San Diego STR Insurance – Proven Airbnb Damage Protection 2025
STR Insurance Deep Dive: Why Your Homeowner’s Policy Won’t Cover Airbnb Damage (And What Will)
In San Diego, most homeowner’s policies exclude short-term rental (STR) activity, so Airbnb damage and guest injury claims are routinely denied. AirCover helps but has limits, strict timelines, and evidence requirements. The fix is a layered approach: a dedicated STR policy, rigorous guest screening, and professional claims handling. OODA Management implements all three for coastal and urban rentals across the county.
Why this matters: One guest injury lawsuit or a fire during Comic-Con week can erase years of profit. San Diego’s STR ordinance, seasonal surges (summer peak), and high guest turnover in Mission Beach, Pacific Beach, La Jolla, Del Mar, Downtown, and North County amplify risk. We combine specialized STR insurance, AirCover claims expertise, and Truvy verification to reduce incident frequency and recover damages quickly. Owners get protection without the busywork—paired with our full-service management that also targets revenue growth during events and weekends.
Key Takeaways
- 90% of homeowner policies exclude STR; relying on them in San Diego puts you at substantial financial risk.
- OODA’s AirCover approvals average 80%+ across 120+ claims since 2022, with $124,000+ recovered for owners.
- Truvy screening cut damage incidents by 67% across OODA’s portfolio—zero parties since implementation.
- Dedicated STR coverage in San Diego typically costs $1,400–$3,500/year depending on asset value and location.
- Our management fee is 7%, and dynamic pricing can deliver up to a 35% revenue increase during peak seasons and events.
Why won’t my homeowner’s insurance cover Airbnb damage in San Diego?
Because renting for profit triggers a “commercial activity” exclusion in most homeowner policies. That means guest-caused damage, guest injuries, and business interruption are usually denied. Even rental riders often require 30+ day stays, not nightly bookings common in Mission Beach, Downtown, and Pacific Beach.
Standard homeowner policies are built for owner-occupied use, not nightly turnovers. Typical gaps include:
- Commercial activity exclusion – Renting any part of your property for profit voids coverage.
- Guest injury liability – Paying guest ≠ a personal guest; injuries during a stay often aren’t covered.
- Business interruption – Lost Airbnb income during repairs is usually excluded.
- Equipment breakdown – HVAC fails during a booking? Not covered unless damage was guest-caused.
We’ve seen real denials: a slip-and-fall in La Jolla with $35,000 in medical bills, a kitchen fire where injury liability wasn’t covered, and a pool accident that led to policy cancellation. Property damage to your home might be partially covered; rental-related liability is where owners get hit hardest.
How should I confirm coverage with my insurer?
Call your agent and ask: “Does my policy cover short-term vacation rentals under 30 days booked via Airbnb or Vrbo?” Then request written confirmation. If you’re on an HO-3 or condo policy with “business pursuits” or “owner occupancy” language, assume no STR coverage until proven otherwise in writing.
What does Airbnb AirCover actually cover—and where are the gaps?
AirCover includes up to $3M Host Damage Protection, $1M Host Liability, pet damage, 14 days of income loss (up to $1M), and deep cleaning reimbursement. It’s helpful but not comprehensive. Claims are frequently denied for missing evidence, timelines, or being categorized as wear-and-tear or mechanical failure.
What’s included:
- Host Damage Protection (to $3M) – Guest-caused damage to your property and contents.
- Host Liability (to $1M) – Third-party injury/property damage claims.
- Income Loss Protection – Up to 14 days during repairs, capped at $1M.
- Deep Cleaning – Extraordinary cleaning tied to the stay.
Common denials:
- Insufficient evidence (≈40%) – No “before” photos proving condition.
- Late reporting (≈15%) – Missing the 14-day window after checkout.
- Pre-existing damage (≈20%) – Host can’t disprove prior wear.
- Wear-and-tear (≈10%) – Normal use, not covered.
- Improper procedure (≈10%) – Didn’t request payment from the guest first, etc.
Industry reality: 40–60% of AirCover claims get denied or underpaid when filed by inexperienced hosts. OODA’s approval rate is 80%+ because we submit airtight documentation quickly and escalate when needed.
How It Works: OODA’s AirCover claim playbook
- Pre-arrival documentation – Timestamped photos before every check-in.
- Post-checkout inspection within 2 hours – Fresh evidence wins claims.
- Professional estimates – Licensed contractor quotes and itemized receipts.
- Structured narrative – Clear timeline tying damage to stay; cite policy terms.
- Escalation – We push denials to Airbnb Trust & Safety supervisors.
Proof: Since 2022 we’ve filed 120+ AirCover claims; 97 approved, $124,000+ recovered. Example: a Mission Beach sofa valued at $800—we documented, claimed $1,000 (replacement, delivery, disposal), and Airbnb approved $750. Owner net cost: $50 vs. $800 without a claim.
Which specialized STR insurance should San Diego hosts use in 2025?
For full-time STRs in San Diego, Proper Insurance consistently offers the most complete coverage at a fair price. Part-time hosts often use Safely as a supplement. Larger portfolios or luxury homes benefit from CBIZ. Some traditional carriers offer STR endorsements, but limits and exclusions are tighter.
Top providers and San Diego pricing benchmarks:
- Proper Insurance – Best for full-time STR; typical SD premiums: $1,400–$3,500/year based on property value.
- Safely (formerly Slice) – Best for part-time; $5–$15/night or $50–$150/month.
- CBIZ – Best for luxury/multi-property; $2,500–$6,000+/year with higher limits.
- STR endorsements – Add-ons to existing carriers; extra $300–$1,000/year with narrower protection.
| Provider | Best For | Typical SD Premium | Liability Limits | Notable Features |
|---|---|---|---|---|
| Proper Insurance | Full-time STRs | $1,400–$3,500/yr | $1M–$2M+ | Replacement cost, business income, equipment breakdown, optional bed bug/flood/quake |
| Safely | Part-time hosts | $5–$15/night or $50–$150/mo | Varies by plan | Adds on to your homeowner policy; flexible for low occupancy |
| CBIZ | Luxury/multi-home | $2,500–$6,000+/yr | $2M–$5M+ | High limits for premium assets in La Jolla Shores, Del Mar, North County |
| Traditional carrier + STR endorsement | Existing clients | $300–$1,000/yr add-on | Often $500k–$1M | Limited availability; exclusions can be restrictive for nightly rentals |
What should my STR policy include?
- Explicit STR language – “Covers short-term vacation rentals under 30 days.”
- Liability – Minimum $1M; we recommend $2M for homes with pools, stairs, or coastal decks.
- Replacement cost – Not actual cash value (ACV).
- Business income – 6–12 months of lost rent coverage.
- Guest-caused damage – Clearly included; no occupancy requirement.
- Nice-to-haves: bed bugs, equipment breakdown, separate legal defense, pet damage.
Is it worth it? One guest injury settles for $150,000. A $1,500/year STR premium equals 100 years of payments. Large claims can exceed $500,000. The math favors proper coverage.
How can guest screening and prevention cut risk before insurance is needed?
Prevention is cheaper than claims. Advanced screening flags high-risk bookings, reduces parties, and creates a clear audit trail for AirCover and insurer submissions. OODA uses Truvy (formerly Superhog) across San Diego assets to deter fraud and secure fast payouts when damage occurs.
Risk profiles we watch:
- High-risk – Under 25, local, last-minute, large group; vague purpose; no reviews; payment hiccups.
- Low-risk – Verified ID, 3+ positive reviews, 3+ nights, specific purpose (“UCSD graduation,” “conference at the Convention Center”), booked weeks ahead.
Why Truvy works:
- Advanced verification – ID + background + risk scoring.
- Digital deposits – Pre-authorize $500–$2,000; charge only if needed.
- Backup coverage – Up to $5M when AirCover denies.
- Faster payouts – Typical 3–5 days when evidence is clear.
Results in our portfolio: Before Truvy (2020–21), damage at 12%, losses at $18,000/year, and 4 parties. After Truvy (2022–present), damage fell to 4% (67% reduction), losses to $6,000/year, with zero parties and zero fraud. Cost is $5–$10/booking; one prevented party (≈$3,000) pays for five years.
What is OODA’s 4-layer protection system for San Diego STRs?
We stack four defenses so nothing slips through: a specialized STR policy (foundation), maximized Airbnb AirCover (first line), Truvy screening and backup, and preventative operations. This approach reduces incident frequency and out-of-pocket costs while keeping your calendar open during peak periods like Comic-Con and summer.
The layers:
- Specialized STR insurance – We guide selection (e.g., Proper), confirm limits, and store certificates.
- AirCover optimization – Our 80%+ approval process: pre-arrival photos, 2-hour inspections, robust estimates, consistent escalation.
- Truvy verification + protection – Screens bad actors, holds digital deposits, and pays when AirCover doesn’t.
- Preventative ops – Quarterly inspections, strict house rules, 24/7 incident response, neighbor relations.
| Protection Layer | Primary Role | Impact |
|---|---|---|
| STR Insurance | Catastrophic + liability + income | Near 100% coverage on valid claims |
| AirCover | Guest damage + liability | 80%+ approvals with OODA process |
| Truvy | Prevention + backup payouts | 67% fewer damage incidents |
| OODA Operations | Incident prevention + response | 60–70% fewer events vs. self-managed |
Example: A Downtown condo coffee table ($900) broke during a stay. We filed AirCover first (denied for “pre-existing”). Truvy approved in 48 hours, paid $900. Owner out-of-pocket: $0. For larger losses, the owner’s STR policy is the final safety net.
How can I get properly insured in 7 days without the busywork?
Audit your policy, gather quotes, activate coverage, deploy Truvy, and implement photo documentation—all within a week. If you prefer hands-off, OODA can execute the entire plan while aligning with San Diego’s STR ordinance and your occupancy goals in La Jolla, Mission Beach, and beyond.
7-day action plan
- Day 1: Audit – Find your policy; read exclusions; ask your agent in writing about “short-term vacation rentals under 30 days.”
- Days 2–3: Quote – Proper, Safely, CBIZ; check your current carrier for an STR endorsement.
- Day 4: Activate – Purchase, download certificate, update listing info.
- Day 5: Truvy – Set up, integrate calendar, set $1,500 deposit, test flow.
- Day 6: Evidence system – Pre-arrival checklist, 2-hour post-checkout inspection, cloud storage, calendar reminders.
- Day 7: Verify – Ensure all layers are live: STR policy, AirCover, Truvy, documentation.
Or hire OODA—we implement the full system, handle claims, and tie risk controls to revenue strategy. Owners see fewer incidents, faster recoveries, and steadier income during peak weeks from the Gaslamp Quarter to North County.
What questions do San Diego Airbnb owners ask about STR insurance?
Most ask if AirCover alone is enough (it isn’t), how to confirm if their homeowner policy covers STR (usually it doesn’t), which provider to choose, and why Truvy matters. They also want to know how OODA achieves 80%+ approvals and whether nondisclosure to insurers is risky (it is).
Is Airbnb AirCover enough, or do I really need my own insurance?
Use AirCover as a first line, not your only protection. Without expert filing, 40–60% of claims get denied. Liability caps at $1M and income loss is limited to 14 days. A dedicated STR policy adds $2M+ liability and 6–12 months of business income coverage.
How do I know if my homeowner’s policy excludes STR?
Ask your agent, in writing: “Does this policy cover short-term vacation rentals under 30 days booked through Airbnb or Vrbo?” Red flags: “business pursuits” exclusions, “owner occupancy” requirements, or a standard HO-3/condo policy. Assume no coverage until proven otherwise in writing.
What’s the difference between Proper and Safely?
Proper replaces your homeowner policy for full-time STRs ($1,200–$3,000/yr typical). Safely supplements for part-time hosts ($5–$15/night or $50–$150/month). If you book 100+ nights/year, Proper is usually more cost-effective and comprehensive.
Does OODA provide insurance?
No. We’re not a broker. We guide selection, introduce vetted providers, and manage documentation and claims. Our AirCover approval rate is 80%+. We integrate Truvy, maintain photo evidence, and file claims so owners get paid faster and more consistently.
Why should I use Truvy if I already have AirCover?
Truvy blocks high-risk bookings, creates a legal audit trail, holds digital deposits, and pays when AirCover denies. In our data, damage incidents fell 67% and parties dropped to zero. Cost is $5–$10 per booking; one avoided party (~$3,000) covers years of fees.
How does OODA achieve 80%+ AirCover approvals?
We prove condition before and after every stay, inspect within two hours of checkout, submit licensed estimates, and escalate denials. We file 10+ claims monthly, so we know exactly how to package evidence and cite policy language to secure approvals.
Can I just not tell my insurer I’m on Airbnb?
No—this is insurance fraud. Expect claim denials, policy cancellation, potential legal action, and personal liability on guest lawsuits. The risk is $50,000–$500,000+. Proper STR coverage usually adds $500–$1,500/year net. Don’t gamble your asset to save a few dollars.
What if a guest sues me for $2 million?
With proper layering: AirCover $1M plus your STR policy $2M gives $3M total. Without STR insurance, you may be personally liable beyond AirCover’s cap—potential liens, wage garnishment, or forced sale. The coverage gap is where bankruptcies happen.
How does OODA help protect my San Diego Airbnb investment?
We set up the right STR policy, optimize AirCover claims with 80%+ approvals, integrate Truvy, and run preventive operations. From La Jolla oceanfronts to Downtown condos near the Gaslamp Quarter, we reduce incidents by 60–70% and out-of-pocket costs by 80–90%—while pursuing a 35% revenue increase via pricing and operations.
We’ve hosted 500+ guests across San Diego with a 4.92★ average rating and Superhost status. Owner M.K. in Pacific Beach upgraded to Proper, enabled Truvy, and let us manage claims. Result: one denied AirCover claim paid by Truvy in 48 hours, and higher summer ADR during Comic-Con week. Our full-service management is a simple 7% fee with 24/7 guest support.
Ready to protect your income and your property? Request a free consultation →
⚠️ Important Disclaimer: This guide is for educational purposes only and is not insurance, legal, or financial advice. Policies vary by provider, property, and state. Always consult a licensed insurance agent for your specific situation. OODA Management is a property management company, not an insurance broker.
Last Updated: January 2025
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