Can Hosts Procure Insurance Through Airbnb?
Hosts generally receive two distinct protections from Airbnb at no additional cost. These are the platforms Host Guarantee Program, and the other is the Host Protection Insurance.
The Host Guarantee Program isn’t technically insurance but may offer a guarantee against guest-caused damage to the host’s property. Protection for the covered property is normally limited to $1 million.
Because this is a guarantee and not actual insurance, it shouldn’t be construed as a replacement for actual insurance. For instance, the guarantee program often excludes valuable items (e.g. antiques, artwork, collectibles), certain causes of damage (e.g. pet damage, routine wear), and certain areas (e.g. common areas not noted in a listing). Insurance might provide more robust protection for the space and items that a host owns.
The Home Protection Insurance is actual insurance against damage caused by guests and third parties, although this insurance might not be as robust as a host would like. The insurance is normally limited to only $1 million in coverage, which can quickly be exhausted in the event of a multi-person injury claim or fatal accident. Additionally, the insurance usually doesn’t provide coverage for lost income if a property is rendered unusable.
Should Airbnb Hosts Purchase Their Own Insurance Policy?
Many hosts want more protection than what Airbnb provides. If additional coverages or higher limits are desired, purchasing Airbnb host insurance through an independent insurance agent likely makes sense.
An independent agent can show hosts what coverages are available, and what situations specific coverages might include within their provisions. An independent agent can also compare policy options from different insurance companies, making sure that hosts get the protections they need at a competitive price.
Importantly, purchasing separate insurance generally doesn’t jeopardize Airbnb’s two included programs. In most situations, both the Host Guarantee Program and the Home Protection Insurance can remain in place even if additional insurance is acquired.