📋 Overview

You've received a demand letter claiming a guest was injured at your vacation rental property. As an Airbnb, VRBO, or vacation rental host, understanding your insurance coverage and legal defenses is critical to protecting your assets.

⚠ Report Immediately

Notify Airbnb's AirCover, VRBO's liability program, AND your personal homeowner's/landlord insurance within 24 hours.

🕒 Preserve Evidence

Document property condition, gather booking records, house rules, and any photos/video from the time of incident.

💰 Multiple Coverages

Platform insurance, personal liability, and umbrella policies may all apply. Layer your protection.

Common Vacation Rental Injury Claims

  • Slip and fall - Wet pool decks, slippery stairs, bathroom falls
  • Pool/hot tub accidents - Drowning, chemical burns, slips
  • Deck/balcony failures - Railing collapse, structural issues
  • Carbon monoxide exposure - Faulty heaters, blocked vents
  • Fire injuries - Defective wiring, propane grill accidents
  • Bed bug infestations - Allergic reactions, bites

Legal Services Pricing

  • 📄 Demand letter: Flat fee $450
  • ⏱ Extended negotiation: $240/hr
  • 📊 Contingency: 33-40% for strong claims

🛡 Insurance Coverage

Vacation rental hosts typically have multiple layers of insurance protection. Understanding what each covers is essential.

Airbnb AirCover

Up to $1 million Host Liability Insurance for third-party injury claims during confirmed stays. Report through Resolution Center.

VRBO Liability

$1 million liability coverage through their Liability Insurance program. Must be enrolled and meet eligibility requirements.

Personal Homeowner's

May exclude short-term rental activities. Check your policy - many require a landlord or commercial policy for STR hosting.

⚠ Platform Insurance Limitations

Airbnb and VRBO insurance programs have significant exclusions:

  • Intentional acts or gross negligence
  • Injuries to hosts, family members, or employees
  • Incidents outside confirmed booking periods
  • Certain high-risk amenities may be excluded
  • Claims require platform notification within specific timeframes

Steps to Activate Coverage

  1. Report to platform immediately - Use Airbnb Resolution Center or VRBO's claims process
  2. Notify personal insurance - Your homeowner's/landlord carrier should be informed
  3. Document everything - Get claim numbers and adjuster contacts
  4. Do not admit fault - Let insurers investigate before making statements
  5. Preserve all evidence - Platform will request booking records, communications

🛡 Defense Strategies

Even when guests are injured, multiple defenses may reduce or eliminate your liability.

Assumption of Risk

Guests who voluntarily use recreational amenities like pools, hot tubs, bicycles, or kayaks assume the inherent risks of those activities. This is a strong defense when injuries occur during optional recreational use.

When to use: Guest injured using pool, hot tub, sporting equipment, or other recreational amenities you provided.

Liability Waivers

If your house rules or rental agreement included a liability waiver that guests acknowledged, this provides protection for many types of injuries. Waivers are most effective for obvious risks and recreational activities.

When to use: Guest agreed to house rules containing waiver language; rental agreement included liability release; guest acknowledged specific risk warnings.

Contributory/Comparative Negligence

If the guest's own carelessness contributed to their injury, their recovery should be reduced proportionally. In pure comparative negligence states like California, even a 90% at-fault guest can recover 10% of damages.

When to use: Guest was intoxicated, ignored posted warnings, used amenities improperly, or engaged in reckless behavior.

Open and Obvious Hazards

Property owners have reduced duty to warn about hazards that are open and obvious to reasonable adults. Stairs, pools, and natural terrain features are typically considered obvious.

When to use: Guest tripped on visible stairs, slipped in obviously wet pool area, or injured on clearly visible terrain.

Lack of Notice

If a dangerous condition developed suddenly and you had no opportunity to discover or remedy it, you may not be liable. This requires showing reasonable inspection routines.

When to use: Condition developed between cleanings, no prior complaints, regular maintenance schedule documented.

🚨 Defenses That Won't Work

  • "They signed a waiver" alone - Waivers don't cover gross negligence or code violations
  • "It was their own fault" without specifics - Need concrete evidence of guest misconduct
  • "I didn't know about the problem" - If you should have known through reasonable inspection
  • "Other guests never complained" - Doesn't establish the condition was safe

🔍 Evidence to Gather

Strong documentation supports your defense and may reveal the guest's comparative fault.

Booking and Communication Records

  • Complete booking confirmation and guest details
  • All platform messages with the guest
  • House rules acknowledgment or signature
  • Rental agreement with liability provisions
  • Check-in/check-out communications

Property Documentation

  • Photos of property condition before and after stay
  • Maintenance logs and inspection records
  • Safety equipment certifications (smoke detectors, CO monitors)
  • Pool/hot tub maintenance and chemical logs
  • Prior inspection reports or certifications

Incident-Specific Evidence

  • Security camera footage (if available)
  • Photos of alleged hazard condition
  • Witness statements from neighbors or co-hosts
  • Guest's own statements about what happened
  • Medical records showing injury timeline and cause

💡 Review Guest's Social Media

Guests often post about their vacation. Photos or posts showing intoxication, reckless behavior, or activities inconsistent with their claimed injuries can be powerful evidence of comparative fault.

📝 Sample Response Letters

Insurance Referral Response
Re: Your Demand Letter dated [DATE] - [GUEST NAME] Injury Claim I acknowledge receipt of your demand letter regarding the alleged incident at my vacation rental property on [DATE]. This matter has been reported to: 1. Airbnb Host Liability Insurance (AirCover) Claim Reference: [NUMBER] 2. My personal liability insurance carrier: [INSURANCE COMPANY] Claim Number: [NUMBER] Adjuster: [NAME AND CONTACT] Please direct all correspondence regarding this claim to the above parties, who have authority to investigate and resolve this matter. No admissions are made regarding any facts alleged in your letter. Sincerely, [YOUR NAME]
Assumption of Risk Defense
Re: Demand Letter dated [DATE] - Liability Disputed I have reviewed your demand regarding your client's alleged injury on [DATE]. We dispute liability for the following reasons: 1. ASSUMPTION OF RISK: Your client's injury occurred while voluntarily using the [pool/hot tub/recreational equipment]. By choosing to use this amenity, your client assumed the inherent risks associated with such recreational activity. 2. WAIVER ACKNOWLEDGED: Prior to booking, your client agreed to our House Rules which clearly state: [quote relevant waiver language]. This acknowledgment was recorded on [DATE/TIME]. 3. WARNINGS PROVIDED: The property contains clear signage warning of [relevant warnings - e.g., "No Diving," "Use at Own Risk," etc.] 4. COMPARATIVE FAULT: Based on available evidence, your client's own conduct contributed to this incident, including [describe - e.g., "using the hot tub while intoxicated," "diving in shallow water despite posted warnings"]. We reject this claim in its entirety. Should you choose to pursue litigation, we will vigorously defend and seek recovery of attorney fees. Sincerely, [YOUR NAME]
Lack of Notice Defense
Re: Response to Demand dated [DATE] I dispute liability for the alleged incident at my property on [DATE] for the following reasons: 1. NO PRIOR NOTICE: We had no actual or constructive notice of the alleged condition. Our records show: - Property was professionally cleaned on [DATE], [X] hours before your client's arrival - No prior guests reported any similar issue - Regular maintenance inspection occurred on [DATE] 2. REASONABLE INSPECTIONS: We maintain a regular inspection and maintenance schedule that meets or exceeds industry standards for vacation rental properties. 3. SUDDEN CONDITION: If the alleged condition existed, it developed suddenly between our last inspection and the incident, with no reasonable opportunity to discover or remedy it. Under premises liability law, property owners are not insurers of guest safety and are only liable for dangerous conditions they knew or should have known about. This claim is denied. Sincerely, [YOUR NAME]

🚀 Next Steps

Step 1: Report Claims

Notify Airbnb/VRBO and personal insurance within 24 hours of receiving demand.

Step 2: Preserve Evidence

Gather all booking records, communications, photos, and maintenance logs.

Step 3: Do Not Admit Fault

Acknowledge receipt but make no admissions about liability or facts.

Step 4: Get Legal Review

Have an attorney review the demand and prepare a formal response.

Need Professional Assistance?

Get expert help defending against vacation rental injury claims.

Schedule Consultation - $450

Resources

  • Airbnb AirCover: airbnb.com/aircover-for-hosts
  • VRBO Liability Insurance: vrbo.com/vacation-rental-liability-insurance
  • California Civil Code 1714: General duty of care for property owners
  • Code of Civil Procedure 335.1: Two-year statute of limitations