Well, whether hosts should know better than to trust their insurance claims or not - doesn't make it right for Airbnb to tell hosts they don't have to worry about a thing because should a guest damage anything in your home their $1 million insurance policy will cover it.
Not only will it not cover it, but they won't even think to cover it unless the guest ADMITS to being responsible for the damage! So in order to file a claim, you first have to try to talk to guest into admitting their fault. This happened to us one time and the guest simply decided not to admit it! So we filed the claim which you have to do in 48 hours after the guest leaves... meaning the guest will leave you a scathing review because they'll be so furious with you for making the claim in the first place.
If the guest admits fault, then Airbnb expects the guest to pay. If they don't admit fault - then nobody's gonna pay!
The best solution we've found is just to have such cheap things in your home that you won't really care if something breaks. But even that's not full proof because you're still going to have some things that are more expensive than you'd want to have to pay for again.