• The place to find the right expertise and make better decisions
  • Find the right expertise

Blog

Airbnb Insurance Tips for Hosts and Landlords

Andrew Jeffers | May 01, 2018

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.


You might also be interested in: GST Tax Credit Insurance Changes You Should Lookout For


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.


You might also be interested in: How Does ATO Treat Uber & Airbnb Style Services?


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!

About Me

Andrew Jeffers

Current Rating: 4.88 / 5
Accountant
www.andrewjeffers.com.au
Sydney, New South Wales
0423 308442
A lot of accountants offer financial services. Of course, Shuriken goes beyond that. Shuriken is at the forefront of accountancy, providing clients with a broad range of services, coaching and mentoring. Here you can connect with experts who understand what is important to you: building your business and helping you grow.

To add value, we have four client-focused divisions:

Shuriken Digital offers a comprehensive range of services covering online branding, reputation management, digital marketing and advertising which are fully customised to help our clients engage their audience, manage their online presence, build powerful brands and achieve their goals

Shuriken Wealth is a high-level service combining financial and investment advice, accounting and tax services, retirement planning and legal or estate planning to help our clients create and manage their wealth by guiding and monitoring their financial situation.

Shuriken Insurance proactively helps our clients to identify risks in both their business and personal life and put in place adequate strategies to reduce those risks such as professional indemnity, business insurance and vehicle fleet insurance.

Shuriken International provides soft landing services to overseas businesses that want to set up in Australia. Our services cover everything from tax advice, recruiting staff, licence issues, setting up an office and even finding a home.