I am non-representatively paranoid, and have always been afraid of this kind of thing when having guests not personally known to me, visitors to "open house" office events, etc. I think there is little actual risk with almost anyone as a guest (most people ARE good, or at least non-malicious, or at least lazy), but this is why the AirBnB reputation system is so key to their value (and why they'll have a strong network effect).
Maybe the effect of this will be to make people want personal connections (via fb graph or whatever) to their AirBnB guests, or at least requiring minimum numbers of positive reviews from known sources (to prevent the sockpuppet/shill issue).
I wonder if your renter's or homeowners insurance might cover this kind of thing. If it doesn't generally, it'd be awesome if AirBnB could work with a third party insurer (per jurisdiction) to offer optional insurance to hosts (and guests) against this kind of thing.
I suspect home owner's insurance would not cover this since they would probably see it as an unlicensed rental. I've thought for a while that Airbnb will need to develop an insurance system. I'm sure that lesser incidents of property destruction / theft are far more commonplace (carpet stains, cigarette burns, appliances damaged, "borrowing" something that doesn't get returned) and I've thought dealing with such is going to be eventually crucial to making the model sustainable over time.
And then, of course, there are going to be rare catastrophes like this one -- or worse. Eventually, if the system gets large enough, there will be a sexual assault case. I wonder if Airbnb has pre-baked disaster scenario plans. Eventually they'll have to deal with the emotional, PR, legal and political fallout.
It's still one of the things that keeps me queasy about listing my extra bedroom. I'd guesstimate the replacement value of the contents of my apartment is circa $50k and I'm loathe to gamble with such.
I'd be more worried about a guest setting the house on fire, by accident or not. Fire-damage can easily clock in north of $500k. Good luck explaining the AirBnB concept to your insurance company after a stranger turns out to be "not available anymore" (stolen CC, etc.).
A thousand times, yes. You'd be insane not to carry at least a half million dollars in coverage for fire loss in a city like San Francisco. I think my own rental insurance covers something like $1M, and they explicitly don't cover losses incurred to property that I'm renting to others. That's another class of insurance -- much more expensive, because the risks are so much higher.
I think you have to be incredibly naive to rent out your personal apartment on AirBnB. The downside risk is virtually unbounded (and lest you think I'm exaggerating: what happens if a tweaker AirBnB renter burns down your building, and your neighbors die in the fire? Hello, civil judgment.)
It'd be awesomer if AirBnB just replaced all the material things that are replaceable, relocated this person, and in general made them feel happy/safe again. One time only, introduce a better model to prevent/mitigate/insure (as you suggest) for future occurrences.
Maybe the effect of this will be to make people want personal connections (via fb graph or whatever) to their AirBnB guests, or at least requiring minimum numbers of positive reviews from known sources (to prevent the sockpuppet/shill issue).
I wonder if your renter's or homeowners insurance might cover this kind of thing. If it doesn't generally, it'd be awesome if AirBnB could work with a third party insurer (per jurisdiction) to offer optional insurance to hosts (and guests) against this kind of thing.