Airbnb Insurance

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.

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 areaAirCoverVelaris
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.

Guest slip-and-fall injuries

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.

Pool, hot tub, and amenity accidents

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.

Negligence and failure-to-maintain claims

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.

Multi-use property complications

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.

Frequently asked questions

Is AirCover real insurance?

No. AirCover is a reimbursement program administered by Airbnb, not an insurance policy regulated by state departments of insurance. Airbnb decides whether to pay, how much to pay, and when. There's no independent claims adjuster, no binding policy language, and no regulatory oversight. It's a platform benefit — not a coverage contract.

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.

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.

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