Airbnb AirCover vs Insurance: What You Need to Know

Updated : Mar 17, 2025

When managing a short-term rental, ensuring the safety of your property, guests, and peace of mind is crucial. 

As an Airbnb host, you have several options for protecting your listing, but understanding the differences between Airbnb AirCover vs insurance is key to making an informed decision.

In this article, we’ll break down Airbnb AirCover vs insurance, comparing the two in a way that helps you navigate your options and choose an insurance provider that’s best for your rental business. 

What Is Airbnb AirCover?

Before we dive into the comparison, it’s important to understand what Airbnb AirCover is. 

Launched in 2022, Airbnb AirCover is a comprehensive protection program designed specifically for Airbnb hosts. It’s not just a traditional insurance policy but a liability coverage that Airbnb offers at no additional cost.

AirCover offers three main types of host protection:

1. Host Damage Protection: It is a comprehensive program that covers damages caused by guests during their stay. Host damage protection is up to $1 million, which protects things like broken furniture, damaged appliances, unexpected cleaning costs, or accidentally destroyed property.
2. Host Liability Insurance: AirCover provides liability protection up to $1 million if a guest gets injured on your property. Host liability insurance ensures that you aren’t financially burdened by any legal or medical claims resulting from accidents on your property.
3. Income Loss Protection: In cases where your listing is temporarily unavailable due to damages, AirCover compensates for lost income, ensuring that you’re not out-of-pocket while repairs are underway.

Traditional Insurance vs Airbnb AirCover

While AirCover offers several types of host protection, it’s not the same as a traditional insurance provider.

Let’s look at which of these is a comprehensive insurance policy:

1. Coverage Limits

Airbnb AirCover: Airbnb’s AirCover provides $1 million in coverage for property damage and liability claims. This is a decent amount for most hosts but may not be sufficient for high-end properties or those with specialized needs (like luxury amenities or unique structures).

Traditional Insurance: Standard homeowners or rental insurance policies can offer a wider range of coverage options and potentially higher coverage limits, depending on the policy. However, they may also come with exclusions for short-term rental operations. Some policies specifically exclude coverage for damages caused in your short-term rental, so it’s important to read the fine print as a property owner.

2. Ease of Use

Airbnb AirCover: The big selling point of AirCover is that it’s integrated directly into Airbnb’s platform. As a host, you don’t need to purchase separate personal insurance; it’s included automatically with your listing. Additionally, the claims process is streamlined with a 24-hour safety line, meaning that you can resolve issues quickly without having to go through a complicated process with insurance companies offering a liability insurance policy.

Traditional Insurance: Insurance claims typically involve a lot more paperwork and back-and-forth with agents. You’ll need to contact your insurer directly, provide evidence of damages or bodily injury, and deal with any potential issues related to exclusions or deductibles.

3. Exclusions and Limitations

Airbnb AirCover: While AirCover provides robust protection, it has some exclusions. For example, it doesn’t cover damages caused by natural disasters, or any liability claims outside of the rental period (e.g., if a guest visits the property after check-out and damages something). Additionally, it only covers damage done by guests; it won’t cover issues like ordinary wear and tear or pre-existing conditions.

Traditional Insurance: A typical insurance policy is much broader in its coverage but may still exclude certain types of damages. For example, flood insurance or earthquake insurance may require additional policies, and some traditional policies may have higher deductibles or limits on short-term rental coverage.

4. Cost

Airbnb AirCover: One of the most appealing aspects of AirCover is its free. As an Airbnb host, you don’t need to pay for extra coverage, making it an attractive option for those just getting started or managing multiple properties.

Traditional Insurance: On the other hand, comprehensive insurance coverage for hosts will come at an additional cost. You’ll need to pay for your premium, and if you’re renting out your property on a short-term basis, the cost of coverage can be higher due to the perceived risk.

5. Guest Behavior and Claims

Airbnb AirCover: AirCover is tailored explicitly to short-term rental properties, and Airbnb’s platform allows quick access to guest reviews, guest identity verification, reservation details, and damage reports. If something goes wrong, you can submit claims directly through the platform.

Traditional Insurance: With traditional insurance, guest behavior may be less of a claim factor. Insurers generally don’t consider the type of guest or booking length but instead focus on the cause of the damage. However, filing a claim due to guest-related damage could increase premiums for future coverage.

Which Option Should You Choose: Airbnb AirCover vs Insurance?

Deciding between AirCover and traditional insurance depends on your unique needs as a host.

Here are some factors to consider:

• Property Value: If you’re renting out a luxury property or one with specialized features (e.g., a vacation home with a pool, hot tub, or expensive furniture), you may want to invest in additional insurance coverage to ensure you’re fully protected.
• Risk Tolerance: AirCover is an excellent option for hosts who want essential protection with minimal hassle. It covers the most common scenarios with Host Liability Insurance and Host Damage Protection. But it doesn’t cover everything. If you’re comfortable with the coverage limits, AirCover is a good starting point.
• Short-Term vs Long-Term Rentals: Traditional insurance policies may be more suitable for long-term rental hosts. Short-term rental coverage is often more expensive and requires careful consideration. However, for Airbnb hosts, AirCover may suffice for the short term, especially if your listing is just getting started.

FAQs About Airbnb AirCover vs Insurance

1. Does Airbnb AirCover cover pet damages? 

Yes, Airbnb AirCover covers physical damage caused by pets, but it may have limitations on certain types of damage or specific situations. It’s important to check the details of the claim.

2. What does Airbnb AirCover not cover?

Airbnb Aircover does not cover loss of income, damage to personal belongings or personal property, damage incurred to the property that was intentionally caused by the guest, illegal activities that led to damage, normal wear and tear, and damages caused by direct bookings.

3. Do you need extra insurance if you’re on Airbnb?

AirCover is an excellent resource for most hosts, but depending on your property and needs, you may want to consider additional insurance, especially if you have a high-value property or face risks like natural disasters.

4. How do I file a claim through Airbnb AirCover?

To file a claim, simply visit your Airbnb dashboard, navigate to the “Resolution Center,” and follow the steps to report damage or other issues. You’ll need to provide documentation, such as photos, to support your claim.

Conclusion

Imagine you’re an Airbnb host with a property that has a beautiful leather couch, but during a guest’s stay, they accidentally spill wine all over it. The guest acknowledges the damage, and you submit a claim through Airbnb’s platform. Within a few days, you receive compensation for the damage, and you’re able to replace the couch without out-of-pocket expenses.

Now, if you had relied on traditional insurance for hosts, the process could have been more time-consuming. You might have needed to submit paperwork, wait for an assessor to evaluate the damage, and potentially pay a deductible. In addition, your premium may increase due to the claim.

Choosing between Airbnb AirCover and traditional insurance comes down to your unique situation. AirCover offers a convenient, free option with solid protections such as Host Liability Insurance and Host Damage Protection, for most hosts, but traditional insurance may be necessary if you need higher or comprehensive coverage. 

By understanding both options, you can make an informed decision and feel confident that your short-term rental is adequately protected.