Insurance for AIRBNB

I know there's a few people on here who are air BnB hosts.
Can I ask who you use for insurance.
It has to be short term rental / holiday insurance is that right?

 

We used Terri Scheer - and they were fine with short term letting.

 

Thanks
I got a quote from them. Seems pretty good.

 

Does anyone think Landlord insurance is worth it for a City Studio in Airbnb?
The only Company i can find is Terri Scheer at $283 on $250 excess !

What am i exactly insuring against ?

 

I would check that the TS policy insures a AbB event as it may not be defined as a tenant / lease etc. My reading on lease is :

For permanent tenancies this is the contract in place between you and the tenant to rent the property in accordance with the Residential Tenancy Act in your state or territory.

A Holiday let property is....this is a policy quote...

What we do not cover We do not pay any amount for loss of rent in relation to: ◆ A holiday let property.

All the defined events refer to tenant...So does TS accept that the property through AbB meets a defined letting ?. And then the Duty Of Disclosure which allows Vero to opt out of any claim.

AirBnb insurance isnt something to buy online

 

Just make sure Airbnb is allowed by the body corporate and/or local council.
If not, your insurance may not cover you.
Marg

 

I would have thought to make sure the insurance policy covers you would come first.
The insurer doesnt mention council or strata.

 

I think you need a Terri Scheer short stay policy to cover airbnb rather than standard TS landlord insurance.

 

The TS short stay policy is limited to a licensed real estate agent managed property or onsite PM.

 

I don't think this is right- per my PDS

"This Policy is primarily designed to provide cover for landlords of privately managed residential rental properties whose tenancies are governed by the Residential Tenancy Act. For an additional premium, we can extend cover in this Policy should you elect to also use your property as a short term rental / holiday home."

But what you said worried me so I called them up to check- but they confirmed, even though we are self-managing and it's short stay, we are still covered.

 

But you had to check.....Many policies dont have that extension cover.
Important you check definition of what a short term rental / holiday home means. the U/Writer should agree to Aibnb and Stayz as an example. If it still refers to a lease etc there could be a dispute when claiming.

And the Vero policy is a good example - Secure LL policy. It specifically has two clauses of concern :
1. Rental tenancy refers to a min tenancy agreement of 6 months. So almost no stayz or Aibnbn could ever be covered; and
2. Rent loss is limited to tenant death and they pay only after 4 weeks. That would excluded most airbnb or stayz use.

 

Terrific must read article by Canstar here Holiday Home Insurance: Insurance For Hosts On Airbnb and Stayz

Spoiler alert: What Canstar says about most LL policies.....It probably doesn’t cover them

Their comparison sadly doesnt review all the available short stay policies. Short stay polices by EBM, NRMA/IAG, TS exist. There are others too.

 

Good luck with Airbnb. Unless you are hosting in YOUR HOUSE expect to have inconsistent rentals, high maintenance costs and some groups who will destroy your place.
Short term rentals may seem to be a goldmine but end up a curse due to landlords having rose coloured glasses on when they look at the rents.

 

I've stoped air BnB now but it was fairly consistent income. Had absolutely no maintance issues. Everyone looked after the place and cleaned up after themselfs. And it was MY house but not my PPOR.
I would highly recommend Airbnb I just couldn't be bothered with all the cleaning realy.

 

Any clients who do it generally report high yields and havent noted major concerns. Quite the contrary - Some say their maintenance occurs on the fly rather than one big one between tenants eg Oven, dishwasher, dryer get little use etc.

A "party house" may make a poor AirBnb in any event. Eg a coastal house, apartment etc with a pool and outdoor areas etc. Its asking for such groups to misuse it and may be seasonal.

 

Thats why after the first year I outsourced the majority of the cleaning to others!

 

Ceneta Short Term Accomm. Came in cheaper than EBM standard Ins. Legal liability $20m. Loss of rent $50k, Tenant damage $50k, Contents $30k. Got it recently - no experience trying to claim from them though.

 

I had terri scheer for a number of policies for Airbnb, they give a $20 discount for 3 or more.
Haven't had to claim yet.
No issues with self managing.

I specifically asked about what they need to see when you make a claim, as with Airbnb, you can write anything in your name field. They mentioned only the reservation details.

 

I appreciate this is a bit of an old post now but it came to mind as we were providing an article around insurance for Airbnb (and similar) for a magazine.

The article reinforces that "if a landlord is looking to switch their property from fixed term to short-stay, they need to make sure they switch their landlord insurance policy too. There are different landlord policies for different types of letting because each type of tenancy agreement has its own unique risks and having the wrong policy could prove costly.”

In our case this means using RentCoverShortTerm which is specifically designed for this type of property.

The other area that is covered is where a permanent tenant (on a fixed term lease) may sublet a property without the landlord's/agents consent by putting it on Airbnb or similar. We would think permanent letting style policies should respond to claims in these cases providing the landlord was not aware it was being done, but can only actually speak for own policies so can confirm that RentCoverUltra and RentCoverPlatinum would. With other landlord policies you would need to check.

 

does anyone (non strata) just get building insurance and rely on air bnb insurance for other crap?
just paid me $900 to EMB, ouchy (build value = 180k)