Platform host protection: what it is — and what it isn’t

Most short-term rental platforms offer a host protection program or host guarantee that provides limited liability or property damage coverage. These are intended as supplemental protections, not full insurance replacements.

Typical platform protections

• Host liability coverage: third-party bodily injury and property damage up to a capped limit (e.g., $1M) — subject to exclusions and documentation requirements.
• Host damage reimbursement: reimbursement for guest-caused damage, often limited and with many exclusions.
• Short claims window: platforms require fast claims, proof, and often prefer to resolve disputes off-platform first.

Common limitations & exclusions

• Commercial activity, business income, or event hosting may be excluded.
• Damage to shared spaces or intentional acts can be excluded.
• Coverage limits may be lower than needed for full rebuilds or liability suits.
• Platforms may deny coverage if host failed to disclose material facts or follow local laws.

Recommended insurance for hosts

Tell your insurer about hosting and choose one of these approaches:

1. Short-term rental endorsement — adds host liability, property damage, and sometimes loss of income to your homeowner policy.
2. Dwelling/landlord policy — for homes primarily used as rentals (longer-term hosting).
3. Commercial or hybrid host policy — for high-volume hosts, multiple units, or properties used for events.
4. Standalone contents insurance — covers guest damage to personal property inside the unit (useful for furnished rentals).

Loss of income & business interruption

Consider options that replace lost rental income if the property becomes uninhabitable after a covered loss. NFIP (flood) rarely includes ALE for short-term rentals; private carriers sometimes offer it as an add-on.

Practical host risk-reduction checklist

• Maintain accurate records of bookings, guest IDs, and communications.
• Use a professionally written rental agreement with house rules and maximum occupancy clauses.
• Install smoke/CO detectors, smart locks, property cameras in common exterior areas, and water sensors.
• Require security deposits and use platform damage claim processes promptly.
• Limit or prohibit high-risk activities (parties, events) in your listing and add clear penalties.

Local rules, short-term rental registration & taxes

Many cities require registration, transient occupancy tax collection, safety inspections, or limits on short-term rentals. Noncompliance can void insurance coverage — always research local regulations and include compliance steps in your hosting process.

Claims: best practices for hosts

1. Collect evidence immediately: photos, messages, invoices, police reports if needed.
2. Notify your insurer and the platform as soon as possible.
3. Preserve damaged items and document their condition for adjusters.
4. Keep records of repair estimates and guest communications.

When to consider commercial underwriting

If you host multiple properties, exceed X nights per year (varies by insurer), or list for events and experiences, you may need commercial-grade coverage. Underwriting may look at revenue, guest screening, safety procedures, and property managers in place.