Host Guarantee

[Kristin1107]

Has anyone else had a terrible experience, and had AIRBNB refuse to rectify the situation? 

In my many years as a superhost, I have never filed a damage claim.  But in this case, the damage is around $1400 and AIRBNB is just refusing to cover damages, even though evidence of damage along with receipts has been provided.

VERY unhappy superhost here.

[Kristin1107]

Good point!

[Sarah977]

@Susan1188  Of course we all know that damage does happen, from small accidental damage to total disrespect and house trashing.

But frequenting hosting forums would lead one to believe that guests causing damage is the normal reality of hosting. Few hosts in the grand scheme of things participate in forums at all and few post to say everything has always gone great for them. They post when they have a problem.

So while none of us know what the percentage of damage claims are compared to the number of listings, there are plenty of hosts who have never had guests damage anything beyond small everyday accidents like breaking or chipping a plate. 

Hosts  experiencing a lot of guest damages has to do with the nature of their listing (i.e. big house that sleeps a lot of guests with off-site hosts vs private room or studio shares in the host's home), whether the host has set the place up with the understanding that guests won't always take care of things the way we'd like them to, the type of guests they market to and attract, the location, and how adept a host is at vetting guests before allowing a booking to proceed.

I have never had a guest damage anything.

[Ute42 · Accepted solution]

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@Kristin1107 @Susan1188 @Lorna170 @Pat271

I'm not sure if You have ever fully read the terms of the host guarantee. One of the stipulations is:

• VI. Airbnb provides Hosts with the Airbnb Host Guarantee benefits described herein solely for the purpose of promoting use of the Airbnb Platform by building customer loyalty and strengthening customer confidence as to use of the Airbnb Platform.

Do You understand the term „solely“? The purpose of the host guarantee is not to pay for damages, the sole and only purpose is to „strenghten customer confidence as to use the Airbnb Platform“. The customers are we, the hosts.

Every time we get a booking request we should feel confident to accept it. That's all the host guarantee is for.

[Pat271]

@Ute42 I can see your tongue there, planted firmly in your cheek.

[Ute42]

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@Pat271   

Do You  really think that's tongue in cheek?

If You, Pat, have a rental revenue of 10,000 USD per year, what percentage of that would You say are damages caused by Your guests, 2%? That would be $100.

The total gross booking value on airbnb in 2020 was 24 Billion USD. 2% of that would be 480 Million USD in damages caused by all guests worldwide in all of the 7 Million airbnb places. Where should that money come from?

Airbnb's operating loss in 2020 was 251 million USD. If airbnb had payed 480 million USD in damages to the worldwide host community, their loss would have been 731 Million USD.

Many people think airbnb agrees to pay a maximum of 1 Milion USD for each individual damage that accured to one host in reference to one reservation.

I though think that there is a budget of 1 Million USD per month for all the hosts for all damages. And if that is used up, then this was it for that month.

[Lorna170]

@Ute42   AirBnB should not offer anything beyond a secure transaction between a bona fide host and a vetted guest.  This business of host guarantee or guest protection should be removed, eradicated and done away with.  All hosts should be encouraged to obtain the proper insurance to protect their assets, and guests should purchase traveler insurance or have a credit card that covers travelling.  "Insurance" offered by AirBnB is smoke and mirrors, meant to enlist new hosts and attract new guests.

I don't care what Air's bottom line is.  I worry about my own.

[Nina75]

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@Ute42 wrote:

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@Pat271   

The total gross booking value on airbnb in 2020 was 24 Billion USD. 2% of that would be 480 Million USD in damages caused by all guests worldwide in all of the 7 Million airbnb places. Where should that money come from?

Airbnb's operating loss in 2020 was 251 million USD. If airbnb had payed 480 million USD in damages to the worldwide host community, their loss would have been 731 Million USD.

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@Ute42 To me this is very simple $480 Million divided 7 million properties = 7. Every host pays $7 per quarter or per year and it goes into a Insurance pool. As this pool is depleted the premium will raise or lower based on the number of verified claims and dips into the insurance. 

I just added a business rider to my Homeowners insurance policy and it came out to only $8 extra per month. This is basically in line with what AirBnb could charge to insure everyone. (I had to get the business rider to Qualify for a SBA Loan $25K for a Solar System). 

I really dont see any host that would be against that. If $7 is too much then they could tier the system to be based on the number of bookings. 

The only issue that it will be a target for people. 

[Sarah977]

@Nina75  You don't think any host would object? I would. It has nothing to do with the number of bookings.

I list a private room in my home. I get lovely, respectful guests. No guest has ever damaged anything. Why would I pay into a fund for hosts who have entire house listings where guests trash things and cause thousands of dollars worth of damages?

If hosts want to list entire homes where they don't live to keep an eye on things, they can pay for and use their own private insurance to cover their investments.

If I have $28 to burn every year, I'll give it to someone who can't even afford to own a home or buy food.

[Nina75]

@Sarah977  If they opt out then they can opt out... But the Idea of a group pool is that everyone contributes that's why the rates are so cheap. Half these people in the boards don't even have homeowners insurance so it wouldn't surprise me that some people wouldn't want to pay $7. Just like the lady who had someone die in her house and didnt have the money to clean and repair her unit, now she's upset at AirBnb because she didnt think that she would ever need insurance.

[Ute42]

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@Nina75  

$480 million devided by 7 million properties aren't $7 but apprx. $70. Other than that I agree with You.

I especially agree with Your statement:

• the Idea of a group pool is that everyone contributes that's why the rates are so cheap.

There should be no possibility to opt out, everone must pay the insurance fee. Hosts in general want to be covered 100% for damages, but the don't want to pay for it.

I wrote a long thread on the airbnb host guarantee on the german CC. In the end I suggested that we all should pay a dedicated insurance fee to be covered. But the reaction from my fellowhosts was, that noone wants to pay for it. That's not how life works.

https://community.withairbnb.com/t5/Gastgeber-unter-sich/Die-airbnb-Gastgebergarantie-zur-St%C3%A4rk...

[Nina75]

@Ute42  Sorry I forgot the Zero... hahaha I personally would still pay that to help others out.

[Kristin1107]

Ok, Ute - you’re obviously the smart one.  Why did Airbnb encourage me to utilize the “host guarantee” to recover damages after the guest refused to respond?

[Ute42]

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@Kristin1107 

Because that's what they always do. That's their standard procedure to reject claims.

[Mike2310]

I have made the suggestion to Air BnB in my dealing that they direct hosts to their own insurer first and foremost in the event of any claim on guest damages.  I tend to agree with @Lorna170 that Air BnB should remove the Host Guarantee and Protection Insurance stuff altogether...it's misleading, time consuming and a stressful process to go through.  Once a host begins the claim process through Air BnB, it has a detrimental impact on the hosts ability to claim through their own insurer...assuming everything is done above board and with transparency.

[Nina75]

@Mike2310  I highly disagree, i've used it several times and it has worked for me every time.

Ive been paid in the neighborhood of $15,000 for several different cases and it has worked well for me. It has saved me. 

People dont understand how to use it.