Airbnb Insurance:
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You have the choice to purchase guest travel insurance for your Airbnb reservation either during checkout or after booking by accessing your confirmation email. The price of the insurance is determined by a percentage of your total trip cost and varies depending on your location. During the booking process, you’ll see the specific insurance rate for your trip, and if you decide to include it, the coverage details will be confirmed in your booking email.
Airbnb insurance policy highlights :
Here are the key highlights of Proper’s Airbnb insurance policy:
- Commercial Policy Design: Specifically crafted to replace homeowner or landlord policies, catering to the unique needs of Airbnb hosts.
- Special Cause of Loss: Offers coverage under either an all-risk or exclusions-based policy for both the building and its contents.
- Replacement Cost Valuation: Provides reimbursement at the full replacement cost value (new for old) for both the building and its contents.
- Commercial General Liability Insurance: Standard coverage of $1,000,000, with an option to upgrade to $2,000,000.
- No Sub-limits: No limitations on coverage for damages caused by guests, theft, or vandalism.
- Liquor Liability Coverage: Protects hosts against liability related to alcohol consumption on the property.
- Amenities Coverage: Extends liability protection to amenities such as pools, hot tubs, bicycles, exercise equipment, and small watercraft.
- Business Revenue Coverage: Offers actual loss sustained business revenue coverage without a time limit.
- Optional Enhancements: Additional coverage options include ordinance or law enhancement, squatter protection with legal fees and loss of income, mechanical, electrical, and pressure system breakdown, and bed bug and flea enhancement triggering lost business revenue.
The Importance of Liability Coverage in Airbnb Insurance for Hosts:
It’s crucial not to underestimate the importance of liability coverage when considering an Airbnb insurance policy for hosts. Liability is often the most significant exposure for Airbnb hosts, as there’s a considerable risk of bodily injury occurring on the property, leading to potential litigation. Proper’s Airbnb insurance policy recognizes this risk by providing $1,000,000 in commercial liability coverage for hosts.
However, they recommend hosts to consider upgrading to $2,000,000 per occurrence. This higher coverage level is advised because the value of a million dollars in liability coverage may not be as sufficient as it once was, especially considering the potential costs associated with bodily injury claims and legal proceedings.
Airbnb insurance travel‘s plans offer comprehensive coverage for various situations:
- Medical coverage: Emergency medical treatment during your trip is covered up to $50,000 per person, encompassing hospitalization, ambulance transportation, and doctor-ordered care.
- Baggage coverage: Loss, damage, or theft of luggage and personal items are covered up to $1,000, excluding high-value electronics such as cellphones and laptops.
- Trip cancellation: If you need to cancel your trip due to illness, flight delays, or other covered reasons, you can receive reimbursement for up to 100% of your Airbnb booking cost.
- Trip interruption: Should you need to shorten your trip, you can recoup prepaid rental costs for the unused portion of your stay and may also receive assistance with transportation expenses.
- Travel delay: In the event of a delay lasting 24 hours or more due to covered reasons like severe weather or mechanical issues, you can be compensated for incurred expenses such as hotels, meals, and airport parking, up to $750 per person.
Airbnb Insurance Estimated prices for two-night Airbnb stays in different locations:
| Airbnb Location | Total Before Insurance | Cost To Add Insurance |
| Hella, Iceland | $327 | $25 |
| Joshua Tree, California | $1,931 | $121 |
| Sacred Valley, Peru | $536 | $33 |
| Tulum, Mexico | $858 | $54 |
| Cape Coral, Florida | $1,505 | $94 |
Airbnb’s travel insurance policies come with specific limits for various types of coverage:
- Trip cancellation: Up to 100% of the Airbnb reservation cost.
- Travel delay: $750 per person for delays lasting 24 hours or more.
- Medical: Coverage up to $50,000 per person.
- Baggage: Coverage up to $1,000.
- Baggage delay: $250 per person for delays lasting 24 hours or more.
- Sporting equipment: Coverage up to $1,000 per person.
- Sporting equipment delay: $1,000 per person for delays lasting 24 hours or more.
- Trip interruption: Up to 150% of the Airbnb reservation cost.
- Emergency transportation/evacuation: Coverage up to $100,000 per policy.
For more detailed information on what’s covered and what’s not covered, you can visit Airbnb’s Travel Insurance Page.
Airbnb AirCover and Airbnb Travel Insurance serve distinct purposes and are included differently in bookings. AirCover safeguards guests in case their booking doesn’t align with the description, such as missing amenities or inaccuracies, and it’s automatically provided at no extra charge with every booking.
In contrast, Airbnb Travel Insurance is an optional add-on for guests, available at an additional cost. This insurance reimburses guests if they need to cancel or shorten their trip due to external factors like flight delays, illness, or adverse weather conditions.
| Feature | Airbnb Travel Insurance | Airbnb AirCover |
| Availability | Available for an additional cost | Included for free in every booking |
| Coverage | Reimburses for trip interruption, cancellation, or delay | Reimburses if the property doesn’t match the description |
| Provider | Provided by a third-party insurance company | Provided directly by Airbnb |
Exclusions of Airbnb insurance Cover: What’s Not Covered
Air Cover, while providing valuable protection for Airbnb guests, comes with certain exclusions, including:
- Intentional damage or injuries: Deliberate acts causing harm or damage are not covered by Air Cover.
- Regular wear and tear: Normal deterioration over time is not covered under Air Cover.
- Cleaning and trash removal fees: Costs associated with routine cleaning or disposal of trash are excluded from Air Cover.
- Damage related to acts of nature: Air Cover does not cover damage caused by natural disasters such as earthquakes, hurricanes, floods, or severe weather events.
- Mold damage: Damage resulting from Mold growth is typically not covered under Air Cover.
While many of these exclusions align with common home insurance policies, it’s important to note that damage caused by severe weather is a notable difference. Additionally, if a homeowner’s insurance company determines that the property is being used for commercial purposes (e.g., Airbnb rental), a claim may be denied even if the damage falls under a covered peril in the policy.
Is it helpful to invest in Airbnb insurance ?
Determining whether Airbnb’s travel insurance is a worthwhile investment depends on various factors related to your specific trip:
- Scope of Coverage: Airbnb’s insurance primarily covers issues directly related to your Airbnb rental, such as trip cancellations and interruptions. It doesn’t typically extend to other nonrefundable travel expenses like transportation or excursions.
- Existing Protections: Assess what coverage you may already have through credit cards or other sources. Some credit cards offer basic travel insurance that might suffice for Airbnb cancellations.
- Host Cancellation Policies: Understand the cancellation policies of your individual hosts. Some hosts have strict rules requiring early cancellation for refunds, while others offer more flexible options.
- Third-Party Plans: Consider comprehensive third-party travel insurance plans from reputable companies. Although they may be more expensive, they often provide coverage for all nonrefundable trip expenses, with higher policy limits for medical and evacuation expenses.
- Personal Circumstances: Evaluate factors such as the total trip cost, duration, distance from home, and your risk tolerance. For expensive dream vacations with multiple non-Airbnb expenses, third-party insurance might offer better coverage. However, for simpler getaways where the Airbnb cost is the primary expense, Airbnb’s insurance could be sufficient.
Ultimately, weighing these factors can help determine whether Airbnb’s travel insurance aligns with your specific needs and preferences for the trip at hand.
How to find Airbnb’s insurance ?
To ensure comprehensive coverage for your Airbnb property, it’s advisable to explore options beyond Airbnb’s insurance offerings. Some major insurers provide specialized insurance tailored for Airbnb hosts, commonly known as short-term rental insurance. This type of insurance can help bridge potential coverage gaps and protect your property adequately. Here are some insurers that offer short-term rental insurance:
Additionally, landlord insurance may also serve as insurance for Airbnb hosts, depending on the policy and provider. However, it’s crucial to verify whether the landlord insurance policy covers properties that are frequently left vacant, as this is a common scenario for Airbnb hosts.
To ensure you’re obtaining the right coverage for your Airbnb property, consider consulting with a licensed insurance agent. They can provide guidance tailored to your specific needs and help you select a policy that offers the appropriate coverage for your Airbnb hosting venture.