Warning! AirBnB HLI / AirCover does not pay out liability claims!

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Warning! AirBnB HLI / AirCover does not pay out liability claims!

Ronit Lodd
Member since 2024 · 9 posts · 4 votes

Had a guest who stayed at one of my properties, and upon checkout left it completely trashed. He brought 30+ people and kept getting frustrated when there weren't enough supplies (which was meant only for 10 per the # of people he mentioned he was bringing). Despite that, we still sent over everything.

Fast forward, he left a 1 star review, and is pursuing a liability claim of a slip and fall at the property (which was never reported). Generali, which is the company AirBnB uses, reached out and is requiring us to notify our insurance.

Turns out, AirBnB Host Liability Insurance / AirCover is a SECONDARY INSURANCE for hosts with 6+ properties. This means that you are fully responsible and the $1M top-to-bottom coverage does not apply until after your insurance pays out the claim.

As hosts, there is absolutely nothing we can do. Slowly AirBnB is removing every little bit of benefit they provide. The 18% fee they take unfortunately does not provide any sort of top-to-bottom insurance as of 03/01/2025. If a claim is filed against you, you will have to notify your insurance and suffer the premium hikes.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6mo

That's a bad way to find this out.

I think Airbnb insurance has always been secondary to you primary STR insurance and I would never count on it.

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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    6mo

    Well, that sucks!

    2Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6mo

    That's a bad way to find this out.

    I think Airbnb insurance has always been secondary to you primary STR insurance and I would never count on it.

    4Reply
    • Trent Reeve
      Atlanta · Member since 2022 · 711 posts · 642 votes
      6mo
      Quote from @John Underwood:

      That's a bad way to find this out.

      I think Airbnb insurance has always been secondary to you primary STR insurance and I would never count on it.


      yeah, i dont know of anyone that counted on Airbnb for liability. thats always why you need homeowners with STR provision. I have a place in a large townhome community in PCB and many rent with just regular homeowners because they say the STR insurance is too expensive. It doesnt matter how many times I tell them that if something happens, insurance will likely deny the claim

      2Reply
    • Owen RosenBusiness Member
      Professional · Clinton Township, MI · Member since 2015 · 680 posts · 259 votes
      6mo
      Quote from @Trent Reeve:
      Quote from @John Underwood:

      That's a bad way to find this out.

      I think Airbnb insurance has always been secondary to you primary STR insurance and I would never count on it.


      yeah, i dont know of anyone that counted on Airbnb for liability. thats always why you need homeowners with STR provision. I have a place in a large townhome community in PCB and many rent with just regular homeowners because they say the STR insurance is too expensive. It doesnt matter how many times I tell them that if something happens, insurance will likely deny the claim


      Homeowners with STR provision is only viable if the property is owner occupied with occasional STR usage. Not for a true non-owner occupied investment property.

      Royal Oath Insurance Group4.9203 Reviews
      WebsiteView Page
      0Reply
    • Trent Reeve
      Atlanta · Member since 2022 · 711 posts · 642 votes
      6mo
      Quote from @Owen Rosen:
      Quote from @Trent Reeve:
      Quote from @John Underwood:

      That's a bad way to find this out.

      I think Airbnb insurance has always been secondary to you primary STR insurance and I would never count on it.


      yeah, i dont know of anyone that counted on Airbnb for liability. thats always why you need homeowners with STR provision. I have a place in a large townhome community in PCB and many rent with just regular homeowners because they say the STR insurance is too expensive. It doesnt matter how many times I tell them that if something happens, insurance will likely deny the claim


      Homeowners with STR provision is only viable if the property is owner occupied with occasional STR usage. Not for a true non-owner occupied investment property.


       well, you know what I mean. verbiage may be different but insurance coverage with the property intended for short term rentals.

      0Reply
  • Sunil Ghosal
    Member since 2023 · 39 posts · 13 votes
    6mo
    Quote from @Ronit Lodd:

    Had a guest who stayed at one of my properties, and upon checkout left it completely trashed. He brought 30+ people and kept getting frustrated when there weren't enough supplies (which was meant only for 10 per the # of people he mentioned he was bringing). Despite that, we still sent over everything.

    Fast forward, he left a 1 star review, and is pursuing a liability claim of a slip and fall at the property (which was never reported). Generali, which is the company AirBnB uses, reached out and is requiring us to notify our insurance.

    Turns out, AirBnB Host Liability Insurance / AirCover is a SECONDARY INSURANCE for hosts with 6+ properties. This means that you are fully responsible and the $1M top-to-bottom coverage does not apply until after your insurance pays out the claim.

    As hosts, there is absolutely nothing we can do. Slowly AirBnB is removing every little bit of benefit they provide. The 18% fee they take unfortunately does not provide any sort of top-to-bottom insurance as of 03/01/2025. If a claim is filed against you, you will have to notify your insurance and suffer the premium hikes.

    Wow that is absolutely terrible! Good to know. We have had Airbnb AirCover handle a claim for a slip and fall on a staircase near our hot tub deck. They covered everything upfront.
    0Reply
  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    6mo

    This is a painful one, but you’re 100% right—and a lot of hosts don’t realize this until it’s too late.

    AirCover is marketed like primary protection, but in reality it often acts as excess/secondary coverage, especially at scale. That means your personal or commercial policy is first in line, and that’s what takes the hit (claims + premium increases). The biggest mistake I see is investors assuming Airbnb is “covering them,” when really they’re just sitting on top of your policy.

    For anyone doing short-term rentals, you need to structure this correctly: a true STR-friendly policy (not standard landlord), proper liability limits (ideally $1M+), and in many cases an umbrella on top. Also worth tightening guest screening and occupancy controls—30+ people is where risk goes through the roof fast.

    Appreciate you sharing this—this is exactly the kind of real-world lesson people need before scaling STRs.

    Rod Hanks Insurance4.9155 Reviews
    WebsiteView Page
    3Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    6mo

    Yes that is correct.  Did they ask for proof of denial of claim from insurance?  Likely you do not have coverage for this from primary but you can file a claim and use the denial letter to show Airbnb? 

    They have usually paid us out but it is for lower claims.  I have heard that on larger claims the rules are different.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 680 posts · 259 votes
    6mo

    I'm clarifying because the difference matters. Both exist.  Having one or the other might void the insurance if not classified correctly.

    Royal Oath Insurance Group4.9203 Reviews
    WebsiteView Page
    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6mo

    Never, EVER assume that an OTA's insurance will help you out. That's just a marketing gimmick to make you feel all warm and fuzzy.  They know most of the time nothing is going to happen, and if it does, oh well.  You are one homeowner in a sea of millions.  

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
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    1Reply
  • Michael Koeplin
    Saint Paul, MN · Member since 2015 · 56 posts · 33 votes
    4mo

    This is one of the most misunderstood areas in STR insurance.

    A lot of hosts hear “$1M AirCover” and assume that means Airbnb is acting like a primary commercial liability carrier. In reality, coverage structure, exclusions, and claim handling can become much more complicated depending on:

    • ownership structure
    • number of properties
    • whether the underlying policy permits STR activity
    • occupancy/event exposure
    • whether the claim falls within platform terms

    The bigger issue is that many owners never verify whether their own policy is actually written for short-term rental use in the first place. A standard landlord or homeowners policy may not respond the way people expect once the property is being operated commercially as an STR.

    I also think hosts underestimate how quickly liability exposure changes when occupancy scales:

    • hot tubs
    • pools
    • decks/stairs
    • large gatherings
    • alcohol
    • third-party bookings

    Those risks look very different from traditional long-term rental underwriting.

    The operators who tend to avoid major surprises are usually the ones treating insurance as part of active risk management rather than assuming the platform itself is the protection layer.

    Appreciate you sharing the real-world example.

    Michael Koeplin

    0Reply
  • Michael Greenwaldt
    Member since 2026 · 2 posts · 0 votes
    4mo

    Great point about documentation — keeping records of every incident is key for disputes, and platforms often side with hosts who have a paper trail. It also helps to cross-reference new inquiries against other hosts’ experiences.

    I actually built a private community for STR hosts called HostPro Community that has a guest blacklist board where hosts warn each other about problem guests — you can see if a name or profile has been flagged before accepting a booking. The first 50 hosts get lifetime free access as founding members — might be useful if you're dealing with this: https://hostprocommunity.launchyard.app/founding-member

    0Reply
  • Tyler Divin
    Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
    4mo

    @Andrew Steffens idea is spot on.  File the claim with your property insurance carrier, get a denial letter, submit that to Airbnb.

    The other thing you mentioned is it seems like you knew there were 30 people there when they were requesting more supplies.  As soon as you found that out you should have taken immediate action to remove them from the property, not supplied them with what they were requesting.

    2Reply
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