Airbnb rentals, while profitable in most cases, don’t always go smoothly. What happens if something goes wrong?
Despite the guarantees offered by vacation rental platforms, many disputes arise from rentals between individuals. Particularly on the Airbnb platform, which is recording a record number of complaints despite the insurance offered by the American company. What cover does the owner have in the event of damage during an Airbnb or Booking rental? Here’s what you need to know about the platform’s coverage.
Airbnb offers coverage, albeit sketchy
As mentioned in a previous post, Airbnb offers two basic types of insurance to owners and tenants. The first is host insurance, which covers both of them, but only in the event of a lawsuit brought by a third party in connection with the rental, and up to a limit of 800,000 euros. The most obvious example is a complaint by a neighbor about a disturbance caused by the tenant during his stay. Unfortunately, this guest insurance only covers intentional, premeditated assault and battery.
The second insurance policy offered by Airbnb is the Host Guarantee. This sets the framework within which damage during an Airbnb rental can be covered by the platform. Unfortunately, this Host Guarantee does not cover property, people, common areas or pets.
In that case, are we really covered in case of damage during an Airbnb rental?
Airbnb coverage in the event of damage during a tenant’s stay
Water leaks, broken vases, pierced walls, alterations to common areas… there are many potential damages that can result from an Airbnb rental, whether unintentional or not. As mentioned above, the Host Guarantee can be activated in such cases. However, activating it is more of an impossibility than a miracle, and you’ll see why.
In fact, Airbnb offers to protect owners against damage to their property and its contents up to 800,000 euros. This is a staggering sum that no other vacation rental platform can afford. However, when you take a closer look at the clauses governing the activation of this Host Guarantee, things get more complicated. Your accommodation must be « eligible ». Airbnb has not defined what it means by « eligible ». However, according to explanations gleaned from a lawyer specializing in real estate law, it is absolutely necessary for the damaged property to be the absolute property of the owner, or for him to haveauthorization to sublet it.
So if, for example, you are yourself the tenant of the property you are subletting on Airbnb, you need tacit subletting authorization from your landlord. If this is the case, you don’t even need to contact Airbnb– the answer will be NO.
In addition, there is another point that easily attracts attention, again with regard to the clauses relating to the Host Guarantee. Airbnb specifies that Host Guarantee coverage can only be requested in the rare event that the damage caused by a tenant has not been resolved directly with him or her. In other words, in the event of a problem with your tenant, you’ll need to negotiate with him/her before he/she vacates the premises, so that he/she settles the damage caused. Only if the tenant fails to pay, and you have proof of this, should you contact Airbnb to take advantage of the coverage. This limits the usefulness of the Host Guarantee, which is in fact only a last resort and not systematic coverage.
Are we covered in case of damage during an Airbnb rental?
This is a question you might ask yourself if you put your apartment online on sites like Abritel/HomeAway or Booking. Based on the details outlined above, yes, you are covered in the event of damage during an Airbnb rental. However, this coverage is conditional. You must first be the owner of the property rented on the platform, or a tenant of the property with a sublease authorization.
But you also need to have tried every possible means of redress, and it’s only if you don’t succeed in asserting your rights that you need to contact Airbnb if you hope to benefit from its coverage. The Host Guarantee offered by the platform is useful, but not systematic. It is therefore advisable to choose your tenants carefully, and to take out adequate home insurance adapted to your Airbnb holiday rental activity.
All the more so since Airbnb implicitly specifies in the clauses of its guarantee that it in no way replaces home insurance. Clearly, this guarantee is designed to reassure rather than actually cover the owner and host.