ripped off the siding on the microwave and it fell really hard and smashed the glass cooktop.  Because I also discovered that it had been ripped off and the screws were yanked out of the wall.Thats just a best guess though. And this is. after having the guest before sneak in extra guests and leave our hot tub in a shocking state. I needed to be reminded that most guests are fine, thank you! These are my first two run ins with bad guests, so I am very nervous for my upcoming reservations.

As for leaving a bad review-- I was thinking of this but this guest ADAMANTLY denies breaking the stove. He is a lawyer who spent an hour on the phone with me arguing saying it was my cleaning service-- who I have personally used for over three years, have a close relationship with my cleaning woman and she has always admitted to breaking or damaging anything. It would be unfair of me to take his word over hers after years of honest and great work done for me.  The best part- the son of my guest lost his wallet in the home. My cleaning service found it and sent along pictures showing all money and cards intact..... so I will be sticking with taking her word.  I think if I leave him a bad review it will turn into a bad review for me and ruin my 5 star streak thus far. I also just don't want to fight with the guy anymore! Any suggestions? Thank you so much I am new at this and appreciate your thoughts and time!

[Ann72]

@Allison424  Uuggghhh!!!  What a despicable person.  What a nightmare for you.

So - first of all he won't know whether the review is good or bad until he writes one himself.  Neither can see the other's review until both are written.

There's a possibility that he won't write a review.  And you don't have to write a review.

But what if he's planning to write a bad one and you want to get ahead of that?  You don't want to argue with him anymore.  So, just send him a neutral message.  "Thank you for your time on the phone the other day.  We consider this case closed."  You're not absolving him nor blaming your housekeeper.  You're just neutralizing a bad situation.

Then don't review him first.  If you get a notification that he's written a review, you will want to see it.  You will see it after 14 days whether you write one or not, but you can take @Sarah977's idea and simply write:  "Guest X and his family stayed for X days."  Then give him a 1 star in every category and say you would not host this guest again.  He won't see the stars and he won't see the thumbs down on hosting again.

If he doesn't review you, you could either not review him, or wait until 13 days, 23 hours, and 59 minutes and write the above review.  You'll get to mark him down and he won't get to review you at all.

[Ann72]

@Allison424  PS:  If you haven't reviewed the guest yet, a simple warning to other hosts is all you need:  "I don't recommend this guest to other hosts."  And straight 1s.

[Ian-And-Anne-Marie0]

@Allison424 

20% you got there.. More than the normal 12.5% but nowhere near what it cost you in actual damages. If you were a business depreciating assets it might be fair. But since you're a home owner and not depreciating assets, then it isn't.

Sadly, I feel and resent your 80% loss.

[Ian-And-Anne-Marie0]

@Allison424 

Considering your case further, it appears that if you're a home owner - as you are - renting on Airbnb, as the concept was initially founded, the insurance payment situation would not be tailored to your (or similar hosts) needs. It is more tailored to a business model suiting businesses who will depreciate assets and be quite happy with the depreciated value after the asset has been amortized over time.

In Brian Chesky's "Back to our roots" business drive, this would seem to need addressing as the "roots" are not businesses but home owners. In this situation home owners are being seriously and financially discriminated against by this insurance policy. @Catherine-Powell should add this one to her "to do" list.

[Allison424]

Thank you for your comments! I had no idea 12.5% was around average of what you get from a claim. That’s rough to say the least. 

it’s a really interesting point you make. I feel as though they market it too, as if we have the guarantee, one million dollars sounds great, comforting-

but only as you come upon these damages as a host do you learn how it really works. 
there has to be balance to depreciation and cost of replacement. There has to be more balance when your home is a business. And something more you can do when a guest blatantly denies damages. If you don’t take care of the homeowners I wonder how soon the risk outweighs the reward.