In order to establish themselves as credible home-sharing platforms, Airbnb and Vrbo have established policies protecting hosts against a number of potential liabilities associated with handing over keys to a stranger. Both of these policies come at no additional cost to the host.
Airbnb’s Host Protection Insurance will pay out if guests cause damages amounting up to $1 million for:
– traveler accidental injury
– 3rd party accidental property damage (covering accidental damages to the property of a third party such as the guest, comunal area, or neighbor)
Vrbo’s policy offers similar liability insurance that covers up to $1 million of claims related to traveler accidental injury or 3rd party accidental property damage.
So standard run-of-the-mill damage is often covered, but things like cash and securities, collectibles and artwork, jewelry, damage caused by pets, and wear and tear are not always included. Damage to your property or belongings, loss of income and intentional damage or injury is not covered either.
While these policies are welcome, they are widely regarded as insufficient as standalone insurance policies. Airbnb has even repeatedly stated that their policy is, in fact, not an insurance policy. A vacation rental host that is looking to protect themselves and their property should really see the policies provided by Airbnb and Vrbo as a layer of protection that is supplemental to a dedicated vacation rental insurance policy.