Do I need STR insurance or is AirCover enough?

Category: Legal & Regulations

By: Omar Hassan

Posted: 2026-02-09T10:14:43.384Z

Airbnb offers "AirCover for Hosts" which includes Host Damage Protection ($3M), Host Liability Insurance ($1M), and coverage for income loss. With all that free coverage, do I really need separate STR insurance? My homeowner's insurance doesn't cover short-term rental activity (confirmed with my agent). What insurance do other hosts carry and has anyone actually had to use it?

Reply by Nolan Peters:

**AirCover is NOT insurance. It's a marketing program with a lot of fine print.** Treat it as a bonus, not your primary protection. Problems with relying on AirCover alone: 1. **Claims are often denied or reduced.** I've filed 3 claims — won 2 fully, 1 was reduced by 60% for "pre-existing wear." The denial process can take weeks. 2. **Coverage gaps.** AirCover doesn't cover theft, doesn't cover your personal belongings in shared spaces, and has specific exclusions for things like pets and "parties" (vague definition). 3. **You only have 14 days to file.** Miss the window and you get nothing. 4. **No coverage for bookings from other platforms.** If a VRBO guest causes damage, AirCover doesn't apply. 5. **Liability claims go through Airbnb's process.** If a guest sues you for injury, you want YOUR attorney and YOUR insurance company handling it, not Airbnb's. **What I carry instead:** 1. **STR-specific insurance (Safely https://safely.com):** $0 deductible, covers guest damage, theft, liability, lost income. Integrates directly with my booking calendar. ~$5-8 per booking. 2. **Umbrella policy ($1M):** Covers liability beyond my STR policy limits. ~$200/year. 3. **I still USE AirCover** as a first line of defense for small damage claims. But my real protection is my own insurance. The peace of mind is worth the cost. One guest injury lawsuit without proper insurance could wipe out years of hosting income.

Reply by Michael Thompson:

I use Steadily (https://steadily.com) for my STR insurance. Compared a bunch of options: - **Safely:** Best for per-booking pricing. Good if you have variable occupancy. Integrates with Airbnb/VRBO calendars. - **Steadily:** Best for annual policy pricing. Good if you have consistent high occupancy. More traditional insurance structure. - **Proper Insurance:** Higher premiums but very comprehensive coverage. - **CBIZ:** Mid-range pricing, good reputation for claim payouts. I went with Steadily because my properties are 75%+ occupied year-round, so the annual policy was cheaper than per-booking pricing. I pay ~$1,200/year for my 2BR condo which covers $500K in property damage + $1M liability. **Key things to look for in any STR policy:** - Coverage for ALL booking platforms (not just Airbnb) - Liability coverage for guest injury - Loss of income coverage (if your property is damaged and can't be rented) - Theft coverage (guests do steal things) - No "commercial activity" exclusion (which would void coverage for STRs)