Home Insurance

[Robert246]

Hi,

We are hosts and are due to renew our household insurance policy.

Do we have to advise our insurance company we are doing Airbnb and can anyone advise insurance companies in the UK that will include cover as an Airbnb host.

Best Regards,

Bob

[Victoria57]

@Robert246 you cannot just assume your current home & contents policy will cover you for Airbnb hosting, the chances are it won't. So you must advise your insurance company otherwise the chances are they will reject any claim.

Earlier this summer Admiral started offering policies specifically for Airbnb hosts but it is fairly restrictive. You can see a lenthy post I wrote about this here. The main problem is the 90 day maximum hosting in any year and it must be your main family home. Next year I fear we will need to move to a guest house policy - more expensive - although this year the Admiral policy has been fine for us.

You have to call them on 0330 33 35 502 (Quote HOST) , you cannot take out this policy online.

[Robin4]

@Robert246 @Victoria57....I believe there is a company called 'Towergate' that are offering specific hosting insurance in the UK. I did read a review on them earlier this year and what they were offering sounded positive. You can Google them.

Specific hosting insurance has been available in Australia for more than 18 months and we have had a chance to see how it works but it’s how these insurers will handle claims that is yet to be tested!

There are a number of things that must be considered where hosting insurance is concerned,

1/. Your existing general insurer will (in general) cancel your policy if they become aware you are hosting because you have altered the risk they accepted when they granted you cover! At the very least they will reject any claim relating to hosting!!

2/. Hosting insurance does not replace general insurance! It does not cover disasters or natural events, or damage/loss due solely to the owner. It only covers issues a guest is likely to cause in the insured space.

3/. Hosting insurance will not provide liability cover beyond the perimeter of the insured space. In other words if you allow guests to use your pushbikes, take their dog for walk....any activity where the guest uses something of yours in a public space there will be no Liability cover. And damage waivers have been found wanting in a legal sense...don't depend on the signing of one!

4/. You must ensure that you have relevant approvals from local government/ Condo or Strata management or landlords to short term rent. These insurance companies will gladly take your premium but they will reject a claim because you were performing an 'illegal activity' in the insured space even though they accepted the risk.

These four points I have learned from direct conversations with representatives of the 2 major host platform insurers in this country, so it is not just heresay......

Good luck with your insurance...it is just so important to get it right...I have seen what happens when you don't!

And it would be nice if you could keep the community abreast of any information you can learn. Cheers.....Rob

[Margaret168]

Does anyone have any other information to provide on this?  I am in a triplex and one of the owners if making a big fuss about the risk to insurance.  Have others taken out any additional coverage?

[Robin4]

@Margaret168

There has been a lot of talk about insurance Carole and this is why.

When you belong to a home community, in other words a condo/strata, shared building development you void the insurance for the whole complex, not just your unit/apartment by short term renting. The reason for this is, you have altered the terms of cover that the insurance company offered when they granted cover for the development.

Insurance companies offer cover to long term rentals because the tennant is know to them. With short term rentals the insurer has no idea who is in their insured space or what the risk is to that space, and that is why companies will cancel insurance cover as soon as they find out that short term renting is taking place in the development.

I cannot tell you what the way around this is because it differs from company to company and in various countries. Insurance is based entirely around risk, and all I can suggest is you approach the other building owners and ask if a solution can be found and collectively approach an insurer who understands the risk and will accept insurance where short term renting is taking place. It can be done and it could possibly be in all owners interest to do it, premiums my be a little higher to cover the additional risk but the alternative is to either stop hosting or have the other owners force you to stop.

I am sorry I cannot be more positive to you Carole but this is the situation, and why it is so!

Cheers.......Rob