Insurance... again!

[Maree23]

Sorry to inflict insurance chatter on everyone AGAIN! But I just had a positive experience.

I really became completely befuddled by what to do with insurance!  I ended up taking out sharecover as I had guests coming in for 2 weeks and I wanted to make sure there was something in place.  However, when I read the policy it seems they don't cover for extreme weather events.... I'm in a cyclone area! Eeek!

I then rang QBE, whom I currently have my Home and Contents Policy with, to query them on what options I had.  (I had previously called them and been advised that I needed Landlord insurance but then been told it wouldn't cover a whole range of things. )  Anyhow .... turns out my current policy covers Airbnb/short-term guests!!! Yay!! 

Our situation is that we are still staying at the house off and on as we go away for work, so the house is covered when we are there too.

This hasn't been added to their product disclosure statement yet as it's a new thing so I asked her to email me a confirmation and the wording was as follows:

Non-negotiable condition: YES we do insure properties being listed on Airbnb as long as the whole property/house must be rented out as a single entity. We do not allow homes being rented out by owners on a per room basis. This is unacceptable.

So for me this is great news and I also received a refund from sharecover when I cancelled.  Best day ever!

[Ben551]

Interesting @Maree23 - it is the complete opposite in New Zealand.

In NZ, home insurers will only cover STR hosts under their existing home owners policy if less than 50% of their home is being used as an STR.  This means that only people who are renting a few rooms of their total house are covered.  Those that rent the entire property are not covered and are required to get Landlords insurance.  Also, existing home owner policies only cover accidental damage.  So if anyone intentinoally trashes a property with a party, it's not covered.

So yeah, from what you are saying it looks like Australia and New Zealand have insurers working at polar opposites to each other.

[Maree23]

Oh STR ... I like that! Good to know the lingo. 

I feel the NZ approach makes more sense. Surely if a host is present there would be less damage so a better option for insurers?

I have no idea what my (first ever!!) tenants are doing right now. I want to contact them and find out how their first night was but I recognise that is creepy. 

Oh and you commented on my plastic free toiletries post the other day ... I got it sorted! The local soap lady does a guest option which is great and all in recycled cardboard... woo hoo! Smells yummy. 

[Denise80]

Hi @Ben551, 

We are in NZ, and our insurance policy is a standard Home and Contents. We host our holiday home out and we are definitely covered. Did not have to take out special renters insurance at all. Like @Maree23 I asked them to email me confirmation so that I have it in 'writing'. In fact I had to make a claim on it when someone damaged the benchtop and they paid out without any problem whatsoever. 

Just thought you might like to know in case youare paying for extra cover you didn't need to 🙂

[Ben551]

Hi @Denise80 - thanks for the info.  We are with AA and have a standard Home and Contents policy.  Because we rent out less than 50% of the floor area of our main property, we don't have to have special renters insurance.  However, we are considering getting extra insurance following the warnings from AA and other insurance companies (referring to NZ Herald articles).

As I said though, standard policies in NZ don't cover intentional damage, they only cover accidental damage.  It's like that across the board, hence the articles last year in the news and warnings to hosts.  If someone hosts a party in your house and causes damage, it's considered "intentional" by insurers (i.e. wilful disregard and so on).  Likewise if they commit arson and burn your house down intentionally, it's not covered.  So I recommend considering carefully whether you are happy with that risk. 

We haven't decided yet, I think we're going to explore what additional cover costs for intentional damage cover and take it from there.. I suspect it will be terribly overpriced...

[Mark934]

Hi Denise
 I am looking at insurance options now and would be interested to know which company you went with please ?
Thanks
Mark