Airbnb – Implications for home insurance
Airbnb is an amazing business success story – there are now more than four million homes listed around the world. But homeowners who list their property on Airbnb or similar sites need to think carefully about their insurance position, as when they have a tenant in their property, they may not be insured under the terms of their cover.
Typical contents insurance won’t necessarily pay out if you make a claim on damage caused while your property was being let out. So, if you’re already a host on Airbnb, or thinking of joining the network, then you will need a comprehensive insurance policy that specifically allows you to rent out your property for periods of time, or covers you if you have tenants who sublet.
Airbnb do provide what they call a host guarantee, but make it clear that it isn’t an insurance policy and they recommend that you take out your own separate cover. There are now new top-up policies on the market to protect hosts. They provide cover for homeowners, tenants and landlords who let rooms, annexes or whole houses, and some allow you to increase your cover on a short-term basis.
Note: it is vital that homeowners considering letting a room or property in this way, seek consent from their mortgage lender first. Restrictions may apply.