Airbnb host insurance: your guide to comprehensive protection
22.10.2025
4
Minutes
Katrin Straub
Managing Director at nextsure
Renting out via Airbnb carries financial risks that your personal insurance often does not cover. A single claim could result in costs of over €10,000. Learn in just seven minutes how to protect yourself fully.
The topic in brief and concise terms
Conventional household contents and liability insurance policies generally do not cover damage arising from Airbnb rentals, which creates a dangerous coverage gap.
Airbnb’s AirCover is not full insurance and excludes important risks such as normal wear and tear, which is why a dedicated landlord insurance policy is essential.
As a landlord, you are personally liable under Section 823 of the German Civil Code for the safety of your guests; specialised landlord liability insurance protects you against high claims for damages.
Risk analysis: The coverage gap in standard insurance policies
Many hosts lull themselves into a false sense of security and rely on their private liability and household contents insurance. These policies often explicitly exclude commercial or semi-commercial use, which includes regular short-term letting. In the event of a claim, for example water damage caused by a guest costing 15,000 euros, the insurer refuses to pay. The financial burden remains 100 per cent with you as the landlord. This gap in cover is the biggest single risk for private hosts. Inadequate protection can therefore quickly lead to claims that threaten your very existence and could be avoided with the right policy.
The assumption that Airbnb’s platform guarantees would cover all damage is also a misconception. These programmes are often not genuine insurance contracts and only offer limited protection. You therefore need to analyse your individual risks carefully and understand where your existing contracts reach their limits. Only then can you correctly assess the need for specialist cover and make the right decision for your investment.
AirCover versus dedicated policies: A comparison of benefits
Airbnb offers basic protection with AirCover, which includes liability cover of up to one million US dollars and property damage protection of up to three million US dollars. This protection is included automatically, but it has crucial weaknesses. For example, it does not apply to normal wear and tear or theft of cash. It is important to note that AirCover is not insurance in the legal sense and claims can be rejected. A dedicated Airbnb landlord policy offers more reliable and often more comprehensive protection here.
Specialist insurance for landlords of holiday apartments goes well beyond the basic protection offered by platforms. It provides clear, enforceable contractual terms and often covers additional risks. Here is a brief comparison of typical benefits:
Rental loss: Specialist policies often compensate for lost rental income for up to 120 days if the property cannot be let due to damage.
Guest negligence: Many policies also cover damage caused negligently by tenants up to a sum of 5,000 euros.
Comprehensive liability cover: A good landlord legal protection insurance offers blanket cover sums of five million euros or more for personal injury, property damage and financial losses.
Low annual premium: Solid cover is often available for under 100 euros per year, for example for 84.71 euros.
These additional benefits close critical gaps left by the standard protection offered by booking platforms.
Liability pitfalls in detail: your legal obligations as a host
As a landlord, you are subject to the so-called duty of care and safety, which is enshrined in the German Civil Code (BGB). Under Section 823 of the BGB, you are liable for damage suffered by guests as a result of a breach of this duty. If, for example, a guest trips on a poorly lit staircase and claims €20,000 in compensation for pain and suffering, you must cover this out of your personal assets. Your standard personal liability insurance is highly likely to refuse cover.
Many landlords underestimate that this duty also includes the regular maintenance of appliances and ensuring fire protection. A defective smoke alarm or an unmaintained gas barbecue can lead to unlimited liability in the event of a claim. A specialised home and contents insurance policy for landlords is designed to absorb precisely these risks. It assesses the question of liability, defends against unjustified claims and pays damages in the case of justified claims. Without this protection, you expose yourself to an incalculable financial risk.
Managing Property Damage Properly: From Damage to Compensation
A red wine stain on the new sofa or a deep scratch in the parquet flooring – property damage is annoying and common. While AirCover covers damage caused by guests, the exclusions are important. Damage caused by pets or additional cleaning costs after heavy smoking are often covered, but normal wear and tear is excluded. Accurate documentation of the damage within 72 hours is crucial for a successful claim settlement. A contents insurance policy for the holiday apartment can be a valuable addition here.
To be optimally prepared in the event of damage, you should establish a clear process. This guide will help you enforce your claims effectively:
Document the damage: Take high-resolution photos or videos from different angles immediately after discovering it.
Contact the guest: Inform the guest about the damage and try to reach an amicable agreement.
Observe deadlines: Report the damage immediately, but no later than the deadline set by the platform or insurer, usually only a few days.
Obtain quotations: Obtain at least two independent quotations for the repair or replacement.
Submit the claim: Submit all documents together to the insurer or platform.
A structured approach increases the chances of compensation by more than 50 per cent and minimises your administrative effort.
Expert tips for optimised insurance cover
Comprehensive cover goes beyond simply taking out a policy. An important aspect is the tax treatment: You can usually claim the premiums for your Airbnb landlord insurance as deductible expenses against income from renting and leasing. This reduces your tax burden by up to 45 per cent of the premium paid, depending on your personal tax rate. You should also consider loss of rent insurance for landlords to protect yourself against vacancy after a loss.
Our expert tip: Keep a detailed handover report for every check-in and check-out. Document the condition of the flat and its contents with photos and have it signed by the guest. This creates clear evidence and can be crucial when enforcing claims for damages, particularly for minor damage under 500 euros. Such documentation is the basis for professional risk management and protects you from lengthy disputes.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete suggestions for improvement.
More useful links
Federal Statistical Office provides data and statistics on the hospitality industry and tourism in Germany.
Federal Ministry for Economic Affairs and Climate Action provides information on new EU rules for the short-term rental of accommodation.
Laws on the Internet shows Section 535 of the German Civil Code (BGB), which regulates the tenancy agreement and the obligations of the contracting parties.
German Tenants' Association reports on the welcome for the discussion of the Short-Term Rental Data Exchange Act in the Federal Cabinet.
Consumer Advice Centre offers information and tips on tenancy agreements.
Finanztip explains renting out via Airbnb in the context of subletting and gives financial tips.
FAQ
Do I need a special Airbnb landlord insurance policy?
Yes, special insurance is strongly recommended. Your private policies usually do not provide cover for the risks of short-term letting. A dedicated policy closes the cover gap for liability and property damage and protects your assets.
What are the most common types of damage in holiday rentals?
The most common types of damage include damage to furniture such as scratches or stains, faulty electrical appliances and damage to sanitary facilities. Liability claims in which a guest is injured also occur and can cause particularly high costs.
Does the insurance also cover theft by guests?
It depends on the respective policy. AirCover excludes theft of cash and securities. However, a good, specialised contents insurance policy for holiday homes can cover theft by guests. Check the terms and conditions carefully.
What happens if a guest causes damage and their own liability insurance does not pay out?
If the guest cannot pay for the damage themselves and their insurance refuses to cover it, without your own landlord insurance you will be left to bear the costs. A good landlord policy also covers damage caused negligently by tenants.
Is insurance against rental loss worthwhile?
Yes, absolutely. If your holiday apartment is unlettable for several weeks or months due to major damage (e.g. a burst water pipe), rent loss insurance compensates for the lost income. This safeguards your cash flow and is often included in good landlord packages.
Can I deduct the cost of the insurance from tax?
Yes, you can claim the premiums for insurance policies related to your letting activity as allowable expenses against your income from letting and leasing for tax purposes. This reduces your tax burden.
