Airbnb host insurance that goes beyond AirCover
AirCover is a reimbursement program. You need insurance.
Airbnb's AirCover program sounds comprehensive until you read the exclusions. Velaris gives Airbnb hosts and property managers a real commercial insurance policy — one that covers your building, your liability, your lost revenue, and your guest damage without waiting for a platform to decide.
By Andrew Bate, Co-founderReviewed by Stuart BateUpdated
In short
Airbnb host insurance is a commercial policy that covers an Airbnb rental's building, contents, liability, and lost income, the things AirCover for Hosts does not. AirCover is a reimbursement program Airbnb administers for Airbnb bookings only; a host insurance policy is a regulated contract you own that applies on every booking channel. Velaris provides it to hosts and property managers as one portfolio program.
Where AirCover falls short
AirCover markets $3M in damage protection and $1M in liability coverage. Here's what it actually covers compared to a commercial program.
| Coverage area | AirCover | Velaris |
|---|---|---|
| Building and structural damage | Not covered — AirCover only covers contents and some fixtures | Full building replacement cost coverage |
| Business income / lost revenue | Not covered — no compensation for canceled bookings during repairs | Lost rental revenue and extra expenses during covered repairs |
| Liability from guest injuries | Host Liability Insurance covers some claims — but Airbnb controls the process | You control the claim, with $100K-$1M in liability limits |
| Guest damage over $3M | $3M cap, with significant exclusions and documentation requirements | No sub-limit on guest damage — covers intentional, pet, and smoke damage |
| Claims timeline | 14-day minimum, often 30-60 days, with Airbnb making the final call | 2-day claims turnaround on guest damage |
| Multi-platform coverage | Only covers Airbnb bookings — direct bookings and other platforms excluded | Covers every booking on every platform, including direct |
Your homeowners policy won't cover your Airbnb
This is the most expensive mistake Airbnb hosts make. A denied claim on a homeowners policy can cost you tens of thousands — and get your policy canceled.
- Homeowners policies exclude properties used for commercial rental activity
- Listing on Airbnb — even once — can void your homeowners coverage entirely
- Guest injuries are excluded under personal liability provisions
- Business personal property (furnishings bought for the rental) isn't covered
- Loss of rental income isn't a covered peril under homeowners forms
Liability exposure every Airbnb host should know about
Hosting strangers in your property creates real liability risk. These are the claims that can cost you six figures — and they happen more often than you think.
A guest trips on a loose step, slips in a wet bathroom, or falls from a deck. These are the most common liability claims in short-term rentals, and they can cost $50,000+ in medical and legal expenses.
Properties with pools, hot tubs, fire pits, or waterfront access carry elevated liability risk. A single drowning or burn incident can result in a six-figure claim.
If a guest argues that faulty wiring, broken locks, or carbon monoxide exposure caused their injury, you'll need legal defense — even if the claim is frivolous.
Properties that switch between personal use and Airbnb rental face coverage conflicts. Your homeowners policy covers you at home — but not your guests when you're away.
Airbnb liability insurance: what AirCover's $1M actually covers
Of the two halves of AirCover for Hosts, Host liability insurance is the one that is genuinely insurance: a policy Airbnb buys from third-party insurers that responds, up to $1 million, when a guest is injured during an Airbnb stay or a guest damages a neighbor's property. The $3 million Host damage protection is different — a reimbursement program Airbnb runs itself, with a 14-day claim window and exclusions for wear and tear, currency and natural disasters.
Three limits matter more than the dollar figures. The coverage applies only to stays booked on Airbnb. Airbnb, not you, is the policyholder, so Airbnb decides how a claim is handled. And because the policy isn't yours, it cannot produce a certificate of insurance in your name — which is what a city permit office, a lender or a homeowner is asking for when they ask about “Airbnb liability coverage”.
Airbnb liability coverage for property managers
If you manage homes for owners, AirCover's liability cover protects the host account, not the management company and not the homeowner's other exposures. It does nothing for the same guest injured after booking on Vrbo or your own site, and it cannot be endorsed to name the owner, the HOA or the city.
A Velaris program writes general liability from $100K to $1M per occurrence on every home in the portfolio, enrolls homeowners at onboarding, and issues certificates of insurance on demand. AirCover stays in place as a free backstop on Airbnb stays.
What to check before relying on AirCover for liability
- Does your city require a certificate of insurance with the STR permit? AirCover can't produce one.
- Do you list on Vrbo, Booking.com or a direct site? Those stays have no AirCover liability at all.
- Does your management agreement promise the owner liability coverage? It has to come from a policy you control.
- Do you host events, pools, hot tubs or watercraft? Confirm the exclusions before an incident, not after.
Frequently asked questions
Is AirCover real insurance?
Partly. AirCover for Hosts has two halves. Host liability insurance — the $1M part — is a genuine insurance policy that Airbnb buys from third-party insurers, but Airbnb is the policyholder, not you. Host damage protection — the $3M part — is a reimbursement program Airbnb administers itself, not a policy. In both cases Airbnb controls the claim, it applies only to stays booked on Airbnb, and Airbnb's own help center says it is not a substitute for personal insurance.
Does Airbnb provide liability insurance for hosts?
Yes: Host liability insurance within AirCover covers you for up to $1M if a guest is injured or a guest damages someone else's property during an Airbnb stay. It does not cover stays booked on Vrbo or your own website, it does not cover damage to your own home, and Airbnb — as the policyholder — decides how the claim is handled. Cities that require liability coverage with a short-term rental permit generally want a certificate of insurance in your name, which AirCover cannot provide.
Is $1M of Airbnb liability coverage enough?
For a single home with occasional guests, often. For a professionally managed portfolio, the problem isn't the number — it's that the coverage only exists on Airbnb bookings, sits on Airbnb's policy rather than yours, and cannot be evidenced to a city, lender or homeowner. A Velaris program writes liability from $100K to $1M per occurrence on every home, across every channel, with certificates of insurance you can issue the same day.
How long do I have to file an AirCover damage claim?
Fourteen days after the guest checks out, or before the next guest checks in, whichever comes first. Host damage protection also excludes normal wear and tear, lost currency, and natural disasters, and you have to be able to show the guest caused the damage. A damage waiver program removes the race against the next check-in: damage is documented at turnover and paid from program funds on your timeline.
Will my homeowners insurance cover my Airbnb rental?
Almost certainly not. Every major homeowners carrier excludes commercial rental activity. Some will cancel your entire policy if they discover you're listing on Airbnb. Even if you only rent occasionally, the commercial activity exclusion applies from the first booking.
What does Airbnb insurance from Velaris actually cover?
Velaris provides a commercial insurance program that covers property damage (building and contents), general liability ($100K-$1M), guest-caused damage (no sub-limit), business income loss, and specialty endorsements like bed bug remediation and squatter removal. It covers every booking — Airbnb, other platforms, and direct — under one program.
How does Velaris work with my Airbnb listings?
Velaris integrates with 80+ property management systems. When a booking comes in — from Airbnb or any other channel — your coverage is automatically active. Guest damage fees can be built into your nightly rate or charged separately. There's nothing to toggle on or off per reservation.
Can I use Velaris for properties listed on multiple platforms?
Yes. That's one of the biggest advantages over AirCover. Velaris covers your property regardless of where the booking originates — Airbnb, Vrbo, Booking.com, direct bookings, or any other channel. One program covers everything.
What if I only have one or two Airbnb properties?
Velaris works for single-property hosts and large portfolios alike. The coverage program is the same — you're not penalized for being small or paying a premium-per-property that only makes sense at scale. That said, property managers with portfolios of 5+ properties typically see the most operational value from PMS integration and automated coverage enrollment.
Related coverage
Works with your PMS
Ready to replace AirCover with real coverage?
Talk to us about a commercial program that covers your Airbnb properties — and every other channel you list on.
Get a Quote