Airbnb insurance comes in two forms of coverage that protect its hosts from damages: Host Protection insurance and the Host Guarantee.  Host Protection insurance acts like a liability policy by covering the costs of injury or property damage claims made against you by third parties, while the Host Guarantee can cover damages that guests inflict on your own property.

Both policies offer up to $1 million of protection per incident.  You're automatically enrolled in these programs whenever a guest makes a reservation at your property, but you're only eligible for coverage if you follow your city or state's laws regarding home-sharing.

Additionally, your existing renters or homeowners insurance can also protect your property from damages related to Airbnb or other home-sharing services.  However, coverage is often only allowed as long as you're only renting your property occasionally — a period that is often defined by each insurer differently.

What does Airbnb's insurance cover?

Airbnb's Host Protection liability insurance protects you if a guest or another individual makes a claim against you.  If a guest breaks someone's property or if they accidentally injure another person in your building's lobby or hallways, and the affected person makes a claim against you, then your Airbnb liability insurance would cover you.

Airbnb's liability insurance extends its protection anywhere associated with your property, such as your apartment building's lobby.  It also applies to automobiles and mobile homes if they are listed on Airbnb's website as accommodations.

Your Host Protection doesn't cover acts of assault and battery, mold or fungi, acts committed by intoxicated minors or adults, or sexual assault.  According to Airbnb's terms of use, you also will not qualify for coverage if your guest's destructive behavior is related to drywall made in or exported from China due to its purported defectiveness.  Airbnb's liability insurance doesn't cover any damage to your own property, either.  Fortunately, this is where Airbnb's Host Guarantee comes in.

When does AirBnB's insurance cover your property?

Airbnb's Host Guarantee covers damage that guests staying on your property cause to your own belongings for up to $1 million.  This agreement, unlike the Host Protection Insurance, isn't a form of insurance — although it has some similarities to regular personal property coverage.

You only have 30-days in total after the incident to complete the entire claim process.  First, you must try to come to a resolution with the responsible guest.  You have 14-days after your guest's check out to contact the guest and notify Airbnb if the guest refuses to compensate you for damages.  You must then provide documentation of the incident, including proof of ownership, as well as pictures and descriptions of the damage to Airbnb.  Failure to adhere to any part of this timeline could disqualify you from receiving any reimbursement.

If you make a successful claim, you may receive compensation equal to the actual cash value of your property, meaning the item's worth minus any deductions for physical depreciation.  Unfortunately, unlike your regular insurance, there's no way to upgrade to guaranteed replacement coverage.

You won't be protected by Airbnb's Host Guarantee if your property suffers damage from weather-related events or if your guests injure your pet.  Any costs from mold or mildew are also excluded from this type of insurance by Airbnb.  Your Host Guarantee also doesn't provide coverage to any special items you might own, such as jewelry, collectibles or artwork.

Does renters insurance insurance cover Airbnb?

Both your renters and homeowners insurance policy can cover some damages that are caused by guests to your property, including those participating in home-sharing programs like Airbnb.  Typically, a renters insurance or homeowners insurance policy will still insure your property as long as you only rent it out occasionally.

Sometimes, your renters insurance might say this means that you can't rent out your home for more than a certain number of days per year — usually 90.  In other cases, a renters policy might deny coverage if you make more than a couple thousand dollars annually from home-sharing.  Each insurer has its own definition of "occasional home-sharing," so it's best to talk to your provider if you plan to participate in Airbnb.

As with Airbnb's own insurance agreements, you could run into problems with your renters insurance if your lease doesn't allow you to participate in home-sharing and you have to make a claim.  If you fail to inform your insurer that you're hosting Airbnb guests or do so against your insurer's rules, your claim will probably be denied.

Is Airbnb insurance available everywhere?

Although Airbnb insurance is available for free to any host on the platform, states within the U.S. have their own laws regarding home-sharing providers that could determine whether you qualify for protection under both the Host Guarantee and Host Protection agreements.

To receive access to Airbnb's insurance services, you must cooperate with your local laws and landlord or condominium board regarding home-sharing services.  In some cities, like New York, this might mean complying with zoning laws, applying for commercial permits or paying extra taxes when you rent your property.  If you ignore these kinds of regulations, you may be disqualifying yourself from the benefits of Airbnb insurance.

For answers to other questions you may have regarding Short-Term Rental insurance, I suggest that you contact Christian Richter with Old Harbor Insurance at CR@oldharborins.com.  His cell phone number is (951) 297-9742.