Most hosts assume AirCover has them covered. Then something goes wrong, they file a claim, and they discover the reality. I've talked to enough hosts who've been through that experience to know it's not pleasant. This post breaks down what AirCover actually does, where the gaps are, and how Proper Insurance, CBIZ, and Safely stack up as alternatives.
What AirCover Actually Covers
Airbnb rolled out AirCover for Hosts in 2022 and expanded it in 2023. On the surface, the numbers look good: $3 million in damage protection and $1 million in liability insurance, included free with every Airbnb listing.
The damage protection covers guest-caused physical damage to your property and belongings. So if a guest breaks your dining table, stains the carpet, or damages the TV, you can file a claim. Airbnb also covers income loss if damage from a covered claim forces you to cancel upcoming reservations.
The liability portion covers you if a guest gets injured on your property and decides to sue. The $1 million limit sounds substantial, and for most scenarios it probably is.
AirCover Gaps and Limitations
Here's where things get complicated. AirCover is not an insurance policy. Airbnb is clear about this if you read the terms. It's a guarantee backed by Airbnb's own funds, which means it operates by their rules, on their timeline, and with their definitions.
A few gaps that matter:
Natural disasters and weather damage. If a storm damages your roof during a guest's stay, AirCover doesn't cover it. That's a homeowner's or landlord's insurance issue, and most standard policies have short-term rental exclusions built in.
Theft without proof. AirCover requires you to prove a guest stole something. If cash disappears or a small item goes missing, good luck. You need evidence pointing to a specific guest.
Cash, jewelry, and collectibles. These categories are excluded entirely.
Shared or long-term stays. AirCover has specific exclusions and reduced coverage for certain listing types. If you're renting a room in your primary residence, the rules change.
The claims process itself. This is the biggest practical issue. You have 14 days from checkout to file a claim, and you need to document everything before a new guest checks in. Hosts regularly report that Airbnb's Resolution Center disputes damage amounts, offers settlements well below replacement cost, or denies claims due to insufficient documentation. I've seen hosts submit $4,000 in documented damage and receive $800 back.
AirCover is better than nothing. But it's not a substitute for real vacation rental insurance.
Proper Insurance Overview
Proper Insurance is the most well-known dedicated short-term rental insurance provider in the U.S. right now. They write actual insurance policies, underwritten through Lloyd's of London, specifically designed for STR properties.
What sets Proper apart is that their policies are built around the reality of STR hosting. Coverage includes:
- Building and contents replacement cost coverage
- Business income loss (not just Airbnb's narrow version)
- Liability up to $1 million or $2 million depending on the policy
- Animal damage (a major gap in most standard policies)
- Bed bugs, which almost no standard policy touches
Their policies replace homeowner's, landlord's, and business liability coverage in one package. That matters because most standard homeowner's policies have exclusions for commercial activity, and if you're renting through Airbnb, many insurers consider that commercial.
Cost for Proper Insurance typically runs $1,500 to $3,000 per year for a single-family home, depending on location, property value, and coverage limits. For a property in a higher-risk area like coastal Florida or mountain Colorado, expect the higher end of that range.
The downside: Proper is not available in all states. They've been expanding, but if you're in a state they don't serve yet, you'll need to look elsewhere.
CBIZ Overview
CBIZ is an older name in the STR insurance space, operating through their specialty programs division. They offer vacation rental insurance as a standalone product and also work through some property management company group programs.
CBIZ policies tend to be more flexible in structure. They can write coverage as an endorsement on an existing policy (in some cases) or as a standalone commercial policy. For hosts who own multiple properties, CBIZ is worth a conversation because they can sometimes build portfolio-level coverage.
Coverage is competitive with Proper: building and contents, loss of income, and liability. The liability limits go up to $1 million standard, with umbrella options available.
Pricing is harder to generalize with CBIZ because they quote based on much more granular underwriting. A $250,000 single-family home in Tennessee might come in around $1,200-$1,800 per year. A larger property in a coastal market will be different.
One practical consideration: CBIZ works better with a broker relationship. You can reach them directly, but having an independent insurance broker who knows the STR space helps you get the right policy structure. If you're just one property and want a straightforward online process, Proper is easier to navigate on your own.
Safely Overview
Safely is a different product than Proper or CBIZ. It's designed as a per-stay coverage model rather than an annual policy. Hosts either pay per booking or pass the cost to guests (Safely charges guests a small protection fee at checkout on some platforms).
Per-stay coverage runs roughly $8 to $12 per night for most properties, which adds up. At $10 per night with 200 occupied nights per year, that's $2,000 just for coverage, and you're not getting the building-level protection that a full policy provides.
Safely works better as a supplement or for hosts who rent occasionally and don't want an annual policy. If you're renting your primary residence a few weeks a year, Safely makes sense. If you're running a dedicated STR, a full annual policy from Proper or CBIZ gives you more protection at a comparable or lower total cost.
Safely's liability limits are also lower: typically $1 million per occurrence, which is fine but doesn't offer the same flexibility on umbrella coverage.
Cost Comparison
Here's a rough breakdown for a single-family STR home valued at $400,000:
| Provider | Estimated Annual Cost | Type |
|---|---|---|
| AirCover | $0 | Guarantee (not insurance) |
| Proper Insurance | $1,800 - $2,500 | Annual policy |
| CBIZ | $1,500 - $2,200 | Annual policy |
| Safely | $1,800 - $2,400 (at 200 nights) | Per-stay coverage |
The per-stay math on Safely can work in your favor if occupancy is low. At 100 nights, you're spending $1,000-$1,200, which undercuts an annual policy. Above 150 nights or so, an annual policy usually wins on cost.
Coverage Comparison
AirCover covers guest-caused damage and liability, but only within Airbnb's framework and claims process. It doesn't replace your homeowner's policy. It doesn't cover structural issues, non-guest damage, or most natural events.
Proper and CBIZ both cover:
- The building itself (replacement cost, not ACV)
- Your contents
- Loss of rental income from covered losses
- Liability for guest injuries
- Damage types that homeowner's policies exclude for short-term rentals
The critical difference from AirCover: you're dealing with a real insurance company, a real adjuster, and a real policy with defined terms. Disputes still happen, but you have legal protections that don't exist with Airbnb's internal guarantee process.
Recommendations by Risk Level
If you rent occasionally (under 60 nights/year): AirCover plus Safely per-stay protection is a reasonable combination. Keep your homeowner's policy and ask your insurer to add a short-term rental endorsement if they offer one.
If you're a full-time host with one property: Get a real policy. Proper Insurance is the easiest to navigate and their STR-specific coverage (including animal damage and bed bugs) is worth it. Budget $1,800-$2,500 and treat it like any other operating expense.
If you have multiple properties: Talk to CBIZ or an independent broker who specializes in STR. Portfolio policies can reduce per-property costs and simplify your coverage. Having three separate Proper policies isn't necessarily wrong, but there may be a more efficient structure.
If your property is in a high-liability situation (pool, hot tub, deck, trampoline, stairs to a loft), don't rely on AirCover's $1 million liability limit alone. Look at umbrella policies on top of your base coverage. A $1 million umbrella typically runs $200-$400 per year and adds meaningful protection.
One thing I tell every host: talk to your current homeowner's insurance carrier first. Some will write a short-term rental endorsement that's cheaper than a standalone policy. Others will drop you if they find out you're hosting. Knowing where you stand before you have a claim is better than finding out after.
Insurance is one of those things that feels optional until you need it. I've seen a host lose $18,000 in a pipe burst and discover AirCover doesn't cover water damage from building failures. I've seen another host get sued by a guest and spend two years dealing with it because they had no real liability coverage. Neither of these are edge cases.
Getting your coverage sorted is important, but so is making sure guests actually find and book your listing in the first place. A well-protected listing that nobody clicks on is still losing money.
If you want a detailed look at what's holding your listing back, get a professional audit from STRAudits. For $49, you get specific feedback on your title, photos, description, pricing strategy, and more, delivered within 48 hours. Most hosts who go through the audit find at least two or three changes they can make immediately.