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Airbnb host guarantee / homeowner's insurance

Discussion in 'Homeowners, Fire, Casualty' started by KrunchTime, May 23, 2020.

  1. KrunchTime

    KrunchTime Law Topic Starter New Member

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    I have been paying extra on my homeowner's insurance for coverage for commercial use because I have an in-law unit attached to my house that I rent out on Airbnb. I don't actually share any interior space with my guests. I was wondering if I could get away with just using Airbnb's 1 million dollar host guarantee instead. Unless I'm mistaken, it appears that NO is the answer! I searched for the word "fire" and it does not appear. Also, unless I'm reading it wrong, their guarantee apparently does not cover loss of use, for example if I had to move elsewhere for 2 years while my home is being rebuilt due to fire. If true, that alone would be a deal breaker.
    Host Guarantee
     
  2. adjusterjack

    adjusterjack Super Moderator

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    That's right. NO is the answer.

    For one thing the guarantee ONLY covers loss or damage caused by the Responsible Guest, subject to excluded losses listed further on.

    For another, that guarantee is designed for one thing, and one thing only, which is never to have to pay a nickel under it.

    In my career I have read thousands of insurance policies of all shapes, sizes and complexity and I have never seen anything as convoluted as that guarantee.

    With my experience and knowledge I MIGHT be able to follow the instruction and successfully file a claim but I will guaran-damn-tee that Joe Homeowner will not get it right.

    Keep paying the extra amount on your homeowners policy.

    :)
     
    shadowbunny likes this.
  3. KrunchTime

    KrunchTime Law Topic Starter New Member

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    So, even for the minimal amount of things that their 'guarantee' claims to cover, it's a Swiss cheese contract? That's the word of mouth in the forums. Don't count on Airbnb paying out on damages left behind by guests. It almost seems like Airbnb won't even have a debate about paying out a claim until you the host has exhausted going to court with the guest to collect, which by that time has already cost you an arm and a leg.

    On a side note, I wish there was a carrier out there who could make a quick adjustment to get a host on and off of a business-use rider. I'm only open for about 6 months of the year, so then every 6 months I have to switch carriers, my agent goes through a lot of work, etc.
     
  4. welkin

    welkin Active Member

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    There in is a problem for you relying on their guarantee. The guarantee would only cover that portion of your property that you rent out and only during the term of the stay. It would not replace your entire house if there was a fire.
     
  5. adjusterjack

    adjusterjack Super Moderator

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    You want to make the big bucks from airbnb you pay what the insurance companies want for insuring your risk.

    It's that simple.
     
  6. zddoodah

    zddoodah Well-Known Member

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    Get away with using it for what purpose?

    I'm not going to read that entire gigantic document, but I doubt it is an adequate substitute for liability and property insurance.
     
  7. flyingron

    flyingron Well-Known Member

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    If this home is financed, do you have an agreement to lease or are you just in violation of YOUR contract with the lender?
     
    army judge likes this.

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