Does Your Property Insurance Cover You for Airbnb?

Airbnb has over 650,000 hosts worldwide and, if you are one of them, ensuring you have the right insurance for your property is crucial.

A global company, Airbnb helps members arrange temporary accommodation solutions in over 191 countries. This online marketplace makes board and lodging, homestays and travel experiences readily available to users, all while assisting hosts in gaining additional value from their property.

The substantial growth of the sharing economy in recent years has led to the emergence of an incredibly diverse, widespread sector that can offer immense benefit to both guests and property owners. It is important that, in response to this advancement, cover providers continue to adapt and refine their products to meet modern demands.

In a recent survey, it was found that 54% of accommodation hosts who have at least one Australian property listed on Airbnb were unsure about whether they had adequate cover. By determining the extent to which your property is protected against unexpected events, you can proceed with home-sharing activities in confidence.

Once a property has been listed on Airbnb, the owner is offered Host Protection Insurance at no additional cost. It is, however, essential to note that this cover is not as comprehensive as a Home and Contents or Landlords Insurance policy. The cover provided by Host Protection Insurance is not all-inclusive and, because of this, may still fail to account for particular incidents.

With Host Protection Insurance, you can gain up to $1 million in liability coverage for each occurrence involving property damage claims or third party bodily injury. However, in most cases, you will not be covered against malicious damage, theft, damage resulting from natural disasters, auto accidents such as vehicle collisions and any consequential legal expenses.

Those who explore alternative cover options need to ensure that their Home or Landlord Insurer is made aware of their properties use as an Airbnb. If such information has not been disclosed then, regardless of whether an incident involves Airbnb guests or not, the insurer holds the right to decline any claims lodged by the host.

It is not uncommon for insurers to offer policies that do not cover properties that have been listed on Airbnb. As such, when searching for your perfect insurance solution, you may find seeking professional advice and assistance particularly advantageous.

For more information, get in touch with your insurance advisor.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.