The travel industry is thriving right now, and online booking platforms such as Airbnb are taking it to the next level. People can use the system to book a place anywhere in the world, rather than opting for the typical tourist-saturated resorts. But, it relies heavily on kind-hearted, yet money-driven individuals opening up their homes for guests to make bookings.
If no-one made their home available, there would be no Airbnb. So, the platform must make sure the hosts are well protected. If hosts have bad experiences, Airbnb’s reputation will be tarnished, and their user-base will quickly plummet.
So, how exactly does Airbnb protect hosts? Well, that’s exactly what we’re going to discuss in this post. Although they do take various approaches, after all, hosts should be their top priority. If hosts are happy, guests will have amazing encounters, and Airbnb a prospering platform.
Airbnb Insurance Program
Occasionally, unexpected injuries will occur during a guest’s visit, which could have a financial impact on the host. For instance, a guest may break their leg after slipping on the wooden floor and then file a claim against the host for compensation. So, Airbnb set up the insurance program to protect guests from these third-party claims.
Once the guest tries to claim against the host, the host can use the Airbnb platform to file a counterclaim to protect themselves. The program is capped at $1 million per property.
What is the Airbnb Host Guarantee?
With the Airbnb Host Guarantee, there’s deep appreciation for hosts, and a sense of value for them in the community. Essentially, if any damages occur during a guest’s stay, the host can file a claim under the host guarantee initiative. Although, this scheme differs from some of their other strategies designed to protect hosts.
That’s because it’s mainly targeted at those hosts who have incurred horrendous damages, which are, of course, very rare. So, the host may claim for anything up to $600,000.00, but it doesn’t cover things like stolen money, faulty security, and issues with pets. Oh, and did we mention that the host guarantee is automatically included, so you won’t have to pay a penny for it?
How Does Airbnb Security Deposit Work?
Security deposits are often questioned, as hosts assume they’re the same as the Host Guarantee. But, in fact, they’re very effective in a unique way. As a host, you can set up a security deposit (you have full control over how much it is) when you compose your listing, which will then be stored in a virtual escrow (money will only be released if terms are broken, but no money is actually paid beforehand).
The guest will agree to your terms, and if any of those terms are violated during their stay, the issue can be resolved quickly and easily with them being charged the security deposit. For example, if they smoke in the house when they aren’t supposed to, the issue can be settled almost instantly. You can discover a more in-depth explanation of how exactly security deposits work in our previous post.
Difference Between Airbnb Host Guarantee and Security Deposit
At first glance, they may seem identical; however, they actually serve very different purposes. The host guarantee is gifted to every guest and covers severe damages of up to $1,000,000.00, which the host has to file a claim for.
On the other hand, the security deposit is optional, and the host has the freedom to set their own deposit amount on their listing. Normally, if the terms are broken, the issue can be settled between the two parties, and it very rarely requires intervention from Airbnb. Although, if there are disputes, Airbnb are able to step in.
We hope this post provided you with some value, cleared up some misconceptions and allowed you to make sense of it all. If you’re looking for some further guidance on all-things-Airbnb, then you can check out this page, which is full of tips, tricks, and information!