Platform Protection Plans vs. Real Insurance: What Every Host Should Know

Short-term rental platforms like Airbnb, Vrbo, and HomeAway have made it easier than ever to earn income from your property. But here’s the hard truth: while these platforms offer some level of host protection, none of their programs replace a proper insurance policy.

In fact, relying solely on them can leave you exposed to property damage, lawsuits, and income loss—the kind of stuff that can sink your rental business in one weekend.

Let’s break it down.

What Platforms Offer (And Don’t)

Airbnb Host Protection Insurance & Host Guarantee

• Liability coverage: Up to $1 million (per occurrence)
• Property damage: Up to $1 million (but not guaranteed and NOT insurance)
• Exclusions: Mold, pets, fine art, ordinary wear and tear, intentional acts, lost income, certain injuries

Airbnb’s protection is secondary to your personal policy—meaning they expect you to go through your own carrier first. It also only applies to bookings made through Airbnb. If you’re double-listing (like on Vrbo), coverage is null for non-Airbnb guests.

Vrbo/HomeAway Liability Insurance & Damage Protection

• $1M liability coverage for third-party claims (e.g., guest injury)
• Damage protection: Optional, typically paid for by the guest (e.g., a $59 fee covers up to $1,500 in damages)
• Exclusions: Most property damage is covered only if the guest purchases the plan—and files a claim

Like Airbnb, Vrbo’s liability plan only covers what happens during a Vrbo booking. Any damage or incident outside that specific reservation window? Not covered.

So What’s Missing?

While these platform protections sound nice in marketing, here’s where they often fall short:

Real-World Scenario

Host A lists on Airbnb and relies solely on Airbnb’s built-in coverage. A guest falls off the backyard deck due to a broken railing. The guest sues. Airbnb’s legal team gets involved… but denies coverage due to “negligence” on the host’s part.

Host B works with a local Florida agency (hi, that’s us) and has a true vacation rental policy. The same incident occurs. Their policy kicks in, covers medical expenses, defense costs, and even covers missed rental income while repairs are made.

Host A ends up in court. Host B stays in business.

Why You Still Need a Dedicated Insurance Policy

Whether you rent occasionally or run multiple properties, here’s why having a proper vacation rental or commercial policy matters:

✅ Covers guest-caused property damage—without loopholes
✅ Protects against liability claims, even if they don’t book through Airbnb/Vrbo
✅ Includes business income protection if your property becomes uninhabitable
✅ Complies with local Florida ordinances (some counties require proof of insurance—not platform coverage)

The Marcus Group Advantage

We specialize in helping Florida property owners protect their vacation rentals the right way—with real coverage, not marketing fluff.

• We know Florida’s evolving short-term rental laws.
• We work with multiple carriers to find the best fit for your property.
• We’ll make sure your policy is tailored to the way you actually operate—whether it’s part-time, seasonal, or a full-time rental business.

Ready to Ditch the “Hope It Covers” Approach?

If you rent it, insure it right. Don’t leave your biggest investment in the hands of vague platform protections.

Call The Marcus Group at (954) 721-1180 or message us for a custom vacation rental policy review. We’ll help you stay protected, profitable, and legally compliant—no matter where your next guest comes from.