Airbnb is good insurance coverage for most hosts. It includes $1 million liability insurance and $1 million in damage protection. Here are a couple things to consider.
Below is the coverage that aircover is advertising as their coverage.
What is Liability insurance versus damage protection?
Liability is the protection against accidents of injury to a guest on your property. So if you are liable for an injury that appears to be your fault – Aircover covers this for up to $1 million. An example would be if a guest trips over a can of paint that you inadvertently left out.
Damage protection protects YOU from damages by the guest. If your guest damages the place you will be compensated for the damage to your place or belongings.
Do I need Personal Insurance if I have Aircover?
You do need additional coverage. While Airbnb does cover you when you are hosting an Airbnb stay, or experience, it is not a substitute for personal insurance. An example: between events, you as a host, have a break-in which included vandalism. This was not caused by a guest and would most likely be handled under your own insurance.
What does Aircover not cover?
Aircover does not cover normal wear and tear or natural events such as earthquakes and hurricanes, or riot, rebellion, insurrection, war or terrorism. It also does not cover identity theft or identity fraud. It also does not cover unexplained inventory loss.
Any damage not caused by a guest; such as mold or insects or pests (not related to guests).
Also know, any theft by an employee or persons retained by you is not covered.
Speak to you own agency for coverage in your area.
Do I Need to Let My Old Insurance Know I am Doing an Airbnb?
You must let your insurance company know that you are using your house as an airbnb (or your other property). Most insurance companies will adjust to a type of policy that handles short-term leases (Airbnb types) rather than long-term leases or owner-occupied insurance.
Your insurance company may be good with it, but it’s important that you check. It may be that your insurance and Aircover overlap a bit; which is okay, you just don’t want holes in your coverage. A good agent should be able to tell you. Note, I was told by Nation Wide that they would not cover a property that was short term rental – you need to make sure your insurance will.
Are there any Horror Stories of Airbnb Not Covering Claims?
There are some hosts that claim Airbnb did not adequately assist or cover them. These claims are rare and keep in mind, even if there are some issues, there are millions of experiences a year that go flawlessly.
If you have an issue do let me know and I will share it with this community. My intent is always to educate our readers.
The main thing to keep in mind when having a claim with Airbnb is to submit it timely. There is a 14-day filing window. In most cases this should be plenty of time; as long as your an active host and are diligently working to give your guest the best experience possible this should not be an issue.
Do I need Local Specific Insurance Coverage?
When you speak to a reputable insurance agent she/he will consider coverage necessary for your area, like hurricane and earthquake.
Here’s a couple of the more well known insurance companies – I excluded Nationwide, but perhaps they are different in your area or have changed their policies.
- Farmers Insurance
- American Modern
Is There Any Hidden verbiage in the Aircover Insurance?
Here is what the Aircover says about coverage for the host
“Airbnb agrees to pay you, as a Host, whenever the Responsible Guest fails to do so, to repair or replace your Covered Property (as defined below) damaged or destroyed as a result of a Covered Loss (as defined below), subject to the exclusions, limitations, and other terms and conditions of these Host Damage Protection Terms. You must comply with all of the terms and conditions of these Host Damage Protection Terms in order to be eligible to receive any payments for Covered Losses. Your failure to fully comply will prevent your recovery for any Covered Losses. Please carefully review the definitions of “Covered Accommodation,” “Covered Losses,” “Covered Property” and “Excluded Property” as well as the “Limitations and Exclusions” section below so that you may identify and protect property not covered by the Host Damage Protection.”
My take away is if something happens read your Aircover rules quickly and very carefully.
What Does the Excluded Mean in Aircover Insurance?
Aircover specifically excludes the following from it’s list of coverage – it will NOT cover them under Aircover:
- Currency, money and precious medals (such as gold), notes or securities.
- Land, water on anything in or on the land. This does not include landscaping land improvements such as roadways or pavement.
- Animals, including livestock and pets
- Standing timber/trees and growing crops
- Jet skis, boats or other watercrafts (unless the actual watercraft is the covered accommodation – but if you move this accommodation you might not be covered.)
- Vehicles – but the exclusion does not apply to a vehicle which is a covered accommodation. So if you’re hosting an accommodation as a BUS you’re in luck. However, if you choose to move this BUS from it’s fixed position – not so much. If you move this BUS greater than 10 feet or faster than one mile an hour and it gets damaged you are not covered. Note: This vehicle must be stationary and used solely for lodging purposes.
Will Aircover Pay for Out of the Ordinary Excessive Cleaning Costs?
Aircover will cover the extraordinary cost that might be incurred by a responsible guest or a responsible guest’s invitee of the responsible guest. The costs must be reasonable and unexpected cleaning costs. Only cleaning costs in excess of the cleaning fees paid to the Host will be paid.
Will Aircover Pay Out for Loss of Revenue If Something is Disrupted in My Area – Such as Construction, Rioting, or Code Changes.
Aircover will not cover the loss of revenue due to something not caused by the rental itself or the guests. For example: construction closes your street for two weeks. This would not be covered loss of revenue by Aircover.
Rioting would be the same as hurricanes and earthquakes; it’s not covered but check with your own insurance.
State, County and City Code changes happen from time to time; Aircover does not cover such changes – perhaps your personal insurance will cover this, it’s worth reviewing even if it’s unlikely.