As you probably already know, Airbnb can be a way to make a little extra money by turning your home into a mini hotel by putting up guests for a night or two.
However, you should be aware that in doing so you could actually risk invalidating your home insurance policy or if you haven’t mentioned it to your insurer and something went wrong, you might find they refuse to pay out on the claim.
The majority of standard home insurance policies don’t cover paying guests or lodgers. This is because the insurers take into account how many people live in a property and how it is used when providing you with a policy. The degree of risk is increased by letting out rooms on a short-term basis that standard home insurance policies just aren’t designed for.
Airbnb do provide Host Guarantee to protect your home against accidental damage at no extra cost. However, this guarantee does not cover such things as cash, collectibles, rare artwork, jewellery, pets or personal liability. Also, if someone staying within your home were to injure themselves and you were deemed at fault, the costs could run into the thousands – which would need to come out of your own pocket if the claim were refused by your insurer and Airbnb’s own policies fell short.
Basically, if you are thinking about putting your home up on Airbnb, you should speak to your home insurance provider beforehand. Your insurer may ask you to pay a higher premium to cover the additional risk or they may not be able to provide you with cover at all.
If that is the case don’t worry! As a broker, we have access to insurers who are able to provide you with the cover you would require.