@Norma160Correct... they don't take it unless there is a claim. I have a guest from Home Away staying at my cottage this week, and I feel much safer knowing that I actually have their deposit and can keep it if anything happens. I'm not sure that Airbnb is the best choice for whole home, offsite hosts when it comes to damage. I don't worry as much with my home hosting listing (an apartment in my house) because I can keep an eye on things.
Another reason Airbnb doesn't work for me for my cottage bookings is the cancellation policies. I make all the money on my cottage in July and August, and it pays all my costs for the year. The Airbnb cancellation policies aren't stringent enough and if someone cancels and I can't get a rebooking, I'm out the money.
My main issue with Airbnb is that they don't seem to believe that hosts have sound judgement: we can't choose when to apply the security deposit, and can't decide when to offer a refund without having our hands held.