AirCover vs. Proper vs. Safely vs. Vrbo: Where each actually pays out

AirCover is the largest-scale platform protection program in short-term rentals, with a $3 million coverage cap and no per-host cost. It is also the product most commonly misunderstood. The Host Damage Protection Terms explicitly state that AirCover is not insurance. Airbnb handles claims on a discretionary basis, meaning they can deny or reduce any claim at their internal judgment. When Airbnb pays, they pay Actual Cash Value, which deducts depreciation based on the item's age. Our companion piece on how Airbnb calculates damage payouts walks through the exact formula and category rates.

Avada Properties' analysis of 20,000-plus Smoky Mountain bookings found that Airbnb hosts recover an average of 56.75 percent of the amounts they claim. That number includes denied claims and partial denials. For an operator at scale, AirCover is the correct floor but should not be treated as comprehensive protection, especially for furniture past year 3 or for any scenario involving intentional damage.

Vrbo damage protection is structurally different from AirCover. It is actual insurance underwritten by Generali Global Assistance, purchased by the guest at booking in one of three tiers ($59 / $89 / $119 covering $1,500 / $3,000 / $5,000 respectively). Because it is insurance, claims have legal weight and adjusters are obligated to pay valid losses. That is why Vrbo's average recovery rate is higher than Airbnb's at 68.29 percent.

The problem is the $5,000 cap. A single sofa, a mattress, and some electronics in a party damage scenario can exhaust the top tier. More critically, Vrbo damage protection explicitly excludes intentional damage and vandalism. For party-prone properties or premium listings, this is a fatal coverage gap. One real case on the BiggerPockets forums: a host with $6,000 in documented party damage (blood, broken windows, destruction) would have received $0 under Vrbo's program because the damage was intentional. The host ultimately recovered through Airbnb AirCover instead.

Proper Insurance is the most comprehensive third-party STR-specific policy in the market. Its key differentiators are threefold. First, replacement cost valuation: Proper pays new-for-old on both buildings and contents, meaning no depreciation deduction. Second, no sub-limit on guest damage: where platform programs cap guest-caused damage at a specific dollar amount, Proper treats guest damage as a fully covered peril under the main policy. Third, explicit coverage for intentional and malicious damage by guests, which is typically excluded from both Vrbo protection and standard homeowner/landlord policies.

Proper uses a "special form all-risk" coverage structure, meaning every peril is covered unless specifically excluded in the policy. This is the inverse of how most insurance operates (which uses "named peril" structure) and is a meaningful advantage for STR operators dealing with unusual damage scenarios. Pricing is based on an annual policy, which means the math favors properties booking more than ~50 nights per year.

Safely operates on a different pricing model than Proper. Instead of an annual policy, Safely charges per-booking, which makes it attractive to operators who want to avoid fixed insurance costs or who manage a mix of owner-direct and platform bookings. Base content coverage is $10,000 per booking with higher limits available for luxury properties, and the policy includes $1 million in homeowner and property manager liability coverage for guest injuries.

Safely's positioning is similar to Proper on the coverage side, with both offering replacement cost valuation and covering scenarios that platform programs exclude. Safely's distinguishing features are the per-booking pricing model (easier to pass through to guests as a damage waiver fee), integrated guest verification as part of the product, and explicit coverage for pet-caused damage even on pet-friendly listings. For property managers running 100+ units across multiple owners, the per-booking model simplifies accounting and allows the cost to flow through to the guest or owner as a line item.