AirCover vs. security deposit — which actually protects me?
Airbnb removed traditional host security deposits from its platform and replaced them with AirCover for Hosts, which reimburses eligible damage up to its published policy limit after the guest declines or ignores your reimbursement request. VRBO still offers refundable damage deposits as a host-set option. In practice: AirCover has higher coverage but slower payouts and a higher evidence burden. Deposits (on VRBO or via third-party tools like Superhog, Safely, or Waivo) pay out faster with lower limits. Most serious hosts run both — a deposit for fast small recoveries and AirCover or third-party insurance for major losses.
The core tradeoff
Insurance model
High coverage limit. No host action needed to "enable" it per reservation. Pays out only after a claim review with submitted evidence.
- Up to $3M damage protection
- Included by default on Airbnb stays
- Evidence-dependent
- Payout: 1–6 weeks
- Covers large losses
Collateral model
Held from guest's payment method or via a third-party service. Host can deduct within the platform's rules. Smaller amount, faster access.
- Typically $100–$2,000
- Not available on Airbnb (removed)
- Available on VRBO and third-party tools
- Payout: hours to days
- Covers small–medium losses
Side-by-side comparison
| Dimension | AirCover for Hosts | VRBO damage deposit | Third-party (Superhog, Safely, Waivo) |
|---|---|---|---|
| Coverage limit | Up to $3M | Host-set, typically $100–$2,000 | Varies; often $1,500–$10,000+ |
| Who pays upfront | No deposit; Airbnb covers claim | Guest card held or charged | Guest pays small fee or host pays per stay |
| Payout speed | 1–6 weeks after claim | Hours to days | 1–14 days |
| Evidence burden | High | Moderate | Moderate |
| Guest refusal blocks payout | No (Airbnb decides) | Yes (Resolution Center if disputed) | No (insurer decides) |
| Covers lost income | No (most cases) | No | Sometimes |
| Covers wear and tear | No | No | No |
| Works on Airbnb stays | Yes | No | Some providers yes |
| Works on direct bookings | No | No | Yes |
| Requires pre-stay photos | Effectively yes | Recommended | Recommended |
When each actually protects you
For serious damage on Airbnb stays — especially over $1,000.
AirCover's $3M limit is the only realistic protection for major incidents: furniture destruction, appliance damage, smoke remediation, theft of high-value items. The evidence burden is high but the ceiling is also high. This is where the 14-day clock and room-by-room pre-stay documentation matter most.
For fast recovery of small-to-medium damage on VRBO stays.
Set a refundable damage deposit between $200 and $2,000 depending on property value. Broken dishes, stained linens, small repairs — you can deduct and refund the balance without opening a formal claim process. For damage above the deposit, file through VRBO's Resolution Center.
For direct bookings, or as a backstop for Airbnb's coverage gaps.
Superhog, Safely, Waivo, and similar providers sit between host and guest. They verify the guest, collect a damage waiver fee or hold, and pay out faster than platform claims. Especially valuable for direct-booking channels and for hosts who have been burned by AirCover denials on excluded categories.
The serious-host configuration: platform coverage plus third-party protection.
Experienced hosts usually run AirCover (automatic on Airbnb), VRBO damage deposits (on VRBO listings), and a third-party short-term rental insurance policy (Proper, Steadily, etc.) for blocked-night income and liability. The goal isn't any one tool covering everything — it's overlapping coverage with no single point of failure.
Where each one fails
- AirCover fails when you don't have pre-stay documentation. The $3M limit is theoretical if you can't prove the item was intact before this guest. This is the single biggest failure mode.
- AirCover fails on excluded categories. Blocked-night income, cash, securities, some pet-related damage, acts of nature. The loss is real; AirCover doesn't cover it.
- Security deposits fail when the damage exceeds the hold. A $500 deposit doesn't protect against $3,000 of damage. For anything above the deposit, you're back in the claim process.
- Security deposits fail when guests dispute the deduction. Platforms will reverse deductions if the guest pushes back and evidence is weak. The "instant" part evaporates.
- Third-party protection fails when the provider denies the claim. These are insurance companies. They decline claims for the same reasons AirCover does: insufficient evidence, excluded loss types, late reporting.
- All three fail when you can't prove guest attribution. No coverage — platform, deposit, or insurance — pays out on damage that could plausibly be pre-existing or from another guest.
Frequently asked questions
Can I still charge a security deposit on Airbnb?
Not through the platform. Airbnb removed host-set security deposits in 2021 and replaced them with AirCover for Hosts. Asking guests to pay a deposit off-platform (via Venmo, cash on arrival, wire transfer) is restricted by Airbnb's terms of service and can result in listing penalties. The supported path on Airbnb is AirCover plus third-party insurance, not an off-platform deposit.
Does VRBO's damage deposit cover more than Airbnb's AirCover?
No. VRBO damage deposits are typically $100–$2,000 — far below AirCover's $3M limit. The deposit is faster and simpler for small claims, but AirCover's ceiling is much higher. Most VRBO hosts pair a deposit with Vrbo Damage Protection insurance for larger losses.
What do Superhog, Safely, and Waivo actually do?
They verify the guest (ID check, screening), collect either a guest-paid damage waiver or a host-paid per-stay fee, and handle damage claims as an insurance layer. They pay out faster than platform claims and work across Airbnb, VRBO, and direct bookings. Fees vary from a few dollars per night to a percentage of the booking, passed to guest or absorbed by host.
Does AirCover cover me for damage on a direct booking if the guest found me through Airbnb first?
No. AirCover only covers stays booked and paid for through Airbnb. A direct booking, even with a guest who originally discovered your listing on Airbnb, falls outside AirCover entirely. This is one of the biggest reasons hosts layer third-party insurance for direct channels.
If I accept damage through the Resolution Center from the guest, can I still file with AirCover?
Only for the remainder. If the guest pays $500 toward $2,000 in damage, you can escalate the uncovered $1,500 to AirCover. Document the partial payment in the same Resolution Center thread so reviewers can see the offset.
Should I add short-term rental insurance on top of AirCover and deposits?
If the property is a meaningful part of your income, yes. Standalone STR policies (Proper, Steadily, Safely as a policy, not just a damage service) cover categories AirCover doesn't: liability beyond the AirCover liability limit, blocked-night income loss, building and contents coverage when the unit is vacant, and property outside the guest's stay window. For single-property hosts, this is the last layer. For multi-property operators, it's usually not optional.
Every one of these protections pays out faster with pre-stay documentation.
Rental Inspection Report captures the room-by-room turnover report that AirCover reviewers, VRBO Resolution Center, and third-party insurers all rely on to confirm guest attribution. One workflow, same evidence bundle, regardless of which coverage you're claiming under.