Airbnb Makes Good, Will Now Cover Up To $1M In Property Damages

As people become increasingly comfortable using web platforms to swap homes, cars, and everything in between, some have said that collaborative consumption movement has the potential to be as profound as the industrial revolution. But, before that can happen, platforms that deal in collaborative consumption have to do more to ensure consumer protection, a lesson Airbnb learned the hard way last year.

After a user’s home was trashed last summer (and a slew of bad press followed), Airbnb apologized and offered a $50,000 guarantee against damages to hosts. Today, the community marketplace is going one giant step further, announcing that it will now be offering its hosts a $1 million guarantee.

Partnering with insurance giant Lloyd’s of London, Airbnb’s new insurance policy now covers up to $1 million in property damage that results from an Airbnb booking. As it would seem, this is a fairly unprecedented move for the industry, and a very important one given how Airbnb acts as the mediator between two parties moving their online relationships into the real world. Nothing is more imperative than the trust of that relationship, and Airbnb’s move to renew its commitment to expanding its safeguards goes a long way towards securing that dynamic.

Check out the new guarantee here.