Most hosts assume Airbnb's AirCover and a standard homeowner's policy have them covered. They don't. Homeowner's policies generally exclude commercial use, and AirCover has specific gaps that surface the moment something real goes wrong. This isn't legal or financial advice — but it is the honest picture.

What AirCover actually covers

AirCover for Hosts includes up to $3M in property damage protection and up to $1M in liability coverage during a confirmed stay. That sounds comprehensive. It isn't.

AirCover is secondary coverage — it pays out only if your primary insurance doesn't. And most primary homeowner's policies exclude short-term rental activity entirely, which means a claim can leave you in a gap: AirCover declines because there's a primary policy; the primary declines because the property was being used commercially.

What AirCover doesn't cover well

Loss of income when the property is uninhabitable. Damage caused by normal wear and tear. Claims where the guest disputes responsibility. Slow leaks and mold. Pets damaging property over multiple stays. Theft by non-registered guests. Attacks from unregistered pets. Any incident not directly tied to a single confirmed reservation.

What a dedicated STR policy adds

A purpose-built short-term rental policy covers the property as a commercial-use dwelling from day one. The meaningful upgrades over a homeowner's policy plus AirCover are usually:

• Business income / loss of rents coverage — pays your mortgage and operating costs if the unit is unrentable due to a covered loss
• Commercial general liability — covers incidents outside the narrow AirCover window (open house, contractor on property, vacancy)
• Contents coverage for commercial-grade items — linens, furnishings, appliances that standard policies treat as personal property
• Specific STR perils — bed bugs, squatters, guest-caused water damage

The carriers operators actually use

A few specialist carriers dominate the STR space. Proper Insurance is the most established, written by Lloyd's, and designed specifically around short-term rental risk. Safely is popular with property managers for per-booking coverage layered on top of a base policy. Slice offers on-demand coverage by the night. Obie and Steadily are increasingly common for investment-property operators looking for one policy that covers multiple rentals.

Rates vary enormously by market, occupancy, and property type. A single-family home in a standard market generally runs $100–$250/month. Condos, cabins, pool homes, and high-occupancy properties cost more.

How to decide

If your property is rented for more than 30 nights a year, you need an STR-specific policy. Full stop. AirCover is a backstop, not a primary policy. Homeowner's policies that exclude commercial use (most of them) leave you exposed on the non-AirCover nights — maintenance visits, vacancy, off-platform bookings.

What to ask any carrier

• Is this a replacement policy, or does it sit alongside my homeowner's?
• Is loss of income / loss of rents included? For how long?
• What's the deductible on guest-caused damage?
• Are long-term guests (30+ nights) covered?
• Is there a rental-income minimum or maximum?
• How does the policy handle off-platform bookings?

Compare current providers on our STR insurance comparison page.

This is not legal or financial advice. Insurance is market- and property-specific — talk to a licensed broker before making a decision.