Understanding AirCover, Airbnb’s Built-In Insurance

AirCover is a form of travel insurance offered by Airbnb, providing coverage for guests and hosts in the event of a booking gone awry. It’s included automatically at no extra charge when a booking is made; you don’t need to select this option when checking out or creating a listing.

If a serious situation arises and neither party is able to resolve it, you can escalate the issue to customer service and Airbnb can offer a solution — for example, a refund for a guest who feels unsafe.

However, guests who are forced to take a refund may face issues with booking new accommodations at the last minute. In these cases, travel insurance and hotel points can help keep your out-of-pocket costs low.

Guests who book with Airbnb receive AirCover. AirCover kicks in when there’s a serious issue with your Airbnb and you’re unable to resolve it with your host.

Here are some situations in which you could be covered with AirCover:

• Host cancellation: If a host cancels a reservation within 30 days of check-in.

• Unable to check-in: If you can’t get into your Airbnb on arrival and your host doesn’t respond or can’t solve the issue.

• Inaccurate listings: If the listing is significantly different than advertised and your host can’t resolve the issue. 

• If you feel unsafe: If you feel unsafe in the Airbnb, there’s a 24-hour safety line that you can contact.  

If you end up in one of the above situations, AirCover can help. There are two options on offer:

• Rebooking at a different property: Based on availability and comparable pricing, Airbnb will rebook you in a different property. 

• Refund: If there isn’t another place or you prefer not to rebook, Airbnb can give you a full or partial refund. 

Note that while AirCover sounds nice in theory, guests can often struggle with last-minute issues. Since rebooking is based on availability and comparable pricing, Airbnb may opt to give a refund rather than rebook when prices are high. This can leave guests with huge last-minute bills to pay for alternate accommodation.

Hosts are also entitled to AirCover protection, which can cover them when guests damage their property or other issues occur.

AirCover for hosts includes a few types of protection:

• Guest identity verification.

• Damage protection: Up to $3 million for eligible damages.

• Liability insurance: Up to $1 million in the event you’re found legally liable for a guest being hurt or their property being stolen or damaged during a stay. 

• Experiences liability insurance: Up to $1 million if you’re found responsible for a guest becoming injured during an experience that you’re hosting. 

Note that AirCover doesn’t replace your personal insurance. You’ll likely need to maintain your own personal insurance on the property, especially if you have a mortgage or a lien.

When AirCover isn’t enough: Alternatives to consider

AirCover is nice to have since it provides a level of protection to guests and hosts. However, its coverage and resolution can be unhelpful mainly to guests who are forced to take a refund when last-minute booking prices are expensive.

Rather than relying on AirCover to solve issues, those who are traveling may want to consider additional protection.

Although travel insurance can be limited when it comes to covering bad Airbnbs, there are some situations in which it can help. For example, if you arrive to your Airbnb and the toilets aren’t working, it’s uninhabitable. A vacation rental that you’re unable to use is a valid reason for trip interruption or trip cancellation insurance to kick in.

Purchasing a travel insurance policy can be a good idea, but you’ll always want to compare multiple policies before doing so. Aggregators such as Squaremouth can generate quotes from multiple companies at once, allowing you to review them quickly and easily.

Losing out on your vacation because of a bad Airbnb shouldn’t be a thing. If you don’t have travel insurance (or its protections won’t work for your situation), having a stash of hotel points on hand can help save you from inflated last-minute booking costs.

Hotel points can be especially helpful in situations in which cash rates are high, since hotels will often charge a fixed amount of points per night. Even with hotel chains whose points rates change nightly, redeeming those rewards can mean the difference between having somewhere to stay without an out-of-pocket cost or forking over money for an accommodation you wouldn’t have voluntarily chosen.