If you’ve a spare room or are planning to leave home to take your own holidays, Airbnb offers a relatively easy way of earning some extra cash.
But for all the millions of successful overnight stays, however, Airbnb hosts also have their fair share of horror stories – when seemingly “lovely” guests nevertheless leave their host’s home in a terrible state, costing thousands of pounds to put right.
Insurance
If you are planning on Airbnb-ing your own home, of course, you want to be counted among the millions of success stories rather than have the rogue guest or guests from hell – the trouble is that it might be difficult to tell them apart, until it’s too late.
That is why Airbnb-ing your home goes hand in glove with your arranging suitable Airbnb insurance to safeguard the precious contents of your home – not to mention its fittings, fixtures and furniture – against damage or even theft by irresponsible guests.
If you don’t get Airbnb insurance, you cannot rely on your standard home buildings and contents cover to protect you. This is because your home insurance is not designed to cover business practices, such as letting to Airbnb guests.
In fact, if you do use your property for Airbnb and don’t tell your home insurance provider, you could find that your current buildings insurance cover may even lapse.
What’s more, some policies may contain exclusions for short-term lets – especially if you’re only hosting occasionally. That’s why it’s essential to check the small print and speak to your insurer before listing your property online.
What about the Airbnb Host Guarantee?
Airbnb itself is well aware of the potential for a small handful of guests to cause damage to a host’s home and, therefore, offers a so-called Host Guarantee programme designed to compensate householders for damage that is caused in excess of any security deposit the host was prudent enough to require.
The maximum amount of compensation – some $3 million (approximately £2.26 million) – might appear generous enough, but it specifically excludes liability claims against you by guests who have been injured or had their property damaged, theft loss or damage to your cash or securities, jewellery, artwork, collectables, etc.
Neither does the Host Guarantee cover against what Airbnb designates fair wear and tear.
It’s also worth remembering that the Host Guarantee is not an insurance policy. It’s a discretionary programme, which means claims can be denied at Airbnb’s sole judgement. For landlords relying on predictable protection, this can be a significant risk.
Airbnb insurance
Given the restrictions of the Airbnb Host Guarantee, you may consider separate, specialist Airbnb insurance to be an essential safeguard.
Airbnb insurance – for homeowners and tenants alike – maintains the protection you need when you are Airbnb-ing your home.
Specialist Airbnb insurance typically may cover accidental and malicious damage, liability claims, legal expenses, and loss of income following a covered event. In some cases, you may also be able to add extras such as key cover or emergency accommodation if your property becomes uninhabitable after guest damage.
If you are considering putting your property on Airbnb, we have a number of Airbnb property insurance solutions available. So, please get in touch with us on 01702 606301 – we’d be delighted to help.
