Are you renting your house out over holiday periods? Doing a house swop perhaps? Eiher way, you should read on.
Peer-to-Peer Property Rental
Peer-to-Peer property rental is when an existing homeowner makes their house available for holidaymakers to rent for a short-term stay basis.
Websites such as AirBnB and Stayz provide platforms for anyone that has a spare room in the city or a vacant holiday house by the beach to rent out their property to anyone online. The process is very simple, quick and highly appealing for homeowners looking to make some extra revenue.
Peer-to-Peer Property Rental and Insurance
You may be asking, ‘what happens if the holidaymakers damages my home?’
Popular website, AirBnB, provide a $900,000 Host Guarantee to homeowners for every booking on AirBnB, free of charge. The guarantee will reimburse you for up to $900,000 AUD in damage to your eligible property.
Initially the AirBnB guarantee may sound like it is enough to protect your property however if you read their terms and conditions, the guarantee will only protect your property from ‘guest damages’ and does not protect your cash, valuables, pets, personal liability and damages in shared/common areas.
AirBnB’s Host Guarantee should not be considered as insurance.
The trouble of Peer-to-Peer Property Rental
Despite the attractive idea of quick cash for vacant property space, if you are renting your property to a third party, there is an inferred contract at law. In other words you’re running your own bed & breakfast business!
What this means is that your homeowners Insurance policy will probably not cover property damage or public liability claims as a result of renting property out to holidaymakers.
If holidaymakers were to damage your property, steal your valuables or injure themselves on your property you may be facing hefty legal costs without short-term rental insurance.
Looking for a real solution?
The first step you should take is to discuss your homeowner’s policy with your current Insurance provider about short-term rental insurance. Most homeowner’s policies may not provide you coverage for short-term rentals.
With that in mind, if you are looking for a real short-term rental Insurance policy, Nepean Broker’s comprehensive and affordable Bed & Breakfast Insurance policy will protect your home from damages, business interruption, theft, legal liability and more.
For more information on our Bed and Breakfast Insurance policy or any other Insurance policy questions please contact Nepean Brokers at 03 5982 2330.