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Running an Airbnb? What you need to know about insurance

 

Whether you’re letting Airbnb guests stay in your own home or in another property that you own, it can definitely be a great way to earn a bit of extra money and meet some interesting new people. But if you haven’t got your insurance sorted correctly, you could be in for a few costly surprises! Here’s what you need to know.

First things first, talk to your insurer

You’ll have some sort of house insurance in place on your own home or your other properties, but this might not actually cover the guests you’re expecting to host.

Depending on how often you’re letting out your property to guests, you might need a different kind of insurance, such as a commercial or landlord policy. Standard house and contents policies typically cover one-off Airbnb stays, but it’s best to talk to your insurer about what you’re covered for and what you’re not.

You’ll need to also discuss what would be covered in the event of damages to your property by any guests – if your guests are paying to stay in your home, any deliberate damage might not be covered at all.

It’s important to disclose everything you can when it comes to your Airbnb rental, including whether or not you will be living in the property at the same time. If you’re letting out a home that’s unoccupied, you’ll need to keep up certain maintenance obligations to keep your cover in place.

Check what protection is in place for you

Airbnb has a few different protection policies in place to make sure that you’re supported should anything go wrong. Although these don’t replace insurance, it’s important that you’re aware of what you can access through accommodation sites like Airbnb.

Airbnb in particular has what’s called a Host Guarantee, which helps to protect you if a guest causes damage to your home or contents. This doesn’t cover theft or guest injury so it’s a good idea to make sure you’ve got solid insurance cover in place.

You can mitigate any risks by always securing any valuables and removing any expensive household items from the place of rental. You can also create an added level of protection by requiring your guests to pay a security deposit, making it less likely for you to need to make a claim or pay any excess as you can take what you need from that deposit should anything get damaged.

Check what protection is in place for your guests

Since your guests are staying in your home or property, it’s important that you make it as safe as possible for them. This includes having working smoke alarms installed and removing any faulty appliances straight away.

If your guests have an accident in your home that causes them harm, they will likely be covered by ACC, even if they are visiting from overseas. As an Airbnb host, you can also take up Host Protection Insurance in case your guests get hurt.

You can also mitigate any risks to your guests by ensuring that doors and windows have operational locks, that any hazards such as heaters and fireplaces are in good working condition, and that guests understand how to use all appliances correctly. It’s especially important to complete regular check ups on the property if it is unoccupied for long periods of time.

If you’re thinking about using your property as an Airbnb or you just want to know if you have the right insurance for your current Airbnb rental, get in touch with us for a chat.

 

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