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Airbnb Travel Insurance: Is it Better Than Standard Travel Policies?
Airbnb offers insurance coverage for both guests booking accommodations and hosts. But how does Airbnb’s Guest Travel Insurance actually work? How is it different from regular travel insurance you can buy from travel insurance providers? What’s included for free on Airbnb, what’s not, and who benefits the most from having insurance through Airbnb?
We'll break down how to get trip protection so you and your family members are covered in case of unexpected events, and how to contact the service for a premium refund.
In the second part of this article, we’ll also cover what this means for hosts—how to keep your guests happy and your property protected.
Understanding Airbnb Travel Insurance
What is Airbnb Travel Insurance?
Travel insurance, in the Airbnb context, is designed to shield hosts from unforeseen incidents during a guest's stay. Travel insurance encompasses a broader range of risks, including trip cancellation coverage, medical and travel emergencies, and even medical evacuation.
Who Is it For?
Airbnb introduced its insurance program for anyone using the platform to book accommodations. Instead of having to search for separate travel insurance policies after booking, travelers can simply add it during checkout on Airbnb.
This option may be especially appealing to customers booking longer trips or choosing properties with strict cancellation policies that would trigger non-refundable trip costs.
What's the Difference Between AirCover and Airbnb Travel Insurance
Airbnb developed comprehensive insurance policies. Their native coverage, called AirCover, is not the same as their travel insurance. Let's see the difference.
AirCover
AirCover is Airbnb’s free protection for both guests and hosts. For guests, it’s designed to minimize the risk of booking on the platform by offering support and refunds when things don’t go as planned. It's automatically included with every booking, so there’s no need to sign up separately or pay extra.
This is when Airbnb will refund guests through its AirCover policy:
Host Cancellations
If a host cancels the reservation before check-in, Airbnb will help the guest find a similar or better place to stay or offer a full refund.
This protects travelers from last-minute surprises and helps Airbnb maintain trust in the platform.
Unable to Check In
If a guest arrives and can’t access the property. For example:
- The key or code doesn’t work
- The host is unresponsive
- The unit isn’t ready.
Airbnb will step in to:
Help the guest book a new place fast or issue a refund if no suitable alternative is found.
This ensures guests aren’t left stranded.
Inaccurate Listings
If the place looks nothing like the booked listing. For example:
- Fewer bedrooms or bathrooms than advertised
- Major cleanliness or safety issues
- Missing amenities
The guest can contact Airbnb within 72 hours of check-in. If Airbnb confirms the issue, they’ll help rebook the guest at a comparable listing or provide a refund.
This protects guests from misleading hosts and low-quality listings.
Airbnb Travel Insurance
If you’re looking for travel insurance that covers more than just your Airbnb stay, like trip delays, lost baggage, or medical emergencies, you can add Airbnb’s travel insurance at checkout. The insurance provider on Airbnb is Generali US branch for US citizens (and offered by Airbnb Insurance Agency LLC.)
Airbnb guests in other parts of the world can purchase travel insurance policies in countries where Airbnb collaborates with an insurance company. Airbnb guests in Europe—UK residents and EU residents—are also eligible.
What Does Airbnb Travel Insurance Cover?
Add Airbnb travel insurance at the checkout if you want a full premium refund for:
- Trip Cancellation: If you cancel for a covered reason (like illness or flight cancellation), you can get up to 100% of your Airbnb booking cost back.
- Travel Delay: For delays of 24+ hours (like flight delays or a stolen passport), get up to $750 per person for meals, lodging, or parking.
- Medical Coverage: If you need care during your trip, get up to $50,000 per person for hospital, ambulance, medical treatment, prescriptions, even some pre-existing medical conditions.
- Lost or Damaged Baggage: If your luggage or items are lost, stolen, or damaged, get up to $1,000. (Electronics like laptops and phones not included.)
- Baggage Delay: If your bags are delayed 24+ hours, get up to $250 per person for clothes, toiletries, and essentials.
- Sporting Equipment Loss: If your gear is lost, stolen, or damaged, get up to $1,000 per person. (Wear and tear not covered.)
- Sporting Equipment Delay: If your gear is delayed 24+ hours, get up to $1,000 per person for rentals and other costs.
- Trip Interruption: If your trip is cut short or delayed for a covered reason, get up to 150% of your Airbnb booking cost back for unused nights and some transport.
- Emergency Transport: For medical evacuation or similar emergencies, get up to $100,000 per policy.
How to Contact Support?
The rest of the process works like most travel assistance services. If something goes wrong during the trip, guests can contact the insurance partner directly for support.
How Much Does Airbnb Travel Insurance Cost?
Airbnb insurance policies are priced similarly to third-party travel insurance plans, where you can buy coverage for yourself and a family member.
The cost typically depends on your total reservation amount, usually around 6% of the booking price.
What Are Alternatives to Airbnb Insurance Policy and How Are They Different?
Airbnb offers travel insurance as an add-on purchase, but it’s not your only option. Here's what to consider if you're thinking about skipping Airbnb's coverage and buying from a third-party insurer like Allianz, Seven Corners, TravelSafe, or Travel Guard by AIG.
If you choose the latter, you can find broader and more customized coverage. For example, you want Cancel For Any Reason upgrades, rental car, extended travel or annual plans.
You’re not tied to Airbnb’s default partner (Generali). You can compare prices, benefits, and customer reviews to choose what fits you best.
How Airbnb Insurance Policy Works for Hosts
Hosts benefit from AirCover for guests because AirCover gives guests peace of mind, knowing they’re protected from last-minute host cancellations, check-in issues, or inaccurate listings. As an Airbnb host, you want your guest experience to be top-notch.
You also want to protect yourself from liability and your property from damage and accidents that may occur on your property. Hosts need dedicated insurance that will protect their STR business.
Considerations for Airbnb Hosts
Airbnb automatically includes insurance for hosts to protect their interests. It's called AirCover for hosts. AirCover for Hosts is Airbnb’s free, built-in protection program that helps shield hosts from both property damage and liability claims during guest stays. It includes up to $3 million in damage protection, covering things like broken furniture, pet accidents, deep cleaning from smoking, and even theft by guests or their invitees.
On the liability side, AirCover includes up to $1 million in Host Liability Insurance, which protects you in case a guest is injured on your property or claims you caused damage to their personal belongings. For example, if a guest gets hurt on your property, this coverage can help cover their legal or medical expenses.
While AirCover offers solid protection, it's important to know it’s not a replacement for personal homeowners and STR insurance. It only applies to incidents that happen during Airbnb stays, and coverage is limited to what Airbnb defines as eligible.
Choosing the Right Third-Party Policy
Selecting the right travel insurance policy involves considering factors like the likelihood of cancellations, and the specific risks associated with your rental property. Consider factors like the total value of your bookings, and the unique risks tied to your property, such as location, guest turnover, or whether you allow pets or events.
Look for a policy that goes beyond basic coverage. The best STR insurance plans for hosts typically include property damage protection, liability insurance, loss of income coverage, and legal defense. Some policies also offer coverage for acts of vandalism, theft, or natural disasters.
Also, consider whether the insurer has experience with short-term rentals and understands the Airbnb or Vrbo hosting model.
Common Challenges
Hosts without proper insurance face numerous risks, from flight cancellations affecting guests’ arrivals to stolen travel documents. These issues can lead to disputes and financial losses.
Risk Assessment
Evaluating your specific scenario is key. For instance, if your property is in a location prone to natural disasters, ensuring that your policy covers such events is crucial.
Navigating Legalities
Understanding and complying with legal requirements, especially for hosts in the European Union, UK, or other specific regions, is vital. Insurance policies should be in line with local laws and Airbnb’s policies.
Protected Outside of Airbnb
Being insured not only provides financial protection on Airbnb, but also if you accept direct bookings or use other platforms as additional channels.
Best Practices for Hosts
Navigating the intricacies of Airbnb travel insurance requires more than just selecting the right policy. It involves a proactive approach to managing various aspects of your rental business.
Here are some best practices to ensure you're maximizing the benefits of your travel insurance:
Communicate Clearly with Guests
Let guests know what’s covered and what’s not (e.g., personal items, injuries). Include this info in your listing, welcome packet, or pre-arrival message.
Keep Records Organized
Save all policy documents, claims, and guest communication. Use tools like iGMS or a shared drive to stay organized in case you need to file a claim.
Know Your Policy
Understand your coverage limits, exclusions, and how to file a claim. For example, know the process if a guest needs emergency medical care.
Educate Guests
Tell guests to follow safety guidelines, report incidents right away, and cooperate if a claim is needed.
Review Coverage Regularly
Update your policy if you renovate, expand, or if local laws change. Don’t assume last year’s policy still fits.
Prep for Emergencies
Have a simple emergency plan in place. Share local emergency contacts and safety instructions in your guest manual.
Get Expert Advice
Not sure what coverage you need? Talk to an insurance advisor who understands short-term rentals.
Final Thoughts
Airbnb takes guest protection seriously. Some coverage is already included with every reservation, but you can also purchase traditional travel insurance through Airbnb. Whether you buy travel insurance at Airbnb checkout or go with an independent provider is completely up to you as a guest. Airbnb's option is just one extra click at checkout, but if you have the time, you can explore other providers for more customized coverage.
On the other side, understanding Airbnb travel insurance is crucial for every host and property manager. It protects your investment and boosts your reputation with guests. While sorting through policies and legal requirements can seem daunting, the right tools make it easier.
iGMS stands out as a valuable tool in this area. It streamlines managing travel insurance, from keeping track of policy details to communicating with guests. Embracing iGMS means not only managing your property efficiently but also ensuring your Airbnb business is secure and professional.
