Have you finally decided to join the vast Airbnb family of renters? Nowadays, many homeowners are encouraged to earn extra income by leasing their houses, flats, condos, and RV’s on this lodging marketplace.
Many aspiring Airbnb renters are concerned about the insurance policies, which are supposed to provide coverage for third-party claims. Fortunately, this company offers two types of protection for hosts without requiring any registration or sign-up.
It’s of essential importance for renters to familiarize themselves with these policies so as to set their expectations. Not only hosts but also guests are covered by the policies, as the aim of Airbnb is for everyone to have a positive experience.
The information below will introduce you to all the details.
What is it?
Airbnb insurance is available in two types of coverage whose role is to protect the hosts from potential damages. These coverage forms are known under the name host protection insurance and host guarantee. The former takes the form of a liability policy, which covers injury and property damage claims by third parties, whereas the latter is designed to cover the damage caused by guests on your property. Read more about the history, regulations, and terms of use of Airbnb.
Hosts are enrolled in these insurance programs automatically whenever a guest books their property. Nevertheless, the eligibility criteria for coverage are determined by the laws of the country or city related to home-sharing. The properties of homeowners are also protected against damages, provided they rent their houses/flats occasionally. The rental period is determined by each insurer, meaning it’s not universal.
What does Airbnb insurance cover?
Airbnb’s host protection insurance protects renters whenever a guest or another person makes a claim against them. It covers the cost of injury claims along with any property damage. For instance, slip-and-fall accidents are covered by this insurance, as it often happens for guests to slip and injure themselves while walking out of the shower. Consequently, they file lawsuits against the hosts and expect to get compensated.
Moreover, even if some of your guests get injured while using the gym, swimming pool, or any other public amenity, the host protection insurance will have these claims covered as well. The protection is extended anywhere within the property, such as the lobby of the building where your apartment is situated, as well as any mobile homes and automobiles listed as accommodations on the site of Airbnb.
What does it not cover?
Even though host protection insurance covers potential damages done to the property, it fails to protect the belongings of hosts inside the houses/apartments they rent to guests. There is a difference in coverage between Airbnb insurance and Airbnb host guarantee. For instance, according to the former, renters aren’t likely to receive compensation if having their jewellery or clothing stolen or their furniture damaged.
When facing theft by a guest who stole some of your personal belongings, you can’t rely on Airbnb insurance or even your personal homeowner’s insurance to cover the loss. These policies rarely include theft occurring in homes used by guests who pay for their stay. Airbnb hosts having no other insurance policy face financial risk due to possible coverage gaps.
In addition, Airbnb protection insurance fails to cover claims linked to intentional crimes, assault and battery, bacteria or fungi like mould, loss of earnings, asbestos or silica, Chinese drywall, terrorism, pollution, product liability, etc. It’s paramount for hosts to communicate with insurers in order to figure out the number of days they are allowed to accommodate guests without being considered a business activity.
What does Airbnb host guarantee cover?
As far as your property is concerned, the Airbnb host guarantee covers any damage that guests inflict on your house/apartment and personal belongings during their stay. This type of agreement is a form of guarantee, which has similarities to personal property coverage. Hosts are provided with a period of thirty days following the incident to complete the claim process.
The first step of the process is to get in touch with the guest responsible for the incident to try and come up with a resolution. After the guest checks out, hosts are expected to contact him/her within fourteen days and notify Airbnb if he/she isn’t willing to compensate for the damage. Apart from letting Airbnb know about the refusal of the guest to pay compensation, renters are required to take other steps as well.
For instance, property owners are obliged to provide documentation related to the incident, comprised of proof of ownership, description, and photographs of the damage to the house/apartment. Anyhow, any failure of hosts to abide by the timeline is likely to result in disqualification and preventing them from receiving reimbursement.
By making a successful claim, hosts can receive compensation that’s equal to the cash value of the belonging. Nevertheless, they cannot receive replacement coverage on the item like in the case of regular insurance. Also, this type of guarantee doesn’t offer protection for damage incurred by weather elements or mould and mildew. You will be denied protection if some of your guests cause an injury to your pet. This guarantee isn’t valid for special belongings like collectables, jewellery, and artwork.
How is Airbnb protection insurance different from the host guarantee?
It’s important for property owners listing their houses/apartments on Airbnb to understand the difference between these policies. For example, the protection insurance serves to protect hosts against litigation, while the guarantee is more of a protection for one’s personal belongings. This guarantee only applies to the items within the listing.
If the listing is just for a single room, the coverage applies solely to the items within this room. In contrast, the items in the shared kitchen, lobby, or other common areas aren’t protected. Additionally, the guarantee fails to provide coverage for regular wear and tear done by hosting a large number of short-term guests. Consequently, mattresses and permanent fixtures aren’t eligible for coverage because of the expected wear and tear.
Wear and tear are considered an unavoidable aspect of hosting, which makes it dissimilar from intentional or accidental acts of inflicting damage. Hence, Airbnb hosts cannot expect to receive compensation for their deteriorated floors, loose doorknobs, or discoloured faucets. The following URL, https://homeguides.sfgate.com/rid-discoloration-chrome-faucet-41423.html, includes some handy tips for getting rid of the discolouration on a chrome faucet.
Moreover, items of high value don’t receive the right coverage under these policies, which is why renters are advised to remove their artwork, antiques, and pricey jewellery pieces from their rentals. Conversely, the coverage for pet damage makes hosts wonder whether to allow visitors to bring their pets. The Airbnb guarantee covers no damage done by pets while the risk for it is substantial.
The choice of whether to allow pets is up to the property owners, as this decision comes with specific advantages and disadvantages. Even though allowing pets would differentiate you from the competition, it’s likely to get your rental damaged. You can allow pets for a while to see the outcome, but you are able to make changes to the policy at any time in the future.
Do you need to inform your home insurance company?
Another thing for individuals to consider is whether they need to inform their home insurers about their decision to become Airbnb hosts. The truth is that most insurers aren’t aware of the popularity of this lodging marketplace and haven’t made any adaptations to their policies.
It’s vital for you to let them know about the decision to accommodate Airbnb guests in order not to face issues when filing a claim. Your insurer might refuse to pay compensation because of blaming you for withholding important information. Anyhow, insurers aren’t likely to pay claims to people staying in the homes of policyholders.
What about the protection of the guests?
The ultimate goal of Airbnb is for both hosts and guests to be positively surprised by the services of this platform. Hence, their insurance policies are designed to protect both parties. Guests are protected against any unexpected situations that might arise during their stay. Since accidents are likely to happen, visitors might damage the property in some way or injure themselves. In any event, the protection policy of the renter will cover the costs.
A final note
Make sure to have all the facts straight before undertaking such a hosting journey.
Being properly insured is an indispensable part of the process!
