Airbnb Insurance for Hosts

Airbnb provides more protection than some other platforms but it’s not a replacement for insurance. Airbnb’s own website states this. Several gaps in protection could leave you exposed if you don’t have additional cover elsewhere.

How does Airbnb protect hosts?

When something happens and you want reimbursement, you’ll have to submit a request through Airbnb’s resolution centre within 14 days of the guest’s checkout. The guest has 24 hours to pay the Airbnb security deposit, after which you can involve Airbnb support. Airbnb says that their Aircover programme can potentially cover you if you aren’t able to resolve the dispute with the guest.

Aircover consists of two main parts for hosts:

1. Airbnb Host Damage Protection: Formerly known as the ‘Airbnb Guarantee,’ Host Damage Protection is Airbnb’s promise that they’ll cover you for property-related damages and Airbnb states this gives you up to $3 million in cover. If a guest broke an item or stole from you, you should (in theory) be able to claim through this.
2. Airbnb Host Liability Insurance: Previously known as ‘Airbnb Host Protection Insurance,’ this covers you for liability claims. If a guest is injured or damages a neighbour’s property and you end up being sued, you also get up to $1 million in cover should this happen.

Problems with Aircover (and other platform guarantees)

Aircover provides more cover than some other platforms but won’t give you the best protection. There are several gaps in cover that could give hosts cause for concern.

Airbnb doesn’t provide insurance for property damage

“The Host Damage Protection is not an insurance policy. To the extent you desire protection beyond the Host Damage Protection, Airbnb strongly encourages you to purchase insurance that will cover you and your property for losses caused by Guests or Guests’ invitees in the event your loss is not within the terms of the Host Damage Protection.”

Many hosts are unaware that their cover for property damage is not insurance or regulated by the FCA. You can’t complain to the Insurance Ombudsman if you’re not happy with Airbnb. They don’t have to follow the same strict standards as many insurance companies do either. If you solely rely on Aircover to cover you, you won’t get the same protective regulations that you may expect elsewhere.

Unclear terms and conditions

Airbnb states that Host Damage Protection gives hosts $3 million in cover. They don’t say if this is per property or a combined pot for the thousands of hosts worldwide. You’ll have a lot less cover if this $3 million is meant to cover every single host listing.

There are also several other exclusions and unclear wording in its terms and conditions that may give hosts pause for thought.

Poor resolution process

Unlike your typical insurance policy, Airbnb requires you to try and resolve any dispute with the guest first. But what if you don’t want to do this? This won’t be appropriate where criminal activity is involved and adds time and complexity to a stressful process.

Is $1 million in liability cover enough for injury claims?

$1 million per listing for Host Liability cover sounds like a substantial number, but what about larger injury claims? Imagine a life-changing injury to a guest with a lucrative career occurred. Factor in compensation for lifetime care and you could end with a case that exceeds $1 million in damages. If you didn’t have cover elsewhere, you could be on the hook for £1,000s in damages.

No legal cover

Host Liability Cover is meant to protect you against claims made against you but it’s not legal expenses cover. A good legal expenses policy can cover you for things like evicting overstaying guests or social media defamation

Other platforms offer little to no protection at all

VRBO is a similar platform that provides some insurance, but this is similar to Airbnb’s liability cover (e.g., guest injuries) and they don’t provide any protection for property damage at all.

Other platforms such as Booking.com don’t provide any protection at all the time of writing. This means that you’d have to pay for any damages if you didn’t have the right insurance in place. Additional cover is essential if you host on multiple platforms.

Taking out a dedicated insurance policy for Airbnb-style hosting isn’t a legal requirement in the UK. However, most standard insurers offer mixed cover at best, meaning you could be exposed without the right protection. The type of cover you need will depend on how you use the property. Below, we discuss some of the most common insurance FAQs.

What home insurance do I need for Airbnb?

If you’re renting out the primary residence you live in, then you’ll need home insurance to cover your property and you may already have this. The problem is that most standard home insurance policies are designed to cover residents and not paying guests. If your insurer doesn’t cancel your policy, most will place restrictions on guest-related cover or how you can host.

Hosts that rent out their primary home will need either dedicated host insurance to cover them for paying guests or a specialist home insurance policy that provides both standard and guest-related home insurance cover.

Does landlord insurance cover Airbnb?

Landlord insurance typically covers properties with long-term tenants on a minimum 6-month assured shorthold tenancy. Despite some similarities with being an ‘Airbnb landlord,’ most landlord insurers don’t provide adequate cover for Airbnb-style hosting either. A landlord renting out their property to paying guests is likely to have their policy either cancelled or any guest-related cover restricted in most cases.

What about Airbnb and holiday home insurance?

Holiday home insurance is usually a little better than home and landlord insurance when it comes to paying guests, but this type of cover is only relevant to people that own a holiday home rather than a primary residence or a property with tenants.

Most holiday home insurance policies still exclude cover for things such as theft and malicious damage by guests, however.

What does Airbnb host insurance cover?

Separate from what Airbnb or other platforms provide, host insurance is a type of insurance cover specifically designed to protect you against damages and incidents involving paying guests. In the first instance though, you should speak to your existing insurer to see what they will or won’t cover you for. If there are gaps in cover, getting dedicated Airbnb insurance such as the kind provided by Pikl will give you a significant boost in terms of protection for your property and income.

Legally, this depends on what part of the UK you live in. Scotland recently introduced legislation that requires all hosts to have liability cover in place. There are no current requirements for hosts in other parts of the UK to have liability cover although there are significant benefits to having it.

There’s no current minimum requirement for how much liability cover you need written in law. However, certain regions of Scotland do require a minimum amount of cover, which you will need to check when applying for your hosting licence. For more information, please check out the Scottish government’s website. However, for specific information about public liability cover in your region, you will need to contact your local authority.

Airbnb hosts can be held liable for anything that goes wrong at their property, whether that is something that caused an injury at the premises or damage caused to third-party property. The best way to protect yourself against liability claims (other than having the right cover) is to make sure your property is well maintained, regular checks are carried out and guests are thoroughly vetted.

Currently, we only cover properties located in the UK at the present time.

The premium for a host insurance policy depends on what and how long you need cover for. Click on the ‘Get a quote’ button to get an insurance quotation and a cost. We always aim to provide the most value for money.

If a guest is hurt in your Airbnb property, you should make sure as a host that your guest seeks medical attention as soon as possible if needed. Document what happened, including when the incident occurred and any photographs if needed.

If the guest holds you responsible for the injury, then it’s important to speak to your insurer or platform provider (e.g. Airbnb) as soon as possible. That’s why having the right insurance in place is important.