The quick answer to your question is GET GOOD INSURANCE YOURSELF!
You ask: “what happened if they break a window or something expensive?“ is that what actually happened or is it a hypothetical? If that’s what happened then you need to charge them for the damages.
You also ask: “I’m starting to wonder if Peerspace’s claim of “you’re insured” is misleading, as to what they define by insurance.” I too had this question and have spent many hours on the phone with PeerSpace’s wonderful customer support staff to discuss it (and I recommend you do your own research too), but the jist of it is that PeerSpace insures the guest only, and they do NOT insure the host!!!
This is very important to understand! You need to have your stuff insured yourself (which you should anyways), and you are responsible for making a claim and paying the deductible. NOT PeerSpace. You can request that your renters apply for their own one day event insurance (but this is only cost effective if you have a big rental), or you will just need to politely ask the people to pay for what they broke. PeerSpace can help try to resolve the charges thru their system (since they do keep the client’s credit card on file), but this is mainly helpful for minor damages with minor charges.
Bottom line is BE CAREFUL with who you rent to, and try to vet people the best you can. DO NOT keep valuables at your rental location! And make sure you have everything INSURED with a deductible you can afford (not like a $10k deductible, but one that won’t break your bank if/when something’s broken). This has been a problem for Air-BnB when guests would break expensive art, AirBnB just said, too bad, not our fault, it’s your problem to deal with. And it seems PeerSpace is taking the same legal standing by trying not to be liable for anything important. Not to say that if a guest gets hurt it isn’t important, and I’m sure the guest would be happy to have a settlement thru PeerSpace in this case, but that won’t help you as a host.
And lastly, if a guest brings more guests than agreed upon, you can very well charge extra. PeerSpace has an option for varying the rate based on attendance, and you should list this in your space description. To prevent people partying at our space, we say: “no late night dance parties allowed”, and have a no alcohol policy (unless negotiated and agreed upon prior). These are ways to weed out the people looking for a party venue. And if they break your rules, you have the right to ask them to stop or vacate your property. You can also call the cops on them if they don’t comply (which I’m sure wasn’t warranted at your event), but don’t be shy and feel like you are at the mercy of a bad review.
And lastly, don’t be bashful to leave a bad review. I know no one likes bad reviews, but if they deserve one because they were taking advantage of your generosity, then by leaving an honest review it might prevent other hosts from having a similar experience. You would be doing all us other hosts a favor! I’ll give you a recent example where an Air-BnB guest threw an unauthorized party, and one of the party guests brought a gun and murdered someone else at the party. Not a good surprise for the owner of the house to come home to!!! Don’t become that guy!
If you do allow things like parties, you should stay on site, have security cameras, and require a certified bouncer (not just someone’s cousin) to be available to attend the event for security.
Understand your rights!!! Be aware! And protect yourself! There’s a lot of shit in this world. But there are also wonderful people who really appreciate renting our affordable creative spaces, and as long as we keep our spaces safe, then we can continue being a good resource to the community.