Airbnb and insurance: who pays if a guest breaks something?
It is probably the worry that stops the most people from starting. What actually happens if a guest ruins the sofa, drops a vase on the old parquet floor, or leaves the tap running while they are out? The short answer is that you are covered better than many people think, but not in the way most people assume. Here is an honest walk through what Airbnb's own protection does and does not do, why your ordinary home contents insurance is rarely enough on its own, and exactly what to do before your first guest checks in.
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AirCover sounds like insurance, but it is not quite
When you rent through Airbnb, something called AirCover for Hosts comes with it. It covers two things. Damage protection gives you up to 3 million dollars, roughly 20 million kroner, if a guest damages your home or your belongings. Liability insurance gives up to 1 million dollars, a little over 6 million kroner, if a guest or another person is hurt during the stay and you are found responsible. The damage protection also covers extra deep cleaning after a messy stay and lost income if damage forces you to cancel an upcoming booking.
It sounds reassuring, and it is a good safety net. But pay attention to the words. The damage protection is not insurance in the classic sense, but a promise from Airbnb to reimburse you under set rules. That means you have to document the damage properly and meet the deadlines, or you will not get the money.
What AirCover does not cover
This is the important part, because the gaps are bigger than people expect. AirCover does not cover ordinary wear and tear, meaning the slow ageing of furniture, floors and paint that many guests add over time. It does not cover cash, and it usually does not cover bed linen, towels and other consumables that a guest uses up or stains. Natural disasters and certain liability claims also fall outside.
Two things matter especially in 2026. First, Airbnb tightened the rules in April 2026, so there are now stricter evidence standards and a clear expectation that you took reasonable care of the home. Thin proof gets rejected more often. Second, AirCover only applies to stays booked through Airbnb. If you also rent through Booking.com or directly to the guest, you have none of that protection on those bookings. This is one of the most overlooked traps for hosts who use several platforms.
Your own home insurance rarely covers short-term letting
Many people assume that since they already have contents insurance, they are fine. Usually they are not. Insurers treat short-term letting as something close to business use, not ordinary private use of the home. So your cover can be reduced or refused outright if the damage happens while a paying guest is staying, unless you have agreed otherwise with the company.
The picture differs from insurer to insurer. Tryg, for example, offers a rental add-on you can put on top of your contents insurance, covering theft, vandalism and sudden damage while the home is let on platforms such as Airbnb. Topdanmark states that with furnished letting, your contents insurance only covers a limited scope, typically fire, water and break-in theft, but not if the guest commits vandalism or theft. Other companies such as Alka and next have similar but different rules.
The practical advice is simple and important. Call your own insurer, tell them exactly how often you rent out, whether it is a room or the whole home, and whether it is through a platform, and ask for the answer in writing. A verbal yes will not help you the day the damage has happened. Get it in black and white before you open the calendar.
Remember: there is no real deposit on Airbnb
If you are used to long-term letting, you might expect a deposit you can draw on for damage. Airbnb does not work that way. The platform normally does not take a classic security deposit from the guest, and the idea is that AirCover stands in its place. That is fine as long as the damage falls within what AirCover covers, but it also means you cannot simply hold back a sum. You depend on reporting the damage correctly and on time.
How to protect yourself in practice
Four habits do most of the work. Take good photos of the home before you start, so you can prove how things looked. Lock valuables, personal papers and anything irreplaceable inside a cupboard, so they are never in play. Always report damage quickly, in practice within 14 days and before the next guest checks in, or you risk losing the cover. And keep all important communication with the guest inside Airbnb's message system, because that is the documentation that counts if a case comes up.
Honestly, this is where it usually goes wrong
Most damage is small, a stain, a broken glass, a scratch. The problem is not the size but that you have to spot it, photograph it, gather proof and report it correctly before the next guest arrives, all while also handling the cleaning and the key handover. If you are at work or on holiday when the guest checks out, you can easily miss the deadline, and then you pay yourself. This is exactly the kind of thing a management company takes off your plate. We inspect the home between every guest, document everything from day one, make sure the right insurance sits underneath, and run any case with Airbnb, so you are covered in reality and not just on paper. If you want to know what full management costs, read our guide on the price of Airbnb management.
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Rarely on its own. Insurers treat short-term letting as close to business use, so cover can be reduced or refused while a paying guest is staying, unless you have agreed otherwise. Some companies sell a rental add-on, and others cover only a limited scope such as fire, water and break-in theft. Check your own policy before you open the calendar.
AirCover for Hosts gives damage protection of up to 3 million dollars if a guest damages your home or belongings, plus liability cover of up to 1 million dollars, and it can pay for extra deep cleaning and lost income from a cancelled booking. It does not cover ordinary wear and tear, cash, or usually linen, towels and other consumables, and it does not apply to bookings made outside Airbnb.
Report through Airbnb's Resolution Center quickly, in practice within 14 days and before the next guest checks in. Send photos and keep the communication with the guest inside Airbnb's message system, since that is the documentation that counts. Since April 2026 the evidence standards are stricter, so thin proof gets rejected more often.
Yes, tell them and get the answer in writing. Say how often you let, whether it is a room or the whole home, and whether it goes through a platform. A verbal yes will not help you the day the damage has happened.
For stays booked through Airbnb, AirCover's damage protection can reimburse you if the damage falls within the cover and you report it correctly and on time. Airbnb does not normally take a classic security deposit, so there is no deposit to hold back from. Outside Airbnb you depend on your own insurance and on what you agreed with the guest.
This is general information, not legal or insurance advice. Always check the specific terms with your own insurer.
Official and expert sources: Airbnb (AirCover for Hosts, damage protection and liability insurance, and the rules for reporting), Tryg (rental add-on for contents insurance), Topdanmark and Alka (cover when letting out a home), and Bolius and Forbrugerrådet Tænk (general guidance on insurance when letting). Dollar amounts are converted to kroner at the July 2026 rate (about 6.5 kr to 1 dollar) and are indicative. This is general information, not legal or insurance advice. Always check the specific terms with your own insurer.