Is your Airbnb listed property adequately insured?
Airbnb is fast becoming a popular accommodation choice for most Australians with listings topping over 140,000 in the last 12 months alone. However, most hosts are unaware if their existing insurance policies would cover them while hosting guests. According to Airbnb, 95% of hosts carry either homeowners or renters insurance. If damage occurs during a guest’s stay, liability can be specifically excluded by home owners insurance, while landlord insurance generally applies to stays of longer than 90 days.
The Insurance Council of Australia recommends taking the following steps before putting a property up for short term rental:
- Check your insurance Product Disclosure Statements before advertising your property on a short-stay platform
- Do not rely on the rental platform’s host protection insurance as this will likely not cover the personal property of the host or public liability in shared areas
- Ensure all valuables are removed from the property during the short-term stay
- Check strata rules, tenancy agreements and local council laws to ensure short-term holiday lets are permitted
- Take steps to ensure the property is safe and secure
Hosts should consult with an experienced insurance broker to ensure they hold an appropriate level of protection.