When Airbnb eliminated mandatory security deposits in 2022—replacing them with the AirCover damage protection program—many Seattle STR owners didn't notice the change until they filed a damage claim and found the process more complicated than expected. The shift from a cash deposit model to a platform-administered protection program has meaningful implications for how hosts recover costs after damage incidents.
Key takeaways
- Airbnb no longer allows hosts to collect mandatory security deposits from guests. The security deposit field in listing settings is used only for informational purposes and cannot be charged or withheld.
- AirCover for Hosts provides up to $3 million in damage protection, and reimbursement requests must be submitted within 14 days of guest checkout.
- AirCover excludes normal wear and tear, cash and securities, vehicles parked off the property, and damage from prior guests or pre-existing conditions.
- The single most important damage protection habit is the move-in/move-out photo audit: a dated photographic record of the property condition before and after every stay.
- For VRBO listings, Generali Guest Damage Protection operates similarly to AirCover with comparable exclusions; hosts should understand both systems if running a multi-channel listing.
What happened to Airbnb security deposits
Prior to 2022, Airbnb hosts could set a security deposit—typically $200–$500—that guests were informed of at booking. If damage occurred, the host could request a charge against this deposit through Airbnb's resolution center, with Airbnb mediating disputes.
Airbnb phased out this model beginning in late 2022, citing guest experience friction (the deposit requirement reduced booking conversion) and replacing it with AirCover's expanded damage protection. The security deposit field still appears in some listing management interfaces, but as of 2026 it functions as an informational disclosure only—Airbnb does not hold or charge a security deposit on the host's behalf.
For Seattle STR owners accustomed to the deposit model, this means the backstop of a guest's upfront cash commitment no longer exists. The incentive structure for guest behavior around property care is now indirect (Airbnb review system, potential platform bans) rather than the direct financial accountability of a held deposit.
How AirCover damage claims actually work
AirCover for Hosts damage protection covers up to $3 million per incident for guest-caused damage. But the claims process has specific requirements that hosts must follow precisely:
Step 1: Document before and after every stay AirCover requires evidence that the damage was caused by the guest during their specific stay—not pre-existing, not from a prior guest, and not normal wear and tear. Without timestamped photographic evidence of the property condition before the guest arrived and the damage after they departed, Airbnb has grounds to dispute or deny the claim.
Step 2: Attempt resolution with the guest first Before filing an AirCover claim, Airbnb requires hosts to contact the guest through the Airbnb platform and attempt to resolve the damage cost directly. Document this contact. If the guest acknowledges the damage and agrees to pay, the resolution can proceed without involving AirCover. If the guest disputes responsibility or does not respond within 24 hours, proceed to Step 3.
Step 3: File the AirCover claim within the 14-day window The reimbursement request must be submitted strictly within 14 days of checkout. While Airbnb no longer disqualifies claims if a new guest has checked in before the filing occurs, completing a full photographic walkthrough during the turnover window remains an operational best practice to prevent the chain of evidence from blurring.
Step 4: Provide documentation Airbnb's claims team will request: photos and video of the damage, receipts or quotes for repair or replacement, and the pre-stay condition documentation showing the damage did not exist before the guest arrived. Claims without strong documentation are frequently reduced or denied.
Step 5: Airbnb review and resolution Airbnb reviews the claim, may contact the guest for their account, and issues a determination. The timeline varies; routine claims are typically resolved within 7–14 days. Disputed claims—where the guest denies responsibility—can take 30 days or longer.
What AirCover damage protection excludes
Understanding the exclusions is as important as understanding the coverage. AirCover does not cover:
- Normal wear and tear: Scratched floors, faded upholstery, worn carpeting, and similar gradual deterioration are excluded regardless of guest density or stay length.
- Pre-existing damage: Any damage that existed before the guest's stay cannot be claimed—which is why pre-stay photo documentation is not optional.
- Cash, gift cards, and securities: If a guest steals cash or financial instruments you left in the property, AirCover does not apply.
- Personal vehicles: Damage to your car parked off the property is excluded. (On-property vehicle damage during guest stays may be covered.)
- Shared or common areas: In multi-unit buildings, damage to hallways, lobbies, or common spaces is excluded unless exclusively used for the guest stay.
- Acts of nature: Water damage from a rainstorm, wind damage, or earthquake damage during a guest stay are not covered by AirCover—these fall to your property insurance.
- Damage from undisclosed guests: If the guest brought additional occupants beyond the listed booking count and those undisclosed guests caused damage, Airbnb may dispute coverage on the grounds that the booking terms were violated.
- Business interruption: If the damage renders your property unusable for bookings, AirCover does not compensate for lost rental income during repairs. This is a significant gap for owners with a heavily booked property.
The VRBO equivalent: Generali Guest Damage Protection
VRBO's approach is slightly different. VRBO offers an optional Guest Damage Protection product (underwritten by Generali) that guests can purchase at booking for a per-stay fee, covering accidental damage up to a set limit (typically $1,500–$3,000 per stay). Hosts can also purchase a host damage protection add-on.
VRBO does allow hosts to set and collect security deposits directly—the platform has not eliminated deposits the way Airbnb has. For multi-channel Seattle STR operators who list on both platforms, understanding the different deposit and damage models for each is essential.
Building a damage protection system that works
Given AirCover's process requirements and exclusions, proactive documentation is the most important protection a Seattle STR host can implement. URPM's standard protocol for all managed properties:
Before every guest arrival:
- Complete photo walkthrough of every room, including floors, walls, appliances, and furniture. Minimum 30–50 photos per turnover.
- Video sweep of the bathroom, kitchen, and any high-risk surfaces (glass, mirrors, specialty flooring).
- Timestamped file storage: photos are automatically tagged with date and time and stored in a property-specific folder.
After every guest departure:
- Cleaning team conducts a damage inspection before cleaning begins—damage photos need to show the condition as left by the guest, not post-cleaning.
- Any damage above a minor threshold is escalated immediately to the property manager, who initiates the AirCover documentation process.
Minimum stay strategy as damage mitigation: A three-night minimum reduces the frequency of guest turnovers—and thus the cumulative risk surface—by roughly 60% compared to accepting one-night stays. One-night stays attract lower-intent bookings at disproportionate damage risk. URPM's minimum stay and calendar strategy for Seattle STRs is covered in detail in the related article below.
What URPM handles for managed properties
URPM's managed property protocol includes pre- and post-stay photographic documentation, same-day damage escalation, AirCover claim filing on behalf of owners, and direct liaison with Airbnb's Host Support team for disputed claims. Owners receive a report of any damage incident with documentation and resolution outcome.
Frequently asked questions
Can I still charge a security deposit on Airbnb? No. Airbnb removed the ability to charge and hold a security deposit from guests. The deposit field in your listing settings is informational only—it does not result in any funds being held or charged.
What's the most common reason AirCover claims are denied or reduced? Insufficient documentation of pre-stay property condition. If you cannot show, with timestamped photos, that the damage did not exist before the guest arrived, Airbnb can attribute it to prior guests, pre-existing conditions, or normal wear and tear. This is the most preventable claim failure.
Can I take a guest to small claims court if AirCover denies my claim? Yes, in Washington state. Small claims court handles disputes up to $10,000. You would need the guest's identity (which you can request through Airbnb's legal process) and documented evidence of the damage and its cost. In practice, small claims is rarely pursued for amounts under $2,000–$3,000 given the time and effort involved. A strong insurance policy that covers guest damage above AirCover's process is a more practical backstop.