AirBnB® is the only short term rental platform providing two specific coverages for their hosts in Canada: the Host Guarantee and the Host Protection. But how good are they? Are they enough to provide you peace of mind?
Understanding both AirBnB® coverages
What is the AirBnB® Host Guarantee?
It’s a coverage that AirBnB® launched in Canada around 2011. The host is protected up to $1,000,000 for property damages caused by the guests.
Any amount payable under the AirBnB® Host Guarantee will be reduced by the amount already paid to you by the guest (e.g. security deposit) or other source (e.g. your homeowners insurer) for the same loss. Indeed, the AirBnB® Host Guarantee is an excess of your homeowner insurance.
What is the AirBnB® Host Protection?
It is not available in all countries but in Canada, it has been launched in 2015. The host is protected up to $1,000,000 for per year per rented property.
The AirBnB® Host Protection covers you if your guests injure themselves on your rented property or cause bodily injury or property damage to third parties while renting your home.
Why AirBnB® coverages aren’t enough for you
5 examples where AirBnB® falls short to support you
1. AirBnB® won’t cover any standard homeowner losses like fire, water including pipes freezing, hail that occur when not occupied by a guest or are not related to the guest’s stay.
APRIL has you covered whether you’re living on premises or your guests are occupying your home.
2. You’ve agreed over the phone that your guest can leave at 5 pm instead of 11 am. At noon, your guest breaks your toilet and the water damages your personal belongings. AirBnB® only covers damages caused during the booking period shown in your listing; so it’s possible that the claim would be denied by AirBnB®.
APRIL covers you, your rented property and your civil liability 24/7/365 days a year, no time restriction.
3. Your mailman trips on your icy stairs or a friend goes for a swim in your pool and is injured. AirBnB® will not cover this as it’s unrelated to one of your guests.
APRIL is insuring you and your civil liability as property owner, regardless of who is injured.
4. Your guest leaves a candle burning, or otherwise trashes the place requiring extensive repairs and the home is not inhabitable while it is repaired. AirBnB® would only cover the loss of income for the host.
APRIL is insuring your rental value but also the additional living expenses while you can’t live in your home.
5. After a total loss caused by a guest, the reconstruction of the home is higher due to the in force bylaw. AirBnB® will not cover this as law enforcement regulating the construction is excluded.
APRIL has a specific endorsement on demand. We will pay the additional cost of demolition, construction or repair which is required to comply with any law regulating demolition, repair or construction of building.
Remember also that none of AirBnB® protections will apply if your guests book your home:
- On any another short-term rental platforms such as VRBO® or HomeAway®,
- Or other websites like Facebook or Kijiji;
- Or directly through you to avoid fees as it’s not their first time in your vacation rental.
Be aware of AirBnB limitations and exclusions
Claiming with AirBnB®: A potentially overwhelming and long process
Before relying on AirBnB® protections, consider the hurdles you might face in the event of a claim:
In addition, at APRIL – whether it’s your broker or claim adjuster, you wouldn’t be alone in the process. We will be here to support you and guide you through this.