Check your insurance before letting your home for short-term holiday
Companies like Airbnb have revolutionised the way modern travellers look for accommodation. While hosting holiday makers is becoming increasingly popular with Australian listings on Airbnb doubling in the last 12 months, it is also noted that hosts need to be more careful regarding the terms of their home insurance policy while entering into such an arrangement.
- Compare home and contents insurance policy features of major home insurance companies here
Since insurers require you to inform them about any change in your circumstances, if you sublet your property without notifying them, your insurance claim can be invalidated in case something goes wrong.
So if your guests trash your home or cause damage to common property like the building lift or swimming pool, your insurance claim could be rejected by the insurance provider, according to Domain.com.au.
If you want to make sure your house and its contents are covered, you should let your insurer know and get an approval in writing before you rent out your home.
While Airbnb has a $1 million Host Guarantee fund, which covers all Aussie hosts, even if they don’t have insurance or permission from their landlords to sublet their homes for short stays, the company’s website recommends hosts to acquaint themselves with local insurance laws.