Renting out your home on AirBnB? Make sure you check your insurance
AirBnB has been in the news lately due to the death of a father at an AirBnB rental in texas, bringing to light the risks that hosts face if their home and contents policy doesn’t cover these kind of incidents.
According to Domain, in the Texas situation the AirBnB home owner’s insurance covered compensation to the family but when it comes to insurance policies in Australia the majority of insurers don’t cover Airbnb hosts and their tenants.
While AirBnB does have a complimentary Host Guarantee which will reimburse the host for up to $1,000,000 AUD in property damage, it doesn’t cover personal liability.
AirBnB advises on its website, “the Host Guarantee is not insurance and should not be considered as a replacement or stand-in for homeowners or renters insurance.”
“We strongly encourage all hosts to review and understand the terms of their insurance policy and what it covers and does not cover. Not all insurance plans will cover damage or loss to property caused by a guest that books your space.”
Terri Scheer Insurance distribution manager Belinda Butler told Domain that in some circumstances, being an Airbnb host could make an existing insurance policy void.
We recommend checking with your insurer to see whether your current policy covers incidents that occur from renting out your home on AirBnB.
To compare home and contents policies visit our comparison hub here.