Debbie25
Level 2
Townsend, TN

using host protection insurance and airbnb's response

Hello everyone,

I am fairly new to airbnb hosting and am curious about how the host protection insurance works. I have read all the information that airbnb posts but is there a sign up for this? And is there a cost? Or are you automatically enrolled when you become a host? Nowhere on the site can I find info that it is INCLUDED for free. It just says "it's available for hosts" which could mean something entirely different.

Also, has anyone had to make a claim for damage and what was airbnb's response? So far, I am really happy with airbnb and it has certainly helped us with upping our rental dates, but I have read a few posts on airbnb from hosts that were very dissatisfied with how their damage request was handled, or not handled at all. A response from airbnb would be very much appreciated!

Any info would be helpful!

Thanks so much,

Debbie

Diane84
Level 4
California, United States

I have had to use it twice and was happy with how it was handled by Air BnB they were fair in their judgement I thought. Be sure to take photos and get estimates for the damage so they have something to go by besides he said she said. The damage I had was to a lock, small amount and once a small burn to a rug.

Linda108
Level 10
La Quinta, CA

Hi @Debbie25.  The primary purpose of the host protection plan which is automatically provided for all hosts, is to protect you in liability circumstances.  That is someone is injured on your property, etc.  Security deposit handles the relatively minor damages that can occur with even the best guest.  Major property damage can also be handled under the host protection plan, however, like all insurance, it is up to the insurer to determine how much to pay.  Many hosts have explored their own home owners insurance plan to find that damages caused by a paying guest are not covered.  You can enter the search terms of insurance, claim, resolution into the search function on the site and see many discussion threads about this issue.  The feedback seems mixed about how hosts feels Air BNB has handled claims.

I inquired to my insurance company today and was informed if my current carrier became aware, they'd cancel my regular homeowner's insurance.  Going to be hard to hide with a business license to operate properly.  Are there any other companies who specialize in Homeowner's hazard insurance you can recommend?  Also, I'm going to have to read my mortgage as one of the comments I read today said they could also cancel your mortgage.  Yikes! 

Helen3
Level 10
Bristol, United Kingdom

Hi @Jo109

 

You are right you need specialist home insurance to cover short term lets. Not sure who offers this in the US, but a quick Google search should come up with details of those who offer it.

An "add on" policy doesn't help me.  My current insurance carrier can drop me completely or use the fact I'm doing short term rentals, specifically not covered in my hazard policy, and not pay any claim I might have, regardless of whether I had a guest at the time or not!  Huge problem.  May have to abort the Airbnb plan if I can't get it straightened out.  We already pay some of the highest rates in the country so not looking forward to anything that's going to cost in the $1,000 more range either. 

 

Frustrated! 

 

Jo

Hi Jo!

 

Are you with Citizens too? My agent told me the same thing so I'm looking for options. The best quote I got so far has a 60% higher premium than Citizens and a higher windstorm deductible too. I don't know what to do because I'm just starting out and have no idea how Airbnb is going to work out for me and if it's going to be worth the extra cost. I wish I could just try it for a while but I can't take the risk of losing my home insurance coverage.

 

Also frustrated in Florida!

 

Eva

Hi Jo, Not sure how it works in FL, but I'm in TN. We have a business license to operate so that is good. We have commercial insurance on the rental, that is what was required in our state. We also have another rental property that is leased long term and we have catastrophic and fire on it, and the renters have renters insurance. The commercial insurance is not much more than the insurance on our home but since it is a separate building we were able to do that. Not sure how it would work if you are renting a room or your own home.  Good luck!

 

I own the third floor in a three flat condo building. I have both buildling insurance - paid for by the association - which protects the overall structure and common areas including liability for bodily injury related to same. I also have a homeowners policy I pay for which protects the inside of my unit and contents.  In terms of the former, my insurance broker informed me that damage to the commonly owned areas of the building is not covered if caused wholly by Air Bnb guests. And as such our rates and coverage are not affected in the least. This is where the Air Bnb host insurance kicks in. As for the latter, frankly if damage is sustained to my personal property, I am under no obligation to disclose if it was caused by Air Bnb guests, my personal guests or myself.  

 

I suggest you look into a different insurance company and find a knowledgable broker. Mine is Travelers for both policies, and my broker is invaluable in this instance and for all the other policies he carries for me.

Ellen

 

I'd like to see documentation on a AirBnB payout for a personal liability lawsuit.  In other words, someone trip and falls and sues...will Air BnB be there?!?

David126
Level 10
Como, CO

The genral consensus seems that it is mainly a marketing ploy, should not be relied upon but can help you in certain limited circumstances.

David
Penelope10
Level 2
Los Angeles, CA

It works as long you provide updates of situations in case it goes bad. always document if there are damages and it helps a lot if you have another airbnb guest that gives their input of another airbnb way causing damages.
Debbie25
Level 2
Townsend, TN

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%!

Ralph13
Level 1
United States

How do I initiate a claim?  My carpet was damage, due to guest using a spot remover cleaning, however, it discolorated a large area on my carepet in two rooms. HELP!!!!!

HI @Ralph13  I hope you will make use of the Help Center for your understandable questions.  I looked there and found the following information about Air BNB insurance.

https://www.airbnb.com/help/article/937/what-is-host-protection-insurance