Does My Home Insurance Cover Me for Airbnb Rentals?
Caeva O'Callaghan | June 10th, 2020
You’ll probably need additional cover if you want to rent out your property on Airbnb. Hosts face additional risks, and ensuring you have the right coverage can save headaches down the road.
Any standard home insurance policy is not likely to cover you for all the risks you will face. You’re putting your home and your belongings at peril when you rent out your property on Airbnb, and not just from wild house parties.
Your insurance may not cover you for paying guests, or they may need to know in advance. It all depends on the maximum length of time guests will be staying, and it’s always a good idea to consult your home insurance in advance.
In this article, we’ll answer questions like:
- Does my home insurance cover my Airbnb?
- What are the risks to home insurance if I rent out my property?
- Do I need to tell my home insurance I’m renting out my property on Airbnb?
The biggest risk here is against the public liability section of your home insurance policy. This is the biggest and most dangerous risk, involving guests being injured on your property.
Are Airbnb guests covered under a standard home insurance policy?
No. Under standard home insurance policies, Airbnb activity or paying guests are not covered, meaning that your home cover may not indemnify you if you have paying guests in your home via Airbnb. If one of your guests had a personal injury such as tripping and falling down the stairs on your property, you’d be liable.
So, if you have paying guests in your property through Airbnb, you will need adequate cover to protect you if someone is injured.
If you’re buying a property specifically to rent out, through Airbnb or otherwise, you need to know that not all insurance companies are willing to insure rental properties. It is important to disclose the home will be rented out at the quotation stage. Who you rent to will also affect your premium: for example, a family may pose less risk to the fixtures and fittings than a group of students. However, if you have an Airbnb, you won’t be able to control who makes a booking. For this reason, it’s not easy to predict what kind of risk you’ll have on any given week, which increases the risk overall.
Only Allianz provides automatic cover for paying guests once the guest is not staying for longer than 60 days. Other insurance companies need to know in advance. The best idea is to tell your broker or insurer in advance.
What are the risks of renting out my property?
Your buildings and contents will be covered by your standard home insurance policy. However, there are other risks when renting out your property that normal insurance will not cover, and exclusions may apply. For example, many providers exclude theft cover if you have a lodger or paying guests. The good news is, many don’t. For instance, 123.ie’s standard home insurance policy will cover you if you have up to two paying guests in your home at any one time. But if you don’t tell your insurance provider about your intentions to become an Airbnb host, your cover may be invalidated.
Not only that, but insurance companies are likely to exclude accidental damage cover for contents, money and high value items you leave in your home. If you’re renting out your property via Airbnb, it’s a good idea to remove anything valuable before guests move in.
Along with theft, another big risk is public liability. This is the section of your policy that has the potential to cost you huge sums of money. For example, if an Airbnb guest closes a door on his finger and makes a personal injury claim against you, your insurer will likely turn down the claim if you have not advised that your property is on Airbnb.
Specialist Airbnb insurance policies
With the rising popularity of Airbnb, providers have jumped on this new market segment. Recognising the need for a unique kind of policy, many providers are offering specialist insurance for Airbnb hosts. This includes common risks Airbnb hosts face, such as loss of rent, fridge and freezer contents, and damage to locks.
It’s also worth noting that Airbnb have their own insurance in place. Airbnb’s Host Protection Insurance will act as primary insurance, and it does provide liability coverage to hosts and, where applicable, their landlords, subject to certain conditions, limitations, and exclusions.
However, before you rent out your property you need to consult your broker or insurance provider about how exactly Airbnb’s policy interacts with the home insurance you already have. You may still need to buy additional cover to make sure you cover any gaps. Some policies protect homeowners and renters from certain lawsuits that result from injury to a visitor, while others do not.
It should go without saying that to avoid insurance headaches, and be a responsible host, you should have appropriate security measures in your rental property. This means up to date smoke alarms, fire extinguishers, and providing a list of emergency numbers.
If you are renting your home to AirBnB guests, call us to make sure you are covered
If you are currently renting your property to AirBnB guests or thinking about doing so, call and talk to our insurance experts and we can advise you on the appropriate level of cover you need to have in place to ensure you and your home are adequtely covered. You can call us anytime between 8.30am and 5.30pm Mon-Fri on 0818 224433 or 042 9359051.
If your home insurance policy is up for renewal, you can get a home insurance quote directly online. We compare house insurance in Ireland from 12 of the leading providers to help find you the right cover for your needs.