Airbnb is now offering guest travel insurance in the United States, the United Kingdom, and eight European Union countries. It had taken the company at least two years to complete. Unlike its free Aircover for guests program, this travel insurance is a paid product. Travelers can purchase it at the time of booking. The insurance program is supported by major insurance companies (e.g. Europ Assistance, Generali, AON). Let’s look at what Airbnb travel insurance covers, when it can be used, and how it affects existing host cancellation policies. We’ll also look into whether AirBNB travel insurance is worth it.
Airbnb is not the first vacation rental listing platform to provide travelers with travel insurance. For many years, Vrbo has sold Generali (formerly CSA Travel Protection) travel insurance products in the United States. At a time when online travel agencies like Hopper are promising incremental revenues from FinTech products to their investors, it is also beneficial for Airbnb to announce a way to make money on insurance products, after, for example, providing free host insurance liability.
Does Airbnb Provide Travel Insurance?
The short answer is no, Airbnb does not offer travel insurance. Hosts, on the other hand, are covered by the Host Guarantee and Host Protection Insurance Program. Perhaps as Airbnb grows and expands, the company will develop an insurance program, but for the time being, travelers must look elsewhere for travel insurance for their accommodations.
The Airbnb website discusses what to look for when booking travel insurance through an outside insurance company, such as aggregators (third parties) or buying direct. Consider the following factors when shopping for travel insurance:
- Is your trip changing for any reason?
- When traveling, do you think you’ll need medical coverage?
- Or could your journey be hampered?
All of these concerns are legitimate.
Where Can I Get Airbnb Travel Insurance?
Airbnb’s guest travel insurance is now available in the following countries:
- U.S.,
- U.K.,
- Germany,
- Spain,
- Italy,
- Ireland,
- Netherlands,
- Belgium,
- Austria,
- Portugal
Airbnb intends to offer travel insurance to guests in other countries in the future. We guess that Airbnb will then target other European Union markets, such as France because it has already established some insurance operations within the EU. Other countries with similar insurance industry structures, such as Australia, could then join.
In the United States, implementing insurance requires going country by country, and even state by state. Insurance regulations are stringent and vary from country to country in the EU and from state to state in the US. Things will most likely take longer in South America, parts of Asia, and Africa.
What Airbnb Travel Covers in the United States:
The Generali insurance company provides Airbnb travel insurance in the United States. The strategy entails:
- Trip cancellation: If you cancel for a covered reason, such as illness or injury, flight cancellations and delays due to weather, or mandatory evacuations due to weather, you will be reimbursed for up to 100% of your non-refunded Airbnb reservation cost.
- Travel delay: You may be reimbursed for certain additional expenses incurred if your trip is delayed for 12 hours or more due to a covered reason, such as flight delays, passport theft, or inclement weather.
- Medical: Get reimbursed for doctor-ordered medical services such as hospitalization, ambulance services, and prescription medications while on your trip.
- Baggage: Get reimbursed for lost, stolen, or damaged luggage, lost, stolen, or damaged travel documents, and unauthorized credit card use while on vacation.
Other coverages and benefits include 24-hour emergency and travel assistance services. You can get assistance with anything from a medical referral to a restaurant recommendation with just a phone call.
What Does Airbnb Travel Insurance Entail For Hosts?
Airbnb travel insurance for guests guarantees payment for up to 100% of non-refunded Airbnb reservation costs if their trip is disrupted by specific events, such as a natural disaster.
- Inclement weather,
- Travel documents stolen,
- Severe illness
Airbnb travel insurance is more akin to trip cancellation insurance that only applies under certain conditions rather than a cancel-for-any-reason insurance product. Essentially, if a traveler is forced to cancel their trip:
- The current host cancellation policy will be followed.
- Consider a reservation made under the Airbnb Strict cancellation policy. It allows guests to get a full refund if they cancel within 48 hours of booking and at least 14 days before the check-in time of a listing. In the event of a cancellation within 48 hours of the check-in date, the guest is only entitled to a 50% refund. As a result, the host only recoups half of the cost of the Airbnb reservation.
- If certain events listed and covered by Airbnb travel insurance occur, travel insurance can refund up to 50% of the remaining amount.
- It should be noted that, unlike Aircover, the insurance provider will not seek restitution from the Host if a guest files a travel insurance claim.
Is AirBNB Travel Insurance Worth It?
When you travel, you quickly learn that costs can add up. And if you’re trying to save money, you might be wondering if Airbnb travel insurance is worth it. The good news is that Airbnb travel insurance is well worth it in terms of what you pay and what you might receive.
Before prospective travelers buy insurance, they should consider whether they need it. When the only upfront cost is a plane ticket or a small deposit, the cost of insurance may be greater than the potential loss.
Following that, you should review the cancellation policies of the specific airline, cruise line, or resort you’ve chosen. The pandemic compelled travel companies to develop better cancellation policies for customers, which means that in most cases, tickets can be rebooked for less than the cost of purchasing a travel policy.
AirBNB Travel Insurance Cancellation
It is a system in place to manage cancellations from both guests and hosts. There are several cancellation policies for Airbnb travel insurance, depending on the terms and payout. Depending on the cancellation policy they choose, hosts can be compensated in part for cancellations.
Airbnb Cancellation Options
Let’s look at the various types of cancellation travel insurance policies available on the Airbnb platform so you can decide which one is best for your vacation rental listing.
- Flexible Policy
- Moderate Policy
- Strict Policy
- Long-term Policy
- Super Strict 30 Days Policy
- Super Strict 60 Days Policy
Select an Airbnb Travel Insurance Cancellation Policy that is appropriate for your listing!
When it comes to Airbnb travel insurance cancellation policies, you must make an informed decision, understanding how it affects your bookings and rating. Dealing with cancellations is inconvenient because it gives you little time to find a replacement guest or recover lost revenue. Selecting what works best for your listing will increase both bookings and ranking!
Airbnb Guest Refund Policy and Cancellations
The cancellation policy of Airbnb travel insurance and its refund policy are inextricably linked. Under Airbnb’s policy, there are specific instances or problems for which guests are eligible for a refund. In the following cases, guests may be eligible for Airbnb refunds:
#1. Accommodations are not available.
If a host cancels the reservation within 24 hours of check-in, changes the reservation details without the guest’s permission, or fails to provide the keys or access code for check-in.
#2. Listing information that is incorrect
The listing description contained inaccuracies or omissions. This could be influenced by a number of factors, including the property’s size, location, number of bedrooms, and amenities. An issue could also be a broken or malfunctioning appliance.
What Effect Will Airbnb Travel Insurance Have On Existing Host Cancellation Policies?
The cancellation policy of a host is unaffected. If a guest cancels, they forfeit any money owed under the cancellation policy they agreed to. The deposit is kept by the host.
The travel insurance allows the guest to request that the insurance company refund the money that the host has kept for themselves (as per the existing cancellation policy).
As a result, Airbnb has devised a method to enforce host policies while also allowing guests to mitigate risk through travel insurance. If travelers who purchase a policy cancel their booking for a covered reason, they will be able to file a claim for up to 100% of their non-refunded Airbnb booking cost, according to the company. This may reduce the likelihood of guests requesting refunds from their hosts outside the terms of their hosts’ cancellation policies.
How Can You Purchase Airbnb Guest Travel Insurance?
During the booking process, guests have the option to purchase travel insurance. Airbnb guest travel insurance cannot be purchased separately or after booking.
- Guests have the option to purchase travel insurance when making their reservation.
- Dedicated screens provide information about the policy’s coverage and key exclusions.
- If they want, they can add travel insurance to their booking and check out.
- The travel insurance premium is calculated as a percentage of the total trip cost and will be displayed as a line item at checkout.
- Guests who purchased travel insurance will receive an email confirmation with their policy details and information on how to file a claim after completing their reservation.
Is it free or not?
The Airbnb travel insurance is not free, but it can be purchased at the time of booking and covers up to 100% of the Airbnb booking cost.
Is It Possible To Get A Refund After Cancellation?
In general, whether or not you can get a refund after canceling an Airbnb reservation is determined by the cancellation policy associated with your rental. Airbnb hosts can select from six different cancellation policies, ranging from a flexible policy that allows free cancellation until 14 days before check-in to a “super strict 60 days” policy that requires guests to cancel 60 days before check-in and only refunds 50% of the nightly rate and cleaning fee.
However, in response to the COVID-19 pandemic, Airbnb implemented an extenuating circumstances policy, which allows both guests and hosts to cancel Airbnb stays booked on or before March 14, 2020, with a check-in date between March 14, 2020, and May 31, 2020. According to the Airbnb website’s policy:
“Cancelling guests will have a variety of cancellation and refund options, and hosts can cancel without incurring a fee or affecting their Superhost status.” For covered cancellations, Airbnb will either refund or issue travel credit that includes all service fees.”
You must also attest to or provide documentation of your extenuating circumstance, according to the policy. Log into your Airbnb account and visit your Trips Page to view the cancellation and refund options for each trip to learn more about specific cancellation policies associated with your Airbnb bookings.
Conclusion
Airbnb has been developing its guest travel insurance product for over two years and has announced that it will be available in Spring 2022. The COVID-19 pandemic has compelled Airbnb to launch this product as soon as possible. In ten countries, the company is launching travel insurance as a paid product. More countries, at least within the European Union, should be covered in the near future.
Airbnb adds this paid service to its free Aircover booking guarantees. It wants to demonstrate that it already provides a high level of security, but that money can buy guests something extra. It doesn’t hurt that insurance products have high-profit margins, and it’s also a good move for Airbnb’s bottom line.
Frequently Asked Questions
What coverage do I have if I want to cancel or interrupt my trip?
Travel insurance policies typically cover trip cancellation or interruption. Coverage is provided for cancellation or interruption due to events beyond your control and must typically be stated expressly in the policy.
Does my travel insurance policy cover me if I cancel an upcoming trip because I am concerned about COVID-19?
Standard travel insurance does not cover you if you refuse to travel due to COVID-19 fears or concerns. For more information, see What is “Cancel for Any Reason” (CFAR)? If you have COVID-19, you should check to see if your policy allows cancellation for your illness and if COVID-19 is excluded.
What is “Cancel for Any Reason” (CFAR) protection?
CFAR protection is different from travel insurance, but it may be offered in addition to or instead of travel insurance. A CFAR benefit, unlike trip cancellation or trip interruption insurance, is not intended to cover only unforeseeable events.
Do I have any rights if my flight is cancelled?
If you have an airline ticket and your flight is canceled, regardless of whether you have travel insurance, you have certain contractual rights.
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