If you are in the early stages of your Airbnb hosting journey or are considering becoming a host, you will probably have questions about holiday home insurance. Many people new to hosting are mistaken in believing that their home insurance will cover their holiday let. Unfortunately, this is not the case, and you will need to take out insurance specifically designed for holiday let properties.
Simply put, home insurance is designed to cover a holiday letting business and includes cover for several risk factors you wouldn't get with regular home insurance. For example, it covers property damage and provides public liability insurance if guests have an accident on your property.
It works by protecting you against certain financial risks that come with Airbnb hosting, whether that's a single holiday let or rental business. The risks associated with a holiday let are higher due to the property frequently being left unoccupied, the risk of property damage by guests, and the risk of a guest being injured while on the property. A significant feature of holiday home insurance covers public liability. Public liability insurance provides you with financial cover to protect you from any compensation you could owe in the event of a guest injury.
Different holiday home insurance packages will provide varying levels of coverage. But all insurance providers require the following details:
Investing in additional security for your holiday home, such as installing security cameras around entrances/exits and critical safes, installing a smart alarm system, and using smart light bulbs to deter thieves, will help lower your tax.
Also, ensure you give the most accurate figure for rebuilding costs if the worst happens. This is known as the 'sum insured' and relates to the total cost of rebuilding the property. You could be underinsured or overpaying on your premium without an accurate figure.
Each short-letting platform provides different insurance coverage for its hosts.
Airbnb: In the UK, Airbnb offers Host Liability Insurance and Host Damage Protection for up to $1 million. However, it does not provide comprehensive insurance, so you may want extra coverage.
Booking.com: In this article, Booking.com does not offer separate insurance protections for its property owners, so you'll need to have adequate insurance on your property in case of an accidental injury.
VRBO: VRBO provides hosts with liability insurance up to $1 million for all bookings processed online via the platform. If you don't already have a liability policy, this policy responds first if someone claims you. If you already have a liability policy for your holiday home, then consider this as additional coverage to what you have. It will respond simultaneously to your current policy, and both policies will contribute if a claim is made against you. It covers property damage and any guest injuries on your property.
Expedia: In this article, Expedia doesn't appear to offer holiday home insurance to their hosts, so you will have to arrange it separately.
With every property management company, you'll be required to have minimum coverage for public liability. Each company offers different insurance policies for its hosts, so it's worth knowing what level of insurance you require before choosing a management company.
As a general rule, if you hire a property management company simply for Airbnb cleaning or booking admin help, you will unlikely receive any insurance benefits. However, with a fully managed service that manages the entire hosting process, you can expect at least a minimal level of cover.
Pass the Keys uses the digital trust platform Superhog to support bookings across all platforms outside of Airbnb, including bookings generated through Pass the Key's new direct booking channel.
Superhog combines the vital elements of verification, virtual security deposit, and host damages insurance to support guest experience and client assurances of the risks involved with short let bookings. It's a cost-effective one-stop solution for trustworthy and safe property management. The service also focuses on risk prevention and offers landlords up to £1 million in Guardhog insurance. Please visit this blog post to learn about Pass the Keys insurance policies.