A standard home insurance policy is not appropriate for holiday lets as most home insurers won’t cover properties that are commercially let or left unoccupied for long periods.<\/p>\n
This guide provides an overview of the insurances available and what they generally cover.<\/p>\n
Reservations from Airbnb<\/b><\/p>\n
Airbnb offers hosts their AirCover for Hosts <\/b>which includes Host Damage Protection and Host Liability Insurance.<\/p>\n
Host Damage Protection <\/b>protects your place and your belongings if they are damaged by a guest during an Airbnb stay.<\/p>\n
What is covered?<\/b><\/p>\n
\u2022 Damage to your home, furnishings, valuables or belongings caused by guests (or their invitees)<\/p>\n
\u2022 Damage to parked cars, boats or other vehicles caused by guests (or their invitees)<\/p>\n
\u2022 Extra cleaning costs required to remove stains left by guests (or their invitees) or pet accidents, smoke odour removal, or when required due to additional unapproved guests<\/p>\n
\u2022 Income lost if you need to cancel confirmed Airbnb bookings due to damage caused by a guest (or their invitees)<\/p>\n
When you offer an emergency place to stay through Airbnb you\u2019re still covered by Host Damage Protection.<\/p>\n
What is not covered?<\/b><\/p>\n
\u2022 Damage from normal wear and tear<\/p>\n
\u2022 Loss of currency<\/p>\n
\u2022 Loss due to acts of nature (example: earthquakes and hurricanes)<\/p>\n
\u2022 Injury or property damage to guests or others (those may be covered by Host Liability Insurance)<\/p>\n
\u2022 Cleaning associated with normal checkout tasks (example: laundry, dishes or rubbish removal)<\/p>\n
Host Liability Insurance<\/b>\u00a0protects you against claims if a guest gets hurt or their belongings are damaged or stolen during an Airbnb stay.<\/p>\n
What is covered?<\/b><\/p>\n
\u2022 Bodily injury to a guest (or others)<\/p>\n
\u2022 Damage to or theft of property belonging to a guest (or others)<\/p>\n
\u2022 Damage caused by a guest (or others) to common areas, such as building foyers and nearby properties<\/p>\n
What is not covered?<\/b><\/p>\n
\u2022 Damage or injury resulting from something done intentionally<\/p>\n
\u2022 Damage to your place or belongings caused by a guest (that\u2019s covered by the Host Damage Protection)<\/p>\n
Reservations from Booking.com<\/b><\/p>\n
Booking.com offers hosts their Partner Liability Insurance <\/b>which protects you against third-party lawsuits or liability claims for bodily injury or property damage incurred during the dates of a reservation made through Booking.com.<\/p>\n
What is covered?<\/b><\/p>\n
\u2022 Bodily injury (e.g. if your guest breaks their arm slipping in the shower and holds you responsible.)<\/p>\n
\u2022 Third-party property damage (e.g. if your guest accidentally leaves a tap running and causes water damage to your neighbour\u2019s apartment below)<\/p>\n
What is not covered?<\/b><\/p>\n
\u2022 Damage and\/or harm caused by pets (e.g. your guest\u2019s dog injures a neighbour)<\/p>\n
\u2022 Your own personal injury (e.g. you break your arm tripping over a step at the property)<\/p>\n
\u2022 Damage or injury from something done intentionally (not an accident)<\/p>\n
\u2022 Your own personal property (e.g. a guest breaks your TV or table)<\/p>\n
Things to Consider<\/b><\/p>\n
Unfortunately, insurance doesn’t cover every eventuality. You should make sure you read your holiday let insurance policy document in full before purchasing so you know what will and won’t be covered.<\/p>\n
While you want to keep costs down, you also need the best cover possible. You must ensure you have the right cover so that ultimately – your claim gets paid<\/p>\n
Key points:<\/b><\/p>\n
\u2022 Buildings insurance will not cover general wear and tear and routine maintenance.
\n\u2022 When it comes to buildings insurance avoid underinsurance, it’s important to ensure the sum insured is enough to cover the total cost of reinstating your holiday let. Failure to insure for the full reinstatement value could result in the claims settlement being reduced.
\n\u2022 When it comes to insuring your contents, think about how much it would cost to replace all the items in each room on a new-for-old basis.
\n\u2022 Contents insurance will not cover breakdown of household appliances and guests’ possessions aren’t typically covered by contents insurance.
\n\u2022 For contents insurance single items are only covered up to a certain amount.
\n\u2022 When it comes to insuring your contents, think about how much it would cost to replace all the items in each room on a new-for-old basis.
\n\u2022 If your holiday rental is pet-friendly ensure you are covered as very few insurers will cover damage caused by pets.
\n\u2022 You can’t guarantee that guests will lock external doors and windows at night or when they go out, so ensure your insurance covers theft by ‘non-forcible entry’.
\n\u2022 If you use a keysafe to store keys for guests, check any if endorsements apply.
\n\u2022 Check for any security measures required, such as specific locks. Failing to implement the required security is likely to invalidate theft claims.
\n\u2022 Is theft by paying guests covered? Most insurers exclude it as standard.
\n\u2022 It’s the guests responsibility to take out travel insurance to cover their possessions whilst at your holiday rental.
\n\u2022 How much loss of rent is covered, it’s usually a % of the sum insured or a specified amount.
\n\u2022 What unoccupancy clauses, winter warranties and restrictions apply which could invalidate your insurance? How often do you have to inspect your holiday let when it is empty? Do you have to leave the heating on to maintain a minimum specified temperature or turn the water off and drain water tanks\/pipes when no one is occupying the property?<\/p>\n
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