It’s the middle of the night and you’re wide awake. Coffee in hand. Table covered in documents. You stare at a whiteboard full of arrows and timelines with the breakdown Who, What, Where, but sadly no Why. You’re building a case, and the proof has to be exhaustive and perfectly verified.
Questions race through your head. “How many flushes did it take before the chopsticks finally went down?” “Would you have to put your hand in the toilet to get them lodged that deep?”
This is no courtroom drama, this is an Airbnb AirCover claim. Earlier that day you learned a guest’s son had ran an experiment to see if chopsticks could be flushed down the toilet. With a $900 plumbing bill on your credit card and a guest unwilling to pay for the damage, you’re left navigating the AirCover claims process. During this process you find out what many hosts eventually learn: Airbnb is not your friend.
Never again, you promise yourself. You need real protection, and AirCover ain’t it. So what’s the move? Security deposits? Damage waivers? Something else entirely? Let’s break it down.
Damages Are the Cost of Doing Business
If you host long enough, you stop asking if things will break and start budgeting for when.
- Sheets get stained
- Glassware chips
- Coffee makers lose oddly specific parts
Minor damage is part of the game. And if your goal is to create a smooth hotel-like experience, you don’t chase guests down over a wine stain. Hotels don’t, and neither should you.
But major damage? That’s where things get expensive… and where most hosts realize too late: Their “protection” isn’t actually protection.
Airbnb AirCover is Not Insurance
On paper, Airbnb’s AirCover sounds great. Up to $3 million in damage protection? Sign me up.
In reality, this process generally results in a slow, documentation heavy claim process and a high likelihood of claim denial.
The worst part: Airbnb often goes directly to your guest to collect the payment.
Now you’re not just dealing with property damage, you’re also damaging the guest relationship. That “5-star repeat guest” is gone and replaced with a review calling you a scammer.
That’s not protection. That’s friction.
What is a Damage Waiver and What Does It Cover?
A damage waiver is a small, non-refundable fee guests pay during the booking process that covers accidental damage during their stay. The fee can range anywhere from $30-150 depending on the size of the property, and can cover anywhere from $1,500-$10,000 in damage.
What Damage Waivers Typically Cover
- Furniture or amenity damage
- Broken TVs and electronics
- Stained carpets
- Damaged walls, windows or infrastructure
- Theft (must submit a police report)
Key Advantage: No Guest Conflict
- Guests are not involved in claims
- You don’t chase anyone for money
- The process is fast and host-focused
Translation: You stay the good guy.
Why Damage Waivers Are a Win For Guest Experience
Most hosts think this is about protection, but that’s just part of it. It’s also about experience. And experience is always something your vacation rental manager should be thinking about.
Security Deposits Say: “We don’t trust you.”
Damage Waivers Say: “Relax, you’re covered.”
That subtle shift is the difference between a transactional stay and a premium, repeatable experience. If your brand is elevated, your protection model should be too.
The Hidden Downsides of Security Deposits
On the surface security deposits seem simple, but they’re really anything but.
Let’s start with the first problem: operational headaches. Collecting funds, refunding funds, and answering guest questions about the deposit adds friction at every stage of the booking process. It may seem minor at first, but over time those touch-points compound into real time and effort.
Then there’s the issue of limited protection. Security deposits are typically 10–20% of the total booking cost. While that might sound reasonable, it quickly falls apart in practice, especially for shorter stays. A $50 deposit won’t come close to covering a $2,000 problem.
And finally, there’s the hidden cost most hosts overlook. If you’re using payment processors like Stripe, you’re paying fees when you collect the deposit, and again when you refund it.
So now you’re taking on risk, adding operational complexity, and paying out of pocket just to feel protected.
Not exactly a winning formula.
What I Use Now (And Recommend to Every Serious Host)
After learning the hard way, I started using a damage waiver system powered by Waivo. And there’s no going back.
What Changed Immediately:
- I stopped paying out of pocket for constant replacements
- Claims became simple, fast, and predictable
- Guest communication improved overnight
But the biggest shift? Peace of mind.
Say goodbye to awkward messages about missing grill brushes or chasing guests for reimbursements. And no more rolling the dice with AirCover and hoping it works out. Because hope isn’t a strategy.
Hi, I’m Sara. 👋🏻
I’m Sara Vander Horn, a former film industry line producer turned hospitality manager.
I started Mosaic Getaways with one property and quickly discovered what
most hosts eventually learn: great stays are rarely about big things,
they’re about the small details owners don’t realize matter yet.
I’ve seen firsthand which decisions protect a home, elevate the guest experience, and create long-term success for owners.
I share those lessons to help property owners understand what actually matters in short-term rental management, so they can avoid common mistakes and care for their homes with confidence.