Whats the airbnb host coverage without a security deposit?

[Nicole221]

What is the difference between having the deposit and not having it?

[Gerry-And-Rashid0]

@Nicole221

The security deposit is for small items, minor damage - if you want to claim and the guest agrees to the damage.

Host guarantee is for total destruction...

You should also have your own home insurance to cover the middle ground..

[Nicole221]

so basically if its a small item it is NOT covered by airbnb without the deposit?

Also, I have home insurance but I do not know if it covers renters or just me?  Do you have added coverage for airbnb or just a regular policy?  It seems it would be much more expensive

[Gerry-And-Rashid0]

@Nicole221

If it's a small item then you first have to assess if it is just one of the perils of hosting. Someone breaks a glass...an accident. Are you really going to annoy a guest by chasing them for a couple of £ to replace a glass? It's good business to put aside a small amount from each booking to cover wear and tear and the odd small accident.

Can you claim for items if you don;t have a security deposit - you can certainly try. There are guests who, even without a security deposit in place, would pay if they did  damage. Others would not.

It makes no sense not to have a security deposit in place. First, it shows that there could be consequences if there is damage, second you are less likely to attract people who are intent on doing damage.

[Nicole221]

Thanks so much for the feedback.  I agree that the host does not always get reimbursed,  I learned the hard way myself, and now I am even extra careful about who I host.  but I agree with you on who I would be attracting if I remove the deposit from my listing.  I thought maybe it was deterring guests from booking with me so I was considering my options.

[Jennifer178]

Hi Nicole,

You cannot rely on Airbnb to cover the damages even when there is a security deposit.  It is often your word against the guests.  Pls look at all the posts about security deposits and the host guarantee. Everything is situational and not always resolved in favor of the host. Of course you read more complaints on the forum that good news.  

My insurance company gave me a homeowners policy with a special premium to cover my short term rental business.  They charged me an extra $60 for the additional coverage.   You need to talk to your insurance company about being covered for short-term rentals.  Some people have lost their insurance because they were renting out their space.  Do not find out after the fact that you have no insurance.  

[Nicole221]

Thanks so much for your response.  I agree and I had a guest incident where I was not in the wrong.  It did not turn out in my favor.  What insurance do you have?  $60 more a year seems not bad at all.  Do you mind telling me what your yearly premium approximately is and what company?

[Jennifer178]

I use Erie Insurance. My yearly premium is $400 or $430.  I have a multilevel condo thats about 1300 sq ft.  I know some of my HOA fees go to the bldgs master insurance plan. Erie was stress free and they also provide my sister with house insurance

[Nicole221]

Thats a great deal   Not sure if we have coveregae with that company here but thanks for the advice !

[David126]

Logically they should be different, however if there is a difference I have not been able to find out what it is. This question has come up before and people have opinions but that is about it. 

Most Home Insurers do not cover short term rentals, some will cover some aspects at an aditional charge. Insurance in the US is controlled by the State so there will be many different answers. As there is a lot of that sort of exposure in Florida you would think there would be options.

[Robin4]

@Jennifer178

That's great to hear about your insurance. Would you be so go as to provided a link to that insurance company. Short term rental insurance in the US has been a real issue, particularly finding a company that will cover both or work with a general household insurer.

I am sure it would be of great interest to other American hosts to be aware of this.

Cheers.....Rob

[Jennifer178]

Not quite sure how one sends a link.  I am old fashioned, I write everything down and have all important phone numbers in my head. The website is www.erieinsurance.com and the phone number is 1-800-458-0811.  They might be a regional carrier.  Their corporate headquarters are in Pennsylvania.  My sister would not have picked them if she had not researched them thoroughly and done her due dilligence. She is ususally right.  Very annoying 😉  Good luck to all. 

[Dede0]

@Nicole221 In actuality, neither means much at all. AirBnB's zillion dollar protection *might* kick in if a guest set off a nuclear bomb in your listing and was publically caught at that, but you'd only see any compensation after spending hundreds of hours on hold on the phone, and then making your case through layers and layers of case managers. Don't count on that.

The host-specified "security deposit" is equally as much vapor. You don't set a security deposit in hopes of it ever paying off if necessary (because it won't, thanks to AirBnB's anti-host policies); you set it to simply serve as a warning to potentially misbehaving guests that you have such a thing and they might (in a blue moon) be held to such a thing.

DO set a substantial security deposit for your listing. DON'T count on it meaning anything to AirBnB.

[Nicole221]

Thanks Dede.  Sounds sad but true.  Its better to be informed