Will airbnb’s New Secondary Insurance Really Protect Hosts?

A liability risk for Airbnb hosts

From the New York Times, December 6, 2014

And now comes Airbnb with its free $1 million liability coverage that will cover the hosts for its tens of thousands of United States listings. How can it afford to provide this for nothing, to everybody? Well, it is ”secondary” coverage, which means that it, too, wants hosts to push any claims for guests’ injuries and deaths through hosts’ own insurance companies first.

So how might that work in practice, or would it at all? This week, I sent 17 questions about Airbnb’s move and short-term rentals in general to the biggest home insurance companies in the United States as ranked by SNL Financial.