What kind of Host are you?

October 23, 2016

Insurance for hosting is a mine-field.  

The point of difference between standard Landlord insurance and what an Airbnb host needs is embodied in 2 small words: SHORT STAY.

 

While there are lots of Landlord insurance products out there, most of them won't allow short stay letting;

Of those that do, some are very expensive, some have limitations surrounding number of days that you can let the property, some won't allow subletting - the devil is in the detail and that's why it can be dangerous to DIY.  

It helps to understand what kind of host you are.  There are lots of different hosting scenarios, and your insurance policy needs to cover you for that specific risk:  What kind of Host are you?  This explainer will help you to understand your own hosting scenario, which will help you to have that discussion with your insurer or broker.

  1. In-Home Host - Owns home & lets room(s) in their primary residence to short-stay guests.
    They are in residence while they host guests

  2. Off-site Host - Owns Apartment/Unit or holiday home & lets whole property to short stay guests. 
    Guests have exclusive use of the property.

  3. Periodic Host - Owner Occupier who only hosts while away from the property, ie: on holidays.  
    Guests have exclusive use of the property 

  4. Subletting Host - The Host is the long-term Tenant who is subletting the property on the short stay market. Both Landlord and Tenant Host need insurance

  5. Landlord with a long-term tenant who is subletting the property on the short stay market (see 4. above).  Not all Landlord insurance will cover this scenario.  Tenant also needs their own insurance that allows subletting.

When you open up your home to paying guests, you are also exposing yourself to additional risks. Make no mistake - your House & Contents insurance will probably not cover you for guest-related claims so you need to consider additional insurance.  If you are listing on Airbnb you will be covered by their Host Protection Insurance, but that only covers you up to $1 million and in the event of a serious claim such as personal injury, that may not be enough.  

 

Yes, it's complicated.  A broker can advise you on the best product for your situation.

 

DISCLAIMER

This advice does not take into account the reader’s particular objectives, financial situation or needs.  For this reason, before you act on this advice, you should consider the appropriateness of the advice taking into account your own objectives, financial situation and needs.  Before you make any decision about whether to acquire a policy, you should obtain and read the product disclosure statement for the policy.

 

To discuss your personal insurance needs, please email veronica@ceneta.com.au 

 

Ceneta Insurance Services Pty Ltd ABN: 78 133 436 254 

PO BOX 178 Altona North VIC 3025

Level 1, 96 Wellington Parade, East Melbourne VIC 3002

Authorised Representative No: AR 332815 of PSC Connect Pty Ltd

ABN 23 141 574 914 AFS License No 344648

 

 

 

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