1. It’s not a Guarantee!! And it’s not Insurance.
Deep, deep down in their Terms & Conditions they specifically state that the Guarantee is not insurance read that here:
The Host Guarantee Program isn’t insurance and doesn’t replace your homeowners or renters insurance. Make sure you review and understand the terms of your insurance policy and what it covers and doesn’t cover. Not all insurance will cover damage or loss to property caused by a guest renting your space. Filing a host guarantee request doesn’t preclude a guest from financial responsibility for the damages claimed if Airbnb determines a guest was at fault.
2. Airbnb requires you to first work with the guest to recover damage funds
The guest has 72 hrs to respond. If they don’t only then can you can involve AirBnb. You still have to remember to stay on top of this and call them back Day 4 but before Day 14 to still stay within their resolution window.
3. Your regular Homeowners policy will likely NOT cover short term rentals.
They cover YOU as the primary occupant and “named insured”. Be sure to check with your carrier to see if you have a policy that would insure short term rental occupants. Additionally, single room listings are not recognize or covered by most homeowner insurance policies either.
4. AirBnb is the “merchant of record”
They control the flow of money. To recover any security deposit or damage money from a guest they would need to approve and release it. If they don’t feel the guest was at fault you don’t have any recourse.
5. Trying to recover security deposits or additional funds outside of their platform is a violation of their Terms of Service.
Can a security deposit be collected outside of the Airbnb website?
No. To make sure guest payments are protected and to ensure that hosts are properly compensated for reservation damages, we ask that all security deposits be handled through the Airbnb website. Payments outside of the Airbnb website, including security deposits, are a violation of our Terms of Service.
6. Most of their Customer Service and Trust & Safety teams are located overseas.
Which means you won’t be able to respond quickly to their email or call because you will most likely be sleeping.
7. Of the few short term rental insurance options out there, one specifically requires the guest to admit to damage
If the guest denies the damage or doesn’t respond to the claim — the case closes.
No one likes to pay for insurance, but you are sure glad you did when you need to use it. When vetting insurance companies for the type of home sharing you do (whole home or room rental), be sure to understand their claims process, coverage types and exclusions so you know what type of coverage you will have when unfortunate events arise.
About the Author: Property Protect
Property Protect was designed by Hosts, for Hosts. We understand the financial impact or logistics involved when you rent out your personal home or investment property. And, we also know how complicated it can be when things don’t go smoothly. We’ve had the unfortunate experience of damage from guests and we know how frustrating it can be when you find out you don’t have any protection. That’s why we’re here…to give you peace of mind and affordable coverage.
Our digital insurance platform offers short term rental policies in a straightforward and completely paperless way. In just a few clicks we make it easy to sign up, get insurance coverage and when that unfortunate time comes, we makes filing a claim a piece of cake.
Property Protect is reinventing insurance by adding a little design, data, and technology. To stay up to date with Property Protect, follow @MyPropertyProtect on Facebook.