Have you thought about becoming an Airbnb host but have been put off by all the insurance jargon?
This simple guide will hopefully push your worries aside and help you to take the plunge into the world of Airbnb hosting.
What cover does Airbnb offer?
Airbnb offers some coverage through their Host Guarantee which theoretically covers you for £600,000 of damage. But their cover is far from comprehensive. Airbnb does not cover cash, valuables or pets, so if a guest stole your money, injured your pet or damaged your family heirloom they would not pay out. (Why you would leave money, heirlooms or your pet in a property you are letting out is a different matter…)
Airbnb is very clear on what is covered and what is not, so make sure that you read the full terms and conditions carefully.
“The Host Guarantee is not insurance and should not be considered as a replacement or stand-in for home-owners or renters insurance. Hosts may want to consider independent insurance to cover valuable items like jewellery, artwork, or collectibles which are subject to limited protection under the Host Guarantee. See our Host Guarantee terms for more details.
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.” - Airbnb
Airbnb have recently introduced public liability insurance in the form of a Host Protection Policy. This is to protect the landlord/hosts against claims made against them by a guest in their own home. This has certainly encouraged more hosts onto the site who were previously concerned about the insurance cover provided. This will only cover you for claims that arise within a guests stay and not outside of it.
What cover should I have as a host?
There are a few things that you may want to cover yourself and your property against as a Airbnb host.
Airbnb does cover some of your contents within their guarantee but if damage is caused outside of the Airbnb booking then this is not covered. There are lots of different types of contents cover available, you just need to choose what is best for you!
Airbnb provide limited accidental cover for any damage caused during a guests stay in your property. During periods where guests are not staying you are not covered for accidental damage, therefore, it may be worth having this in place on your policy too.
A third party may have an accident or get injured whilst at your property and decide to make a claim, you may be held liable for this in which case you’re legally required to provide compensation. Liability insurance is designed to cover the compensation that may need to be paid to the third party so that you do not incur the cost yourself.
Loss of Booking Income
This policy will help you claim back some of the lost income if an insured event, such as a fire, means that you cannot host guests for a while. There is a limit on how much you can claim but it is worth it if you are reliant on the income from your guests.
This cover is very useful to have for any emergencies that may occur in the property. There is usually a 24-hour number to call, if for instance a pipe burst, they will send someone out to fix the problem before there is any more damage caused to the property. As an Airbnb host this could be vital if there are guests staying in the property and you are reliant on the income.
Airbnb Host Insurance Recommendations
We would recommend Guard Hog for those hosts looking to cover themselves just when a guest is staying. According to their website their cover is specifically designed for the sharing economy to replace the parts of your current home insurance that are made invalid by sharing your home with paying guests. Their cover is offered on a day to day basis to allow for flexible and seamless insurance while you have guests staying!
HomeProtect allows you to insure your Airbnb property and protect yourself financially. It doesn’t matter if you are letting your whole house or just a room, they can provide a quick quote designed to protect your home and its contents. To get your free quote click here!
Once you have insured your home use our easy hassle-free management services to optimise your earnings. We will manage everything for you including getting bookings, liasing with guests, cleaning and maintenance. You can relax in the knowledge your property is in safe hands. Our fantastic meet and greet service, hotel-standard cleaning service and added extras guarantee happy customers and great reviews.
Please be clear - the above is not legal advice, we have not independently verified the links and you will need to check yourself for accuracy.