TL;DR Booking.com offers three damage protection options: damage deposits (you manage it yourself), the damage programme (guest agrees to pay via platform), or Host Property Insurance (US-only, $1M coverage backed by Generali). Host Property Insurance is the strongest option if you’re eligible, but it only covers Booking.com reservations and excludes unauthorized parties. No platform damage policy covers everything – you’ll have gaps if you list on multiple platforms, take direct bookings, or need protection against party guests. Most hosts layer platform coverage with third-party protection to cover all channels.
A stained carpet, a broken fixture, a guest who leaves the place worse than they found it — it’s not a matter of if, but when damage happens. How well you’re covered is what separates a minor inconvenience from a serious financial hit.
If you list on Booking.com, understanding the platform’s damage policy is a must. Depending on where your properties are based, you have up to three options: a damage deposit, the damage programme, or Host Property Insurance. Each works differently, and each comes with its own trade-offs.
In this article, we’ll break down how the Booking.com damage policy works for each option, how it stacks up against Airbnb’s AirCover, and what to consider if you need protection beyond what the platform offers.
Running a short-term rental: why damage protection matters
Unfortunately, accidents do happen, as well as occasional malicious guests. How you manage this risk is a key factor in whether your short-term rental business will be successful.
Platforms like Booking.com and Airbnb all have built in damage policies, which is essentially an agreement between you (or your guest) and the platform. The idea is that the guest or the platform itself will cover the cost of property damage, but the reality is many hosts find it difficult to get a payout.
Platform damage policies can work differently too, for example, Airbnb doesn’t allow mosts hosts to request a damage deposits. Booking.com does permit damage deposits, but there are pros and cons as you’ll see below. Whenever you list your property on a new platform, it’s worth understanding how its damage policy works, the pros and cons, and whether you need additional short-term rental insurance.
What is the Booking.com damage policy?
When you take reservations through Booking.com, you get three damage protection options:
- Damage deposit
- Damage program
- Host Property Insurance (US, Puerto Rico, US Virgin Islands only)
Booking.com damage deposit
Booking.com allows you to collect a damage deposit from guests before their stay. If your guest causes damage, you keep all or part of the deposit to cover the cost. If everything’s fine, you return the full deposit.
With damage deposits, you manage the entire process yourself. You decide how much to collect, how to collect it, and handle any disputes that come up. This method puts you in control, so you don’t have to depend on an insurance provider to decide if your claim is valid.
Make sure you’re transparent about your deposit upfront and don’t try and collect one unexpectedly after the booking. Otherwise, your guest may suspect a scam and report you to the platform.
You can easily set your deposit amount for each listing in the ‘Property policies’ area on Booking.com. But there are downsides. Firstly, deposits are generally set around $100-500 USD depending on your property value, but that doesn’t always cover the full cost of damages. You may need third-party damage protection to protect your investment from significant expenses caused by intentional or accidental guest damages.
Secondly, some guests might not choose your property at all. If you have a high value property attracting affluent guests or business travellers, a damage deposit is unlikely to deter bookings. However, backpackers, students, and families may travel on a budget and avoid properties with higher upfront fees.
Booking.com damage program
Alternatively, you can request payment for damages directly via the Booking.com platform. Unlike a deposit, the guest pays nothing upfront.
If damage occurs, you have 14 days after the guest checks out to submit a damage payment request through the extranet. You’ll need to describe the damage, attach clear photos, and include any invoices. Booking.com will then reach out to the guest and handle the transfer of funds — but only if your guest agrees to pay.
The damage program is more hands-off than managing a deposit yourself, but payment isn’t guaranteed. If a guest refuses to pay, or simply doesn’t respond, you won’t receive anything. And even once a request is approved, payment can take up to 30 days. You’ll definitely need another form of cover for times when the guest refuses to pay.
Host Property Insurance
If you have properties in the US, Puerto Rico, or US Virgin Islands listed on Booking.com, you’ll automatically be covered by Host Property Insurance. The plan provides up to $1 million in coverage for guest damages, including:
- Damage to your property and all its contents, e.g. furniture, flooring, or art
- Damage to on-site vehicles and watercraft
- Damage caused by guest’s pets
- Excess cleaning costs
- Lost or stolen items
- Income loss protection i.e. cancelled bookings caused by covered damage
If something goes wrong, you file a claim through Booking.com, selecting the relevant reservation and submitting all the details and evidence you’ve collected. Generali, the insurance partner, handles your claim and you’ll get an outcome within five business days.
Just bear in mind that Host Property Insurance only applies to reservations made on Booking.com. It doesn’t cover damages caused by general wear and tear, natural disasters, or unauthorized parties.
How does this benefit hosts?
Now that Booking.com offers insurance, hosts in the US don’t have to rely on damage deposits. That means you could get a bigger payout that actually covers the cost of damages. Plus, you don’t have to take on the admin of requesting deposits or the stress of guest disputes over withheld funds.
However, Host Property Insurance doesn’t cover damage caused by unauthorized parties or damage to certain items such as musical instruments or legal documents. Make sure you know exactly what’s covered so you can take steps to protect your home even further.
Finally, remember that you’re only covered for bookings secured on Booking.com. If you list on other platforms or take direct bookings, you need alternative protection.
Booking.com damage policy vs Airbnb’s AirCover
Each online travel agency has their own damage policy, with key differences that could impact how you run your business. For example, Vrbo offers vacation rental damage waivers while Airbnb recommends hosts use AirCover, its own damage protection program, instead of collecting deposits.
As two of the biggest booking platforms in the game, here’s how Booking.com’s damage policy compares to Airbnb’s AirCover:
| Host Guarantee (AirCover) | Host Property Insurance | |
|---|---|---|
| Eligibility | All hosts globally | Only in US, Puerto Rico, and US Virgin Islands |
| Cost to hosts | Free | Free |
| Coverage | Up to $3M | Up to $1M |
| Provider | Airbnb | Generali |
| Damage covered | Damage to property, furnishings, belongings, and vehicles caused by guests, their invitees or pets | Damage to property, furnishings, vehicles, and fine art caused by guests or their pets |
| Income loss covered | Yes, when bookings are cancelled due to guest damage | Yes, up to 3 months, when bookings are cancelled due to guest damage |
| Not included | Damage caused by wear and tear or natural disasters. Loss of currency or regular cleaning costs. | Damage to musical instruments, jewelry, or personal documents. Damage caused by wear and tear, natural disasters, or unauthorized parties. |
| Insurance | No | Yes |
| Claim window | 14 days after checkout | As soon as possible |
| Payout timeline | ~2 weeks | Within 5 business days |
| Who pays? | If the guest refuses to pay, hosts can submit a reimbursement request to Airbnb | Generali |
The biggest differences between Airbnb and Booking.com’s damage policies are:
- AirCover includes up to $3 million in damage protection, while Host Property Insurance covers up to $1 million.
- AirCover applies to all hosts, regardless of location. Host Property Insurance only applies to properties in the US, Puerto Rico, and US Virgin Islands.
- Because of AirCover, Airbnb security deposits are actively discouraged for most hosts. However Booking.com allows all hosts to collect deposits so long as it’s transparent in their listing fees.
- Unlike Booking.com, Airbnb doesn’t actually offer insurance. Insurance is a regulated financial product, which means the provider is bound by a legal commitment to pay out on valid claims. It’s down to Airbnb’s discretion whether they support hosts with damage claims.
According to Airbnb’s damage policy, you’re expected to contact your guest via the platform to request payment for damages. If the guest doesn’t respond within 24hrs, you can submit a claim to AirCover. But it’s totally up to Airbnb whether it chooses to reimburse you for the cost of damages.
One host recalls a time they discovered significant floor damage caused by a guest’s anxious dog. The guest also threw bags of trash towards the river at the back of the property, instead of disposing of it as requested:
“I followed [Airbnb’s] instructions in good faith. I provided all photos, professional repair invoices and explanations,” shares Teo Sikharulidze on a Facebook group for professional hosts. “After dragging this out for 2 week and making me lose critical time for a police report, they just informed me they will NOT cover the floor restoration!”
Third-party damage protection
When you start comparing the different damage policies on all your platforms, you realise none of them tick all the boxes. And, since every policy is slightly different, there’s no way to get consistent cover on all reservations, especially if you take direct bookings via your own website.
It’s worth considering whether you need third-party damage protection through a service like Truvi. Remember how Booking.com won’t have you covered for unauthorized parties or bookings secured through another platform?
With Truvi, damage protection is included for every booking that goes through guest screening. Not only are you protected across all channels, but you’ll actually filter out problem guests before they even arrive. We can confidently include damage protection for unauthorized parties in our plan, because we know how unlikely they are when you screen out certain guests.
The verdict on the Booking.com damage policy
No platform damage policy is going to cover everything. Booking.com’s Host Property Insurance is a solid starting point for US-based hosts, with up to $1 million in coverage and a guaranteed payout backed by a regulated insurer. But whether you’re relying on a damage deposit, the damage programme, or HPI, there are gaps. Unauthorized parties, bookings from other platforms, and direct reservations all fall outside Booking.com’s protection.
The most resilient hosts don’t rely on a single layer of protection. They understand what their platform covers, know where the gaps are, and have a plan for when things fall through the cracks. If you list across multiple platforms or take direct bookings, it’s worth looking at third-party options like Truvi to make sure you’re covered wherever your bookings come from.
Not fully covered by your platform’s damage policy?
Truvi protects your properties across all booking channels — with up to $1M in damage protection and guest screening built in, so you’re not left chasing payouts when something goes wrong.
