Airbnb Guest Fell Down Stairs — Now Suing Me for $180K

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.
Illustrative scenario prepared by my practice.
For informational purposes only. This is not legal advice.
Hypothetical question

I have been hosting on Airbnb for 3 years without issues. A guest fell down the interior stairs and broke her ankle and wrist. She is suing me personally for $180,000 in medical bills, lost wages, and pain and suffering.

The stairs have a handrail and meet building code. She admitted to my co-host she had been drinking, but now her lawyer claims the treads were “unreasonably slippery.” I have homeowners insurance and Airbnb Host Protection Insurance.

I am freaking out. $180K would bankrupt me. What do I do?

Illustrative response

7-year Superhost here. CHECK YOUR HOMEOWNERS POLICY for a “business pursuits” exclusion. Some policies deny coverage for injuries during short-term rental use.

Every host should: (1) get short-term rental specific insurance, (2) carry a $1M umbrella policy ($200-300/year), (3) hold property in an LLC, and (4) install security cameras in common areas.

Illustrative response

Update: Notified homeowners insurance — they assigned a defense attorney. Filed with Airbnb Host Protection too. My policy covers short-term rentals.

Co-host provided written statement about the drinking. Building inspector confirmed code compliance. Defense attorney thinks this will settle for $30K-$50K, all covered by insurance. Getting an umbrella policy and setting up an LLC going forward. Thanks everyone.