An Airbnb Nightmare Come True: What if this was your property?

A family in Calgary, Alberta, Canada, found their Airbnb vacation rental property completely trashed by four house guests who threw a post-wedding bash at the home, resulting in more than $50,000 in damage.

An unprecedented level of intentional damage was done to the home, as the partygoers defaced the property owner’s artwork, blocked up plumbing, and destroyed furniture. With more than 100 people allegedly in attendance at this party, the short-term rental owner will be lucky if a lawsuit doesn’t crop up with one of the partygoers.

What if this were your property? Would you be prepared to face extensive damage? What about the emotional impact of the damages? How can you prepare for the worst?

This article explains some precautions to help protect yourself and your investment in the rental property. Essentially, screen your guests, read guest reviews, and ask for a security deposit. Also, make sure you have commercial liability insurance to protect your property.

The Airbnb Host Protection might cover up to $1 million in property damage, and if any lawsuits were to be filed, that money would be quickly consumed in court costs and attorneys’ fees. You also only have a 72-hour window to file a claim with Host Protection, which doesn’t give you much time, especially if you’re not in town to see the damages for yourself.

Commercial insurance for your short-term rental will be your safety net that provides coverage for guest-caused damage, particularly if you aren’t solely using Airbnb to list your property.

A bar in the basement of a house.

Peace of Mind Delivered to Your Inbox

In an industry that keeps you busy enough, our monthly newsletter makes staying informed effortless. Get the latest on emerging trends, real short-term rental risks, and regulatory changes.

"*" indicates required fields

About the Author

Proper Insurance

Proper Insurance is the nation's leading short-term vacation rental insurance provider, with the most comprehensive policy on the market. We protect homes in all 50 states with unmatched coverage for your property, revenue, and business liability, customized to include guest-caused theft/damage, liquor liability, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.

More
Resources

A short-term rental house with coins, a calculator,and graphs to depict tax write-offs
March 27th, 2025

Maximizing Airbnb Tax Write-Offs: What You Can Deduct on a Vacation Rental Property

Illustrated interior of cozy Airbnb Cottage with bright colors and natural light
March 20th, 2025

How to Prepare Your Home for the Short-Term Rental Market: A Complete Guide 

a man exhibits signs of legionnaires disease from a short-term rental hot tub, one cost of avoiding to effectively prevent legionnaires' disease in Airbnb hot tubs
February 28th, 2025

6 Ways to Prevent Legionnaires’ Disease in Short-Term Rental Hot Tubs | Safety Guide

Blue and yellow chairs sit outside of a vacation rental home with amenities that come with risks, including a fire pit, kayaks, and a body of water, begging the question "Does Homeowners insurance cover vacation rentals?"
February 12th, 2025

Does Homeowners Insurance Cover Vacation Rental Properties?