You like idea of earning some easy extra cash by renting your home in Geelong or the Bellarine on Airbnb. It seems like this would be risk free with Airbnb insurance? Actually no, it is not that simple at all.
Here are five things to consider about insurance before becoming an Airbnb host.
- What type of Airbnb rental are you providing? Are you renting out your own home or an investment property. Each situation is different and will have different insurance requirements. To make sure you are covered it is wise to contact your insurance provider.
- Are you exclusively Airbnb? Or is your property also listed on other short term rental sites like Stayz, or Homeaway? Airbnb has a Host Guarantee Policy for damage caused by Airbnb guests but if you rent your property out via one of the other booking facilities you will need your own policy to cover malicious damage by those guests.
- What does the actual Airbnb Host Guarantee Policy actually cover? Airbnb includes information on its website about their Host Guarantee Insurance but it does not cover the normal perils insurance covers like fire, water damage.
- What are the costs of the insurance? If you are looking to make some money via Airbnb you will need to factor in the cost of insurance but more importantly that your policy covers your needs.
- Liability Limits – Airbnb states on their website that their policy covers building owners for $1 million USD for personal injury or property damage claims that happen “in a listing, or on an Airbnb property, during a stay”. This insurance might not cover all other claims.
Airbnb might seem like an easy and risk free way to earn some extra cash but when it comes to insurance is it actually quite complex. If you do decide to rent your property out via Airbnb make sure you advise your insurance company immediately and that you understand under what circumstances the Airbnb policy would cover you
If you would like advice on how best to protect your property as an Airbnb Host you can call our Geelong office on 5226 5999 and one of our team will provide advice specific to your situation.
GENERAL ADVICE WARNING
Advice provided in this post is general advice that means we have not taken into account any individual objectives, financial situation or needs you may have. Before acting on any advice in this article you should consider the appropriateness and suitability in light of your own individual objectives, financial situation or needs. If you so require, we can assist you in assessing the best option for your needs and provide you personalised advice, please contact our office.