If you want to let your property on Airbnb, then your standard home insurance policy will not give you the cover you need. Instead, you will need some specialist home insurance for your Airbnb.
Why Won’t Home Insurance Cover an Airbnb?
If you let your home to paying guests, then you will expose yourself and your property to many risks that will not be covered by a standard home insurance policy.
These include:
- Accidental or intentional damage to your property, or to neighbouring properties and common areas.
- Loss or damage of guests’ property.
- Accidents or injuries sustained by guests on your property.
As the property owner, you could be held personally liable in any of these situations, and your standard home insurance policy simply would not give you the cover you need. But a dedicated home insurance policy for an Airbnb would cover any legal fees and compensation payments that may arise in the event of a claim.
Other Common Exclusions in Home Insurance Policies
Most home insurance policies will not cover you for accidental damage or wear and tear. But there are certain other common exclusions that would make a standard home insurance policy unsuitable for an Airbnb property.
For example, most home insurance policies will not cover you if your home is left unoccupied for an extended period, which is usually between 30 and 60 days. The cover will not apply if your home is unoccupied for longer than this.
There are many different ways to use a property as an Airbnb.
If you are letting a separate room or building on your property, such as a shepherds hut, or annex in your house, then it is unlikely that your property will be unoccupied for too long. Though it’s important to note that regular checks doesn’t always qualify as ‘occupation’.
However, if you want to list an entire property on Airbnb, then the property may be unoccupied for long periods throughout the year. Some parts of the world will only attract visitors during certain times. And there may be long periods where, for one reason or another, you simply struggle to attract any guests.
In any case, if your property is unoccupied for these extended periods, then your standard home insurance policy would not give you the cover you need.
What Home Insurance Do I Need For an Airbnb?
Specialist home insurance for your Airbnb should include the following core areas of cover:
- Host liability Liability – Cover for any accidents or injuries your guests may experience while staying on your property. This can also include cover for losses arising from your guests’ actions. For example, a guest might accidentally leave a door unlocked before they vacate your premises, which could put you at greater risk of theft or vandalism.
- Unoccupied property insurance – A dedicated Airbnb policy could cover your property for any periods where it might be unoccupied, even if you need to shut down your property completely at the end of the holiday season.
- Buildings Insurance – Cover for your property, along with any neighbouring properties and common areas, for any accidental or intentional damage from guests.
- Contents Cover – As well as covering your property’s fittings, furniture, and fixtures, your insurance can cover any items you purchase specifically for your guests to use, including bedding, cutlery, games etc.
How Much is Home Insurance For an Airbnb?
The amount you pay for your Airbnb insurance will depend on a number of factors:
- The type of letting – Are you letting a single room, or annex, of your house? Or is it a separate building on your property? Or are you letting your entire property? Each arrangement will bring different risks and considerations, all of which will affect the cost of your cover.
- The size of your property – The more people who will be using your property at any one time, the greater the chances are that something might go wrong. It will cost more to insure an entire property for six guests than it would, for example, a single shepherd’s hut for two guests.
- Your location – You may have to pay more for cover if you are based in an area with relatively high crime rates, for instance. Yet in this case, you may be able to make savings on your cover if you invest in extra security systems.
We Can Help You Get The Insurance You Need For Your Airbnb
If you are looking for home insurance for an Airbnb, we are here to help.
We can help you access the specialist insurance you need to cover your property on Airbnb, including host liability insurance, host damage protection, and comprehensive second home or holiday home insurance.