What are the Home Insurance Rules for my Airbnb Property?

image of a law book

If you’re becoming a host for the first time, then there are quite a few legal hoops to jump through. That’s why many hosts turn to property management services, to make sure they don’t forget anything crucial. Don’t forget that by listing your property on Airbnb, you are effectively renting out your pad to strangers. While you’d like to trust every guest who comes to stay, you know you can’t. That’s why you need specialist home insurance to protect your nest and all of your belongings.

Every home insurance policy is different, but you will need to make sure you contact your current insurer and inform them of your plans to rent out the property. You then have two choices: see if they can extend their policy and upgrade to premium cover, or cancel your current insurance and use a specialist home insurer for people renting out rooms within the property.

What type of home insurance do I need?

You need to make sure your insurance policy covers you for renting out a room or renting out your entire property – whichever you are advertising on Airbnb. If you rent out all or part of your home without informing your insurer, the policy can be invalidated. You’ll find that most mainstream insurers won’t cover you for inviting guests into your home – so you may need to contact specialist insurance companies such as Home Protect and Insurance Choice.

However, even when you have a suitable policy in place don’t presume that you are covered for all eventualities. Some home insurance policies don’t cover theft or accidental damage by guests – which is a primary concern for many hosts.

Airbnb Host Guarantee

When you list a property on Airbnb you’ll notice the website promotes its host guarantee – which covers up to £600,000 of damage caused by naughty guests. However do not rely on this as your insurance policy! You still need to inform your current insurer, and if you don’t you could be in trouble. Moreover, the Airbnb guarantee isn’t exactly comprehensive and if you read the small pint you’ll find it doesn’t cover artwork, cash, jewellery, or fire and flood damage.

Weeding out bad guests

That’s right – even when you upgrade your insurance, you can’t always rely on your insurer or Airbnb to cough up when something goes wrong. That’s why it’s essential to try and vet guests at the booking stage, and ensure you only invite the best type of people into your home. If only there was a way to do that…. (spoiler alert, we do!) As the experts at Hostmaker deal with all guest communication, we can weed out any potential bad guests to limit the overall risk to your property.

Got any more questions about becoming a host? We’re here to help!

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