4 Things To Not Get Wrong When It Comes To Airbnb Insurance
It’s simple and can be very profitable. Join Airbnb, upload some nice photos of your pad and wait for the bookings to roll in. The tax breaks on renting out a room in your house makes it even more appealing.
But, of course, it is not always that straightforward. If you’re one of the 80,000 homeowners in the UK letting through Airbnb, it is essential that your insurance is right. If not, that seemingly easy way to earn some extra cash could prove a very expensive problem.
Four things to not get wrong when it comes to Airbnb insurance:
1) Always tell your insurer that you are renting out your home, or part of it
Do you need to tell your insurer that you’re renting out a room through Airbnb? Yes. It’s essential that you tell your home and contents insurer that you are renting out your home, or part of it, to paying guests. If you don’t, you could invalidate your policy. That means you won’t be able to make a claim even if it is for something completely unconnected to having guests to stay.
Standard home insurance is calculated on the individual occupants, not just the number of people living in a property. Your current insurer may be unable to continue to insure you if you are letting out a room, or your premiums may rise to cover the increased risk. To maximize your profits, shop around for a better insurance deal. You might find a better price by opting for specialist hotel and guesthouse insurance, which is developed specifically to cater to the needs of the short-term letting industry.
Click here for a no obligation quote for your Airbnb hosting
2) Don’t rely on the Airbnb Host Guarantee
At the beginning of the year, the media reported that one unfortunate Airbnb host returned home to find her home trashed by a guest who had thrown a party for 60 people in the property. An estimated £3,000 worth of damage was caused. In another report, over $10,000 damages were caused inadvertently by an Airbnb guest flushing items down the loo. This resulted in the toilet overflowing, flooding the hallway and damaging a neighbouring flat as well.
These might be extreme situations, but claims arising from damage caused by Airbnb guests are by no means rare. Airbnb’s Host Guarantee does give you a degree of cover, but it is limited and is not intended as an insurance policy. It doesn’t cover theft, pets or cash. And there are also limits on valuable items, such as art, collectibles, and jewellery. That’s why Airbnb recommend taking out insurance from a home insurer for full protection.
For confidence that you’ll be covered if a guest damages your home, you need comprehensive insurance, covering you for accidental and intentional damage caused by paying guests.
3) Take out Hosts Public Liability Insurance
Last week reports emerged of a prisoner in Wales who successfully sued for damages of nearly £4,000 after he tripped and hurt himself during a power cut in his cell. It provoked calls that our compensation culture is getting out of control and is a great illustration of why you need to consider protecting yourself from claims for damages if you are renting out your home to a paying guest.
Guests can sue you if they or their property suffer any damage or injury whilst in your home. Public liability claims vary, covering everything from breaking a wrist after tripping on an uneven floor to damage caused to clothes by a faulty washing machine. For total peace of mind, public liability insurance will cover your legal expenses and pay out for any damages awarded if someone makes a claim against you.
4) Get peace of mind at the best price
If your current insurer can’t cover you for renting your home through Airbnb, or you’re looking for a better price, speak to a specialist insurance broker, like Park Insurance. Our expert team has been helping the hospitality industry for 30 years to get the best deals and the right level of cover and we’ve seen a surge in homeowners needing better protection to cover hosting.
We are the preferred broker for a number of the UK’s leading insurance companies, and scour the market for the best price deals that will give you the level of cover you need.
Click here for a no obligation quote.