Thanks for all the information! I get a lot of questions from guests about my high security deposit ($500), but when I explain that they don't actually have to pay unless there are damages, most seem to be OK with it. I probably do lose some rentals, but really, maybe that's for the best. I keep it high because I allow pets and one guest (before I was on airbnb) left their dog all day long and he ripped down 3 of the custom made shades! We have insurance for nightly guests from our insurance company, but $1000 deductible, so it looks like maybe the most we would be out would be $500 (after the security deposit kicks in) if we do have a large claim.
So far, airbnb has been great for us, we have increased our rental income by about 200%!