I vividly remember when Airbnb proudly offered what they called industry-leading insurance for hosts, branded as AirCover. At the time, it felt like one of the most generous protections in the short-term rental industry:
- Host Damage Protection of up to $3M USD (well above most home insurance policies).
- Host Liability Insurance of up to $1M USD.
Damage protection covered almost anything caused by guests during their stay: furniture, art, valuables, pet damage, deep cleaning, and even lost income if you had to cancel confirmed bookings due to guest damage.
How the Claims Process Worked
The process was simple in theory, but strict in practice:
- You had to request reimbursement directly from the guest within 14 days of checkout.
- The request needed proof—photos, videos, or receipts.
- Only about 1 in 10 guests would actually admit fault and pay.
Most guests declined, often without consequence, and Airbnb has a reputation for siding with guests over hosts. Once declined, you could escalate to Airbnb.
In my experience, Airbnb usually approved claims quickly, especially for smaller amounts, though they sometimes adjusted payouts for depreciation. The hardest part was not the claims process itself, but asking the guest first—it’s a delicate interaction that can easily sour the relationship and even result in a nasty review.
(Pro tip: I may write another post about this, but my approach is to stay neutral, state the facts, and ask questions politely. Sometimes I even encourage guests to decline, so I can escalate to Airbnb directly.)
My Track Record With AirCover
After 5 years of hosting, I’d estimate 1 in 20 guests caused some form of damage—stained furniture, broken items, damaged walls, or excessive trash. Nearly every time, AirCover resolved the issue fairly and promptly.
The only major hiccup was a $5,000 pet damage claim I filed on behalf of a client. Airbnb initially offered just $1,500, which didn’t sit well with the property owner. After 3–4 escalations and two months of persistence, we finally received a fair settlement. Persistence pays.
What Changed Recently
Fast-forward to just three months ago: I filed a small claim for $20 (a hand towel and missing wine glass). The guest declined, so I escalated to Airbnb, expecting the usual quick resolution. Instead, here’s what they asked me to provide:
Hand towel:-
- Kindly share the original picture before the pre check-in and after check- out of the Hand towel.
- Could you please confirm how guests are responsible for the damage? Kindly explain what kind of damage occurred on the Hand towel. Instead of replace the towel you can consider for cleaning.
- if possible if it can be cleaned please share us the professional cleaning invoice and also share us the transaction receipt as payment proof
- If not possible for cleaning please and as the item is less than a year old share us the original purchase receipt of the Hand towel and payment proof as a transaction receipt.
Wine Glass:-
- Kindly share the original picture before the pre check-in and after check- out of the wine glass.
- Could you please confirm how guests are responsible for the damage? Kindly explain what kind of damage occurred on the wine glass as we couldn’t find any damage on the glass and how many glass has been damaged kindly brief us
- Share us the web links to a reputable retailer that shows the cost of the item, or if the item is no longer commercially available, the cost of a reasonably comparable item of like kind and quality.
- As the item is less than a year old, we require the original purchase receipt of the Wine Glass and payment proof as a transaction receipt.
- NOTE: All invoices should be on official company letterhead and include the following:
- ○ Date of service
- ○ Name of company
- ○ Phone number
- ○ Cost to repair or clean (include all services rendered) ➢ Invoices without contact information (Name, Phone number) are not acceptable.
All this—for a $20 claim. The administrative burden far outweighed the benefit.
Is This the Death of Airbnb Insurance?
It may be too soon to declare AirCover “dead,” but it’s clear the system has shifted. Airbnb seems to be tightening requirements, likely to curb abuse from dishonest hosts. Still, this means responsible hosts now face more hoops for even minor claims.
What does this mean for us?
- Keep receipts for nearly everything in your units.
- Ask cleaners to document check-outs with photos.
- Be prepared to absorb small damages as part of doing business.
In the long run, these extra costs may push nightly rates higher, which hurts everyone—hosts, guests, and even Airbnb.
Final Thoughts
AirCover used to feel like a safety net. Now, it feels more like a high bar to clear. Whether this is a necessary correction or the slow death of Airbnb’s insurance promise remains to be seen.
At CoHostsCircle, we know how to navigate these evolving challenges. We specialize in helping new hosts start their short-term rental journey with confidence. If you’re ready to begin, reach out to us today—we’ll get you set up in no time.