AirCover is a valuable tool for Airbnb hosts, but the details can make or break a claim.
To navigate the system successfully, hosts need to understand the fine print that could lead to claim denials or reductions.
These are the less obvious details that you need to know to protect your investments and avoid claims being denied or reduced:
Host Responsibilities Under Airbnb AirCover
To qualify for reimbursement under Airbnb AirCover, hosts must meet strict criteria:
- Host Responsibility:
- You must first attempt to resolve the issue with the guest via the Airbnb Resolution Center.
- Hosts must comply with all Airbnb terms, policies, and standards to qualify for reimbursement.
- The 14-Day Rule:
- You must initiate the claim within 14 days of the guest’s checkout or before the next guest checks in, whichever comes first.
- This is the initial deadline to notify Airbnb of the damage and submit a preliminary claim.
- Eligible Property:
- Coverage is limited to properties listed on Airbnb and booked by guests under Airbnb’s Terms.
- Eligible Losses:
- Covers only direct physical loss or damage caused by guests, pets, or invitees during a stay.
- Cleaning fees are only reimbursed beyond the cleaning fee charged to the guest.
- Depreciated value applies for damaged property (not the full replacement value).
Understanding Eligible and Ineligible Losses
Airbnb AirCover has clear exclusions that every host should be aware of:
- Ineligible Losses:
- Damage occurring after the booking period or caused by unauthorized invitees.
- Wear and tear, deterioration, or pre-existing damage
- Losses due to acts of nature (earthquakes, hurricanes, etc.)
- Losses from mold, mildew, fungus, or viruses
- Losses related to utility failures (electricity, water, gas)
- Loss of personal time, inconvenience, or "emotional distress"
- Ineligible Property:
- Cash, precious metals, and securities.
- Animals or pets owned by the host.
- Fine art and valuables that can’t be replaced (ex: rare antiques).
- Land, crops, and landscaping.
- Weapons, security cameras, or recording devices (unless properly disclosed).
- Vehicles and watercraft are excluded unless stationary and explicitly listed as accommodations (ex: houseboats).
Documentation Requirements for AirCover Claims
Proper documentation is critical to get your claim approved:
- Mandatory Documentation:
- Incident report from a professional repair company with official letterhead.
- Photos, receipts, repair estimates, and proof of purchase for damaged items.
- Proof of Ownership:
- Hosts must provide clear evidence they own or are legally responsible for the damaged property.
- Inspections:
- Airbnb may require property inspections, and hosts are expected to cooperate.
- Police Reports:
- Mandatory for claims involving theft, criminal acts, or violations of law.
Depreciation and Payment Limits
- Depreciated Value:
- Reimbursements are calculated based on the depreciated value of items, not their original price or replacement cost.
- Maximum Payout:
- The $3 million limit applies to damages caused by a single booking.
- The payout amount may be reduced if the host recovers funds from
- Guests (via Resolution Center).
- Insurance policies.
- Security deposits or other sources.
Procedural Fine Print
- The 30-day Rule:
- After initiating the claim, you have 30 days to provide all required documentation (e.g., photos, receipts, repair estimates).
- Failure to submit complete supporting materials within this time frame will result in claim denial.
- Approval Process:
- Claims are not guaranteed approval; Airbnb reserves the right to deny claims based on incomplete documentation or policy non-compliance.
- Appeals:
- Rejected claims may be appealed, but additional documentation or evidence will likely be required.
Airbnb’s Limitations and Rights
- AirCover is Not Insurance:
- Host Damage Protection is a contractual guarantee, not an insurance policy, and does not replace homeowners' or rental insurance.
- Airbnb’s Discretion:
- Airbnb reserves the right to investigate and deny claims at its sole discretion.
- Airbnb can modify or terminate the Host Damage Protection Terms with 30 days’ notice.
- Arbitration Clause:
- Disputes are resolved via binding arbitration in the U.S., with no class actions or jury trials allowed.
Geographic Exceptions
Coverage varies based on location:
- Hosts in Australia and Japan are subject to separate policies.
- Host Damage Protection does not apply to properties in China or certain categories like hotels.
Host Obligations After Damage
- Protect the Property:
- Hosts must take steps to prevent further damage to the affected property.
- Assignment of Rights:
- Once the host accepts a payout from Airbnb, they essentially “sign over” the right to pursue the same damages.
- This means Airbnb can pursue reimbursement from the responsible guest or other third parties (e.g., a guest’s insurance company or invitees).
- This means the host can't “double-dip” (you can’t get reimbursed by Airbnb and still try to collect separately from the guest or other responsible parties)
- Confidentiality:
- Payout details may be required to remain confidential.
Exclusions for Specific Items or Circumstances
AirCover has additional limitations in certain scenarios:
- Cleaning Fees:
- Airbnb only covers cleaning costs exceeding the guest’s cleaning fee.
- Lost Revenue:
- Booking income is only reimbursed for the period when the property was uninhabitable due to eligible damage.
Modifications to the Terms
- Policy Changes:
- Airbnb can modify the terms at any time, and the latest version applies to all claims. (This article was last updated using the Host Damage Protection terms on 12/20/24)
- Termination:
- Airbnb may terminate the program in specific jurisdictions if required by local laws or regulations.
Summary: How to Avoid Issues with the Fine Print
- Thoroughly review all conditions, exclusions, and limitations.
- Keep clear, timestamped documentation of your property’s condition and inventory
- Maintain accurate records of item ownership, receipts, and repair estimates
- Submit claims promptly and follow Airbnb’s procedural requirements to the letter
- Be prepared for delays and persistence when appealing denied claims
