Earlier quoted context omitted.
That's not exactly the point. An insurance policy for a high risk activity - let's say skydiving - is very well definited. There are statistics on accident rates. There is a pretty defined payout when someone dies. The problem is not the risk level, it's the undefined nature of the problem. AirBnB doesn't know the value of the property they are renting. They don't have a long enough history to figure out what these k…
> Does AirBnB limit their pay out? Yes. And make it clear that the payout is limited in the TOS. That way AirBnB/their insurer assume some well-defined amount of risk and it's not all on the renter. The issue of insurance fraud is tougher though.
It would be a fun problem to solve for them.
I don't think the actual per-room-night price for, say, $10-20k in contents and $bignum in liability (i.e. my guest burns down the building and kills everyone) would be that high; on the order of $10. 2m nights is enough to have some data, and this is similar to the vacation market.
It could even just be a rider on top of existing homeowners/renters insurance. A nice trick might be to sell renters insurance at the same time, and make money off that (which is IMO something everyone should have anyway, even if they don't use airbnb), with free coverage for airbnb use.