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Short-Term Rental Losses

Guests at an Airbnb, Vrbo, or other short-term rental start kitchen fires, leave water running, throw parties, and damage the home. The guest is not your insured, so there is usually a recovery. The hard part is getting the guest's real name and insurance, and working around the platform's own damage program.

What it coversAirbnb and Vrbo guests, AirCover deadlines, no double payment, cleaners

Step-by-step checklist

Identify

Contact the claim adjuster right away. Ask them to hold the scene and for permission to retain an expert at the client's expense. Note the call in the file.
On every claim, ask the client whether they want an origin and cause investigator to review the scene, or confirm one is already assigned. Note their answer in the file so the decision is on record.
Make sure no evidence is touched or moved until the expert has secured the scene
Get the client's approval for the scene exam cost. Most run at least $1,600 with travel, the day rate, and expenses.
Get the booking record: guest name, dates, number of guests, and booking number
Ask if the host already filed with the platform, and when
Check if a cleaner, property manager, or contractor was the last one inside

Hands off until the expert arrives. Nothing at the scene gets touched, moved, repaired, or thrown out until the origin and cause investigator has secured it. Evidence that's moved early can sink the whole recovery.

Notify

Help the host report it to the platform right away. Deadlines are short.
Notify the guest and ask for their homeowner's or renter's insurance
Notify any property manager or cleaning company

Investigate

Get the platform messages between the host and the guest
Get door lock codes, noise monitor alerts, and outdoor camera video
Get the fire or police report, if there is one

Demand, negotiate, and settle

Send the demand packet
Follow up, then send the second demand if needed
Review the release, pay the deductible, and close

1. Identify

How these losses happen

Guest cooking fires and grill fires
Tubs, sinks, or hoses left running
Parties that damage the home, or more guests than the booking allowed
Candles, smoking, or fire pits left burning
A cleaner or property manager who leaves something on or skips a check

Airbnb AirCover for Hosts: covers guest damage up to $3 million per booking. The host must report it within 14 days of checkout or before the next guest checks in, whichever comes first. The host must first ask the guest for payment through the Resolution Center. Airbnb says it is not insurance.

Why this matters to you: your insured may be paid by the platform and by you for the same loss. Ask the host for everything the platform paid, and do not pay twice. Also check your policy for home-sharing exclusions. That is a coverage question to settle before you subrogate.

Is there anyone to recover from?

What you find	Who may be responsible
The guest or their party caused it	The guest, through their homeowner's or renter's policy
More guests than booked, or a party that was banned	The guest who booked it
A cleaner or property manager left something on	That company
An appliance or part failed	The maker, or the contractor who installed it
The host caused it	Usually no recovery

2. Notify and investigate

Evidence checklist

Booking record with the guest's name, dates, and number of guests
Platform messages, house rules, and the listing
Platform claim number, what was requested, and what was paid
Door lock logs, noise monitor alerts, and outdoor camera video
Photos taken at the last clean before the guest arrived
Fire, police, or noise complaint reports
Property manager or cleaning company agreement
Mitigation records showing the moisture readings, for water losses

3. Demand, negotiate, and settle

Liability theories: negligence, breach of the rental agreement and house rules, and negligence of the property manager or cleaner.

Defenses to expect

Defense	How to answer it
The platform already paid	Get the payment record. Only ask for what the platform did not pay.
The guest's name on the booking is not who stayed	The person who booked agreed to the house rules for the whole group
The home was already damaged	Use the last cleaning photos and the check-in messages
The guest's policy excludes rented property	Many renter's and homeowner's policies still cover liability for damage the guest causes. Ask for the policy.

4. Letters for this loss

Step	Letter
Identify	Subrogation Opening Letter to Insured
Notify	Notice of Subrogation Interest and Insurance Request, to Adverse Carrier
Investigate	Evidence Preservation and Joint Scene Exam Notice
Demand	Subrogation Demand to Adverse Carrier
Negotiate	Second Demand with Escalation Notice
Settle	Release Review Checklist, Closing Letter, Pro Rata

Related guides: Grill Fires, HOA Rules, and Tenant Negligence; Water Left Running in Vacant Homes; and Pet Losses: Bites and Stove Fires.