Are you considering converting your home into a short-term rental? In the unexpected event that something goes wrong, your regular home insurance might not protect you. Airbnb host insurance is something you should consider before renting out your house.
What Does Airbnb Host Insurance Include?
Airbnb offers a Host Protection Insurance program that provides primary liability coverage of up to $1 million USD per occurrence. This protects you against third-party claims of bodily injury or property damage for which you are liable. However, the insurance does have a list of excluded items, such as pollution, fungi and bacteria infection, intentional damage, and loss of earnings. (For a more detailed list of covered items, please read Host Protection Insurance)
Additionally, Airbnb’s Host Guarantee Program insures you against property damage up to $1 million USD. However, it does not include damage to shared common areas of buildings, damage caused by pets, or loss of cash and securities.
What Does Airbnb Host Insurance Mean to You?
Airbnb Host Protection Insurance and Host Guarantee Programs are essential if your property is used for vacation rentals. If you receive bookings through Airbnb, you are automatically covered.
For bookings made via other platforms such as Trip Advisor, Booking.com, Agoda, Expedia, etc., they don’t provide host protection insurance like Airbnb does. To compensate for the potential damage you face as a host, KozyGuru has imposed a security deposit ranging from A$250 to A$500. However, this amount is minimal considering damages could easily mount up to hundreds of thousands, not to mention deliberate damages by tenants.
What Kind of Host Insurance Should You Use?
For your short-let property, consider upgrading your existing home insurance to provide extra protection in addition to Airbnb’s coverage. This can also serve as your primary insurance for bookings received from other platforms.
We recommend seeking out an insurance provider that offers comprehensive protection for the vacation rental use of your property. Discuss the details with them before signing up for their service.
SGUA is a niche-market underwriter specializing in insurance for homeowners who short-let their property. They cover:
- Malicious damage by third parties
- Damages caused by natural catastrophic events
- Burst pipes
- Accidental glass breakage
- Burning out of electrical appliances
- Legal liability
For short-let homeowners, we recommend SGUA’s Holiday Unit Insurance. You can also contact them at (08) 9417 8501, email them at [email protected], or visit their website for more information.
How Much Does Host Insurance Cost? Is It Worth It?
The annual cost varies for each property depending on its location and the range of coverage you choose. As homeowners, we care for our property and don’t want to see it damaged. But when uncertainty strikes, this safety net will minimize the risk we face. A few hundred dollars a year can insure you against one incidental damage that can drain your wallet dry. So, our advice is: Get the protection!
Disclaimer: KozyGuru does not receive any financial commission from readers signing up with SGUA for their insurance products. The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from the website owner.
