Guest Damage: Deposits, Claims, and Liability Insurance

A guest damaged your rental: deposit, claim, and insurance, step by step

A red wine stain on a light-coloured sofa, a cracked TV screen, a flooded bathroom from an unattended washing machine, damage caused by guests isn't a question of "if," it's a question of "when." A host who has a procedure ready before it happens gets their money back within days. A host without one loses both the equipment and the time spent on disputes that often end without compensation anyway.

Key takeaways

• Documenting the apartment's condition before a guest arrives (photos, a short description) is the foundation of every successful claim
• Airbnb has a built-in system, AirCover, for hosts with a compensation cap, but it requires reporting within a set window and with evidence
• A deposit collected directly by the host, outside the platform, works faster than the platform's system, but requires a clear clause in the rental agreement
• A host's liability insurance usually covers damage caused to third parties, not damage to your own furnishings caused by a guest, that's a common misunderstanding

Documentation before arrival: the foundation of every claim

Without proof of the apartment's condition before a stay, it's hard to prove a given piece of damage happened during that specific guest's reservation. It's worth building the habit of:

• Photos of key furnishings (sofa, TV, bed, appliances) taken after every cleaning, before the next check-in
• A short note from the cleaner or host about the apartment's condition, especially after longer stays or larger groups
• Keeping photos organised in a dated archive, so you can quickly compare before-and-after for a specific reservation

AirCover and platform protection systems: what they actually cover

Airbnb offers hosts an AirCover program with protection against damage caused by guests, up to a set monetary cap. Using it requires reporting the damage within a set window after the stay ends (usually up to 14 days), along with photo documentation and, where possible, a repair or replacement quote.

Booking.com has similar protection mechanisms for partners, though the scope and caps vary by account type and region, it's worth checking the current terms directly in the partner panel before the season, not only when you first need to file a claim.

A deposit collected directly by the host

An alternative or supplement to the platform's system is a deposit collected directly by the host, outside the Airbnb or Booking.com mechanism, for example as a card pre-authorisation or a refundable transfer after the stay. This model works faster than filing through the platform, but requires:

• A clear clause in the house rules and rental agreement about the deposit amount and the conditions for withholding it
• The guest's consent obtained before arrival, not improvised after damage is discovered
• A precisely stated deadline for returning the deposit if no damage occurred

What your liability insurance covers, and what it doesn't

This is one of the more common misunderstandings about insurance coverage. A host's standard liability insurance for short-term rental usually covers damage caused to third parties by a defect in the property itself (e.g. a guest slipped on a wet floor because of a faulty installation), not damage to furnishings caused by the guest themselves.

Damage caused by a guest is better addressed by a separate policy (e.g. all-risk property insurance with a recourse option) or by the booking platform's own protection system, or by a directly collected deposit. It's worth checking this with your insurer before the season, not after the first major claim.

Step by step: what to do right after discovering damage

1. Photos of the damage from several angles, ideally with visible context of the room
2. Contact the guest asking for an explanation before immediately escalating to the platform, some situations resolve amicably
3. A repair or replacement quote (receipt, a service offer, a link to an identical product in a shop)
4. Filing a claim through the platform's protection system within the deadline, with full documentation attached from the start

Frequently Asked Questions (FAQ)

How much time do I have to report damage after a guest leaves?

It depends on the platform, Airbnb usually requires reporting within 14 days of the guest's checkout. It's worth checking the current deadline in the AirCover terms, as the rules do get updated.

Can I require a deposit if I only take bookings through Airbnb?

Airbnb limits the ability to collect an additional deposit outside the platform for reservations made through Airbnb, in that case a host relies mainly on the AirCover system, unless the platform's terms allow otherwise in a given region.

What if the guest refuses to pay for the damage and goes silent?

In that situation the host files a claim through the platform's protection system with full documentation. For bookings outside the platform, when contact with the guest breaks off, the remaining option is the civil route, a demand for payment and, as a last resort, a lawsuit, which involves extra time and cost.

Is it worth insuring the apartment's furnishings separately from the building insurance?

Yes, it's worth considering a separate policy for contents (furniture, appliances, electronics) with a clause covering short-term rental use, standard home insurance for personal use often excludes risks tied to commercial rental activity.