If you're buying an Airbnb rental, the fastest way to destroy a good investment is assuming "AirCover has me covered." Liability risk is the one risk that can jump from annoying to life-changing in a single incident. And it's one of the most misunderstood parts of hosting a short-term rental.
This guide breaks down how Airbnb's liability coverage actually works, where the real gaps are, and how to build an insurance stack for your STR that can survive a bad day.
Does Airbnb Cover Liability If a Guest Gets Hurt?
Most people searching this phrase are trying to answer one of these questions:
1. Answer a fear question: "If a guest gets hurt, will Airbnb pay or will I get sued personally?"
2. Validate a decision: "Can I skip real insurance and rely on AirCover?"
3. Build a checklist: "What coverage do I need to close, get permitted, and sleep at night?"
4. Handle an incident: "A guest got injured. What do I do right now?"
Success for you looks like this:
• You can explain the difference between liability and property damage in one sentence
• You know the exact trigger for Airbnb's host liability program (and the big ways it doesn't trigger)
• You can name the top exclusions that bite hosts (assault, disease, mold, privacy)
• You can build a coverage stack that matches how you operate (owner-occupied, dedicated rental, multi-property portfolio, LLC ownership)
• You have a step-by-step playbook for what to do if someone gets hurt
That's what we'll cover.
What Is Airbnb Liability Insurance and Why It Matters
Let's start at the foundation.
What "Liability" Means
Liability is legal responsibility. If someone claims your property (or your decisions) caused them harm, they can demand money.
Liability claims usually involve:
• Bodily injury: A person is hurt (slip and fall, cut, burn, drowning, CO exposure)
• Property damage: Someone else's stuff is damaged (neighbor's unit flooded, guest's laptop ruined)
• Defense costs: Even if you did nothing wrong, you can still need a lawyer
What a Liability Insurance Policy Actually Pays
A typical liability policy pays three buckets of money:
① Claim investigation (figuring out what happened)
② Legal defense (lawyers, court costs)
③ Settlement or judgment (what you owe if you're found legally responsible)
Airbnb's Host Liability Insurance program summary explicitly says it covers a host's legal liability for bodily injury or property damage from an accident during an Airbnb Stay, and includes investigation and defense costs if the program applies.
Why "I'll Just Form an LLC" Is Not the Solution
An LLC can help separate assets, but it doesn't:
• Prevent someone from suing you
• Guarantee you'll win
• Replace insurance
Even with an LLC, you still need the right policy with the correct named insured (you, your LLC, or both). We have a detailed guide on STRs and LLC operations if you're considering that route. For investors deciding whether to start with personal or LLC ownership, our ownership structure comparison guide breaks down the liability protection and operational trade-offs.
Liability vs. Property Damage: What's the Difference?
A lot of hosts mix these together. Don't.
Airbnb Host Liability Insurance
Airbnb Host Damage Protection
This helps with damage to your place or belongings caused by a guest.
If you mix these up, you'll buy the wrong coverage and file the wrong claim.
How Much Liability Coverage Does Airbnb Provide?
Airbnb's host liability insurance article (Help Center) describes:
• $1 million in coverage for hosts if you're found legally responsible for a guest being hurt or their belongings being damaged or stolen during a stay, including co-hosts and cleaners
• Coverage extends to common areas (like building lobbies) and nearby properties in some situations
• Automatically included when you host a stay booked on Airbnb (no opt-in required)
Now here's the nuance most articles miss:
The Limit Is "Per Airbnb Stay," Not "Per Year"
Airbnb's Host Liability Insurance Program Summary (last updated December 1, 2025) says:
$1,000,000 USD is the total limit available per Airbnb Stay.
That's a different structure than many commercial policies (which use per-occurrence and aggregate limits). If you run high-severity risk (pool, oceanfront, tall decks, remote cabins), that "per stay" number matters.
Coverage Only Applies During an "Airbnb Stay" and Only for Airbnb-Booked Stays
The program summary says the incident must occur during the Airbnb Stay and the stay must be arranged using Airbnb's platform. It also defines an Airbnb Stay as check-in to checkout, and says cancelled stays and no-shows are not entitled to coverage.
This creates a simple mental rule:
Critical insight: If it wasn't booked on Airbnb, or it didn't happen between check-in and checkout, assume AirCover liability might not apply.
Portfolio Hosts: A Key Rule Change Effective March 1, 2025
This is a big deal for serious operators.
Airbnb's program summary states:
Effective March 1, 2025, if a host has 6 or more active Airbnb listings at the time of loss, the HLI program may require contribution from other applicable insurance or apply as excess coverage, depending on the other policy language. Failure to disclose other applicable insurance may impact coverage.
Translation in normal language:
If you're scaling, Airbnb is telling you directly: "How this coordinates depends on your other insurance, and we might not sit in first position."
Coverage Varies by Jurisdiction
Airbnb explicitly notes different coverage limits and terms may apply depending on jurisdiction, and describes different arrangements/underwriters in the UK and EEA.
If you're outside the US, don't assume the US summary applies exactly.
The Program Term Is Not "Forever"
The program summary says the current term is effective to at least June 30, 2026.
That's not a promise of lifetime coverage. It's a reminder that this is a program that can be updated.
Who Is Covered Under Airbnb Host Liability?
This matters when you work with co-hosts, cleaners, and HOA rules.
From Airbnb's host liability help article: co-hosts and cleaners are included.
From the program summary: the host's landlord or HOA (or similar entity) is also an insured, but only with respect to liability arising out of ownership, maintenance, or use of the accommodation and related common areas during an Airbnb Stay, with carve-outs (like structural alterations and new construction).
Practical takeaway:
If your condo HOA wants proof of insurance, Airbnb can sometimes satisfy part of the requirement, but you must check what your city or HOA specifically requires (often "per occurrence," "primary," or "named insured" language). Understanding local STR regulations is critical for compliance and proper insurance structuring.
What Does Airbnb Host Liability Cover?
Airbnb's host liability help article says it covers you if you're found legally responsible for:
• Bodily injury to a guest (or others)
• Damage to or theft of guest (or others) property
• Certain damage caused by a guest to common areas and nearby properties
The program summary explains it covers legal liability for bodily injury or property damage due to an accident during a guest's Airbnb Stay, and includes investigation and defense costs if it applies.
What Airbnb Liability Insurance Doesn't Cover
Every liability policy has exclusions. Airbnb's program summary also says its list is not exhaustive.
Here are the exclusions that most often surprise hosts, with a "why you should care" explanation:
1. Assault and Battery, and Sexual Assault
The program summary excludes assault and battery and excludes sexual assault (sexual abuse or molestation).
Why this matters:
Guest-on-guest fights, parties, and certain criminal allegations can be catastrophic claims. If your property attracts high-risk behavior (party town, large groups, event weekends), you should talk to a specialist about coverage that explicitly addresses these exposures.
2. Communicable Disease
The program summary excludes bodily injury or property damage arising out of actual or alleged transmission of a communicable disease.
Why this matters:
This is a major reason many STR insurance products highlight disease exclusions and cleaning protocol language. AirCover is not a safety blanket here.
3. Fungi or Bacteria (Mold)
The program summary excludes bodily injury or property damage arising from fungi or bacteria on or within a building, including contents (with a narrow carve-out for consumption products).
Why this matters:
Mold claims can become "slow burn" lawsuits because they involve health allegations, disputed causation, and big remediation costs.
4. Privacy and Undisclosed Cameras
The program summary excludes damages related to recording/material distribution by a camera that is not previously disclosed in the listing (including location), or is placed in/observing interior areas, or placed in certain exterior areas with higher expectation of privacy, or concealed.
Why this matters:
If you use exterior cameras, noise monitors, smart locks, or any monitoring device, disclosure and placement are not optional. It's liability management.
5. Pollution, with a Carve-Out for CO and Hostile Fire
The program summary excludes pollution-related bodily injury/property damage, but includes an exception for bodily injury inside an accommodation caused by smoke/fumes/vapor/soot/carbon monoxide, and an exception for hostile fire.
Why this matters:
Carbon monoxide is one of the highest severity risks in lodging. You want alarms, documentation, and maintenance logs even if there is some insurance carve-out.
6. Autos, Watercraft, and Mobile Equipment (Mostly)
The program summary excludes aircraft/auto/mobile equipment and excludes watercraft, with limited exceptions when the vehicle is the listed accommodation and parked, and some contingent auto coverage language.
Why this matters:
If your "cool factor" is ATVs, boats, or offering rides, assume you need separate insurance.
7. Personal and Advertising Injury
The program summary excludes personal and advertising injury types like false arrest, malicious prosecution, wrongful eviction, slander/libel, and privacy violations.
Why this matters:
This is one reason many commercial policies talk about "personal injury" coverage, and why security deposit disputes and accusations can get weird fast.
8. Punitive Damages (Mostly)
The program summary excludes punitive or exemplary damages, fines, or penalties, except where insurable by law.
Why this matters:
You can "win" coverage for compensatory damages and still be exposed to non-insurable penalties depending on jurisdiction and claim.
AirCover vs. Your Own Insurance: What Pays for What
Here's the high-level stack most hosts should understand.
| Problem | AirCover Host Liability | AirCover Host Damage Protection | Your Own STR Insurance |
|---|---|---|---|
| Guest slips, breaks ankle, sues | Possible (liability claim) | No | Yes, if you have the right liability coverage |
| Guest's laptop stolen, host alleged responsible | Possible | No | Maybe, depends on policy |
| Guest breaks your TV | No | Possible, but not insurance and has strict requirements | Yes, if policy includes guest damage and contents |
| Neighbor's unit floods from your unit | Possible (third-party property damage) | No | Yes, depending on liability/property form |
| Mold complaint | Excluded | Often excluded too (and remediation is tricky) | Varies, often limited or excluded |
This table is not a promise of coverage. It's a "what bucket does this even belong to?" map.
Can You Use AirCover Instead of Real Insurance?
Why this is true, from first principles:
• AirCover is tied to Airbnb bookings and Airbnb's definitions (Airbnb Stay, covered incidents)
• Your lender, your city, and your HOA don't care about vibes. They care about proof of insurance that matches their rules
• Your own policy covers more than "guest got hurt." It can cover fire, storms, liability beyond Airbnb, income loss, and more
If you're underwriting a deal with Chalet's Airbnb Calculator, treat AirCover as a layer, not the foundation. Factor real insurance costs into your ROI and DSCR calculations from day one.
What to Do If Someone Gets Injured at Your Airbnb
You want a playbook. Here it is.
Step 1: Stop the Bleeding (Literally and Financially)
→ Call emergency services if needed
→ Remove the hazard if safe (turn off water, block broken step, shut down hot tub)
→ Don't argue. Don't admit fault on the spot
Step 2: Document Like You're Building a Court Case
→ Photos and video of the scene, the hazard, signage, lighting, weather
→ Save smart lock logs, camera footage (if legal and disclosed), maintenance records
→ Write down a timeline while it's fresh
Step 3: Notify the Right Parties Fast
Airbnb's program summary says to inform Airbnb immediately by submitting the liability insurance intake form if you become aware of bodily injury or property damage that may be subject to coverage, and a third-party adjuster appointed by the insurer will contact you.
Also notify your own insurer (or your agent) the same day. Even if you think Airbnb will handle it, you don't want a late-notice denial from your own carrier.
Step 4: Control the Narrative
When claims go sideways, it's often because the story gets messy:
• Missing documentation
• Inconsistent statements
• Lack of maintenance history
• Undisclosed cameras or devices
• Misalignment between what you told the insurer and what you actually do
Your goal is not to "win an argument." Your goal is to make the facts boring.
Airbnb Liability vs. Damage Claims: Know the Deadlines
Even though this article is about liability, hosts often discover the insurance gaps right after a damage incident. And Airbnb's Host Damage Protection terms are strict.
Airbnb's Host Damage Protection Terms (updated February 6, 2025) say you must notify Airbnb and the guest and use reasonable efforts to resolve within 14 days of checkout (for example, by submitting a reimbursement request in the Resolution Center within 14 days). They also say within 30 days after you incur an eligible loss you must complete and file a payment request form and provide supporting documentation.
Two takeaways:
• Liability claims can surface later, but damage claims under Host Damage Protection can die quickly if you miss deadlines
• A "denied AirCover reimbursement" story is often a process failure, not a coverage promise failure
What Insurance Should STR Hosts Actually Buy?
AirCover is one layer. Your own insurance is your foundation.
Here are three common "host profiles" and the stack that usually fits. Insurance is a critical operating expense. See our full STR startup costs breakdown to understand how it fits into your total budget.
Profile A: You Live There and Rent Occasionally (True Home-Sharing)
Goal: Keep a homeowners policy, add permission to rent short-term.
• Homeowners policy that allows short-term rental activity (often via a home-sharing endorsement)
• Liability coverage that applies to paying guests
• Optional umbrella that explicitly allows rental activity (many personal umbrellas have "business pursuits" issues, so check)
Why the caution:
The NAIC warns that most homeowners policies are not designed to cover accidents from home-sharing and may deny coverage if your policy excludes or limits business activity. They recommend talking to your insurer and getting coverage aligned to your specific situation.
Profile B: Dedicated Investment Property (Non-Owner-Occupied)
Goal: Treat it like a business because it is.
• Landlord or specialty short-term rental policy that explicitly covers short-term rental use
• Commercial general liability or landlord liability that applies to transient guests
• Loss of income / business interruption (common in specialty STR policies)
Industry guidance notes that homeowners policies are designed for owner-occupied homes and may not cover business activities like short-term rentals, and it emphasizes working with your broker and insurer so your policy matches the risk. Connect with STR-specialist insurance providers through Chalet's vetted partner directory.
Profile C: Portfolio Host (6+ Listings or High Operational Complexity)
Goal: Assume AirCover may be excess and build a real commercial program.
• Commercial package designed for STR operations (property + liability)
• Higher liability limits and possibly commercial umbrella
• Workers' comp and employment-related coverages if you have employees (not just contractors)
Remember the Airbnb rule change:
If you want to scale, plan insurance like a business from day one. Use Chalet's free market analytics to identify markets where your insurance and operational costs still allow strong returns.
How Much Liability Coverage Do STR Hosts Need?
There's no single number that fits everyone, but you can reason it out.
Step 1: Start with Minimums You Cannot Avoid
• Some cities and states require liability coverage for licensing
Examples:
Massachusetts law (Chapter 175, Section 4F) requires operators to maintain liability insurance of not less than $1,000,000 per short-term rental unless offered through a hosting platform that maintains equal or greater coverage, and it requires hosting platforms to notify operators that standard homeowners/renters insurance may not cover STR-related injury or damage.
Rowlett, Texas (ordinance effective April 1, 2025) requires proof of host protection or comparable liability insurance providing coverage of up to $1 million per occurrence.
The point is not "Rowlett and Massachusetts are your market." The point is: insurance requirements are becoming normal. Your underwriting should assume you'll need proof of liability insurance.
Our rental regulations guides often include an "insurance requirements" section for specific cities (for example, Scottsdale shows a $500,000 per occurrence requirement via marketplace or direct coverage). Use them as a starting checklist, then confirm with the city's primary source. Check requirements for:
• Tucson, AZ STR regulations (requires at least $500,000 in liability coverage)
• Asheville, NC STR regulations
• Browse all regulation guides by city
Step 2: Size Coverage to Your Downside, Not Your Optimism
Ask: What's the worst credible scenario for your property?
• Pool or hot tub: severe injury potential
• Steep stairs: head injury risk
• High decks: fall risk
• Remote locations: delayed emergency response risk
• Luxury homes: higher lawsuit targets
Then ask: What personal assets are exposed if you get a judgment? That includes equity across properties, cash, and investments. (An LLC can help, but it's not a force field.)
Insurance Audit Before You List Your Airbnb
This is the part most people skip. It's also the part that prevents denied claims.
1. Tell the Truth About Use
If you rent to paying guests, say "short-term rental" explicitly.
Massachusetts law even codifies the idea that operators should notify insurers of intent to operate a short-term rental.
2. Ask These 10 Questions in One Email to Your Agent
Copy/paste and fill in the blanks:
① Does my policy allow short-term rentals of less than 30 days?
② Is liability coverage included for guest bodily injury and third-party property damage during paid stays?
③ Does the policy cover guests booked through platforms (Airbnb, etc) and direct bookings?
④ Are amenities covered: pool, hot tub, fireplace, dock, bikes?
⑤ Is assault and battery excluded? Is communicable disease excluded? Is mold excluded?
⑥ Are my cleaners/co-hosts covered while working onsite?
⑦ If the property is owned by an LLC, who is the named insured?
⑧ Does the policy include loss of income if the home becomes uninhabitable due to a covered loss?
⑨ How does this policy coordinate with Airbnb's host liability program? (Primary, excess, contribution?)
⑩ What documentation do you need from me to avoid disputes later?
3. Get the Answer in Writing
A phone call is nice. An email is evidence.
How Chalet Fits In Without Selling You Anything You Don't Need
If you're underwriting a property, insurance should be part of your model, not an afterthought.
• Use Chalet's free Airbnb analytics to sanity-check revenue assumptions before you spend time optimizing an insurance stack for a deal that doesn't cash flow
• Use Chalet's Airbnb Calculator to run ROI and DSCR at an address level so you can see how insurance costs and reserves affect the actual deal
• Use the Short-Term Rental Tools and Partner Directory to find vetted operators and services (including insurance-related partners where available) so you're not guessing in a high-stakes area
• Use Chalet's local regulation guides to catch insurance requirements early, before you buy a property you can't legally operate
• Browse Airbnb properties for sale in markets with favorable insurance and regulatory environments
• Connect with STR-specialist real estate agents who understand insurance requirements and can guide you to properties that pencil out after all costs
Airbnb Liability Insurance FAQ
Is Airbnb host liability insurance automatically included?
Airbnb says AirCover for Hosts benefits are always included and free, and by listing a property you are automatically covered whenever you host a stay booked on Airbnb.
Does Airbnb cover damage to my own house?
Not via host liability. Airbnb says liability insurance does not cover damage to your place or belongings caused by a guest, and points to Host Damage Protection for that.
Is Host Damage Protection actual insurance?
Airbnb's Host Damage Protection Terms say it is a guarantee, not an offer to insure, and it does not constitute insurance or take the place of insurance you can obtain.
If I have 6+ listings, can I still rely on Airbnb for liability?
Airbnb's program summary says that effective March 1, 2025, the host liability program may require contribution from other insurance or apply as excess depending on your other policy language.
Does Airbnb liability cover everything?
No. Airbnb lists multiple exclusions and says the exclusions list is not exhaustive.
What happens if I mix up liability and damage claims?
You'll file the wrong claim and potentially miss deadlines. Liability covers injuries to others. Damage protection covers damage to your property. Different programs, different processes.
How much does STR insurance typically cost?
A full-featured short-term rental insurance policy in the U.S. might cost around $2,000 to $3,000 per year for a single-family property (varies by location, property value, amenities). Some hosts also add a personal umbrella policy on top for extra liability coverage (often $1-2 million more) which is relatively inexpensive (~$200-$400/year).
Do I legally need insurance beyond AirCover?
It depends on your location. Many cities and states are implementing insurance requirements. For example, Tucson, AZ requires at least $500,000 in liability coverage. Your lender will also require proper insurance regardless of AirCover.
Next Step
① Run the deal with real expenses: Use Chalet's Airbnb Calculator to model insurance, reserves, and DSCR before you buy.
② Check your city's rules: Use Chalet's rental regulations guides to confirm insurance and permit requirements in your target market.
③ Build your insurance stack: Use Chalet's partner directory to connect with STR-savvy pros so your coverage matches how you actually operate.
If you do just one thing after reading this: email your agent the 10-question audit above and get the answer in writing. That one move prevents most "I thought I was covered" disasters.
