Let’s say you decided to rent your property through Airbnb. However, you’re uncertain whether your home and contents insurance will cover for hosting guests.
Is the Airbnb insurance programme enough?
If that’s also your question, you’re in the right place.
As one of the fastest growing businesses in Australia, Airbnb has had over 70,000 listings in 2016 alone. More and more people are drawn to the opportunity of renting a room or part of their home via peer-to-peer house sharing websites like Airbnb.
If you’re in the same situation, you need to pay closer attention to the standard short-term rental policy. So, let’s start by looking at the different aspects of Airbnb insurance for both hosts and landlords.
Airbnb insurance coverage for hosts
Airbnb’s Host Protection Insurance provides hosts with up to $1 million of liability coverage. This is a specifically-designed product that covers primary liability claims if a guest is physically injured, has their property damaged or stolen during their stay on your property.
The truth is, Airbnb’s programme acts as primary coverage for eligible losses but doesn’t guarantee it.
Tip: Airbnb’s Host Protection Insurance doesn’t guarantee coverage for building property damages.
Airbnb’s Host Protection Insurance doesn’t guarantee coverage for building property damages.
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Let’s take a look at some of the things Airbnb’s Host Protection Insurance doesn’t cover for:
- liability from intention to harm the guest
- loss of earnings if your guest cancels or cuts short their stay
- personal and advertising injury
- harm to the guest caused by fungi or bacteria
- Chinese Drywall
- communicable diseases
- acts of terrorism
- product liability
- pollution or asbestos
- lead or silica
Airbnb insurance coverage for landlords
The company’s website states that the Host Protection Insurance programme covers landlords and homeowners associations in many cases when claims are brought against them.
At the same time, Airbnb’s primary protection service may also cover claims if a guest damages building property. This means the landlord is covered only if the guest charges Airbnb and/or the host in their liability claim.
However, relying on probability when it comes to your insurance policy could lead to potential losses for you.
Which brings us to our final question…
Is landlord insurance the answer?
Let’s assume you rent your property on Airbnb but you’re only covered by standard landlord insurance policy.
Can you rest assured that you’ll not have to deal with expensive repairs or public liability claims which could amount to hundreds of thousands of dollars?
Well, there are some landlord insurance policies specifically designed for short-term rental situations.
Sticking with standard home and contents insurance might be the safest option for you since it generally covers the following claims:
- accidental damage
- damage caused by storms and natural disasters
- theft or malicious damage by a tenant
- public liability in case a tenant is injured on the property
- loss of rent
The most important thing you can do is check with your insurance provider before putting your property on any short-term holiday stay websites.
More so, Airbnb’s Host Protection Insurance should be used in addition to standard home and contents policies.
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Don’t take any risks on your Airbnb insurance policy
The specialists at Shuriken can help you evaluate your current insurance policy coverage and assist you in making the wisest decision when renting your property on Airbnb. Let’s get in touch below!
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