I'm not sure why this being downvoted. What liability does Airbnb have? Financially, the burden for the damage should be covered by the host's renter's insurance. If she wasn't properly insured, how is that the fault of airbnb?
From the earlier conversations on this particular issue, business insurance (i.e. landlord insurance, hotel insurance) is needed. You can't get business insurance to run an unlicensed business in a private residence, particularly if a) your home isn't zoned for it, and b) if it violates your lease (in the case of a rental)/HOA (in the case of homeownership)/local law (in the case of NYC/SF/Paris et al.). Is there an opportunity there for someone to step up and insure Airbnb-style rentals? Yes. Meanwhile, though, these rentals are not insurable.
