How to choose insurance for hosts in Australia?

[Justin166]

I have done research into insurance liabilities and risks in Australia for owners of short-term rental listings.

There is clearly a void when the home is BOTH lived in by the owner and also used for short-term rental property use.

1. Traditional landlord insurance policies do not cover this situation, ie if you are also living in the home.

2 Furthermore, a standard home building and contents policy is made void when you also rent out part of the home, insurance companies then regard it as then running a "boarding house".

This is a critical issue and I really need some support from yourselves or other members who can advise how to solve this issue.
otherwise there is liability for not only the homeowner but also for rental guests.

It seems the insurance industry hasn't yet evolved to deal with the situation, of a home being both a short stay rental property and owner occupied, which is becoming more and more predominant.
Thank you, Justin

[Wendy117]

I went with Ceneta again for Landlord and Home & Contents this year.  Still the best pricing and coverage with a single policy to cover myself and short term guests and they offer monthly payments.  Sorry to those of you asking for the phone number, i didnt see those posts.  Easy to find, just search google for Ceneta.

[Jo140]

Ceneta don't do room only while you are staying in the house though.

[Zoe0]

Hi @Wendy117 , 

I looked at Ceneta and the property needs to be a granny flat - they won't accept studios - to be a granny flat it needs to have gone through the council process of the $20K donation and all the other regulations. I was told short term rental is allowed in a studio for max 90 days continuous and if living on the property this STR can be used for 365 days a year. 

I can only imagine if in the unfortunate circumstances of  a claim the actual classification of the building will be used to prevent any payouts - and the policy therefore could be a waste of money. 

What do you think?

[Wendy117]

@Zoe0   My listing is a separate area in my home where I live - not a granny flat so those regulations do not apply to me.  I don't offer long term rentals. My broker changes coverage whenever there is a better offer and this year it is HomeBiz.  It is getting more expensive every year but i prefer the peace of mind that insurance gives.

[Patti-And-Marty0]

We are in Perth and have also looked at most of the companies already mentioned. I agree the industry is very slow to adapt to the need and what’s available seems to change every year. We  live downstairs and the Airbnb is upstairs and has a separate entrance. Almost went with BJS but found Unicorn Risk Solutions for $600 less and same or better coverage. Also it’s just one policy for entire house which should simplify things in the event of a claim. 

[Eva547]

Woolworths Insurance DOES cover STR… at 1/3 to 1/2 the cost of others commonly discussed.

BUT…. Only if you live on-site (same house OR secondary dwelling) AND. .. HERE IS THE CATCH… not more than 3 unrelated people. So there is much money to be saved for some.. if your rental only accommodates families.. or not more than 2 unrelated people. Oh! The jargon…. EDIT

UPDATE: RELATED is very broad in law and in common use, and even FAMILY (which they are not using) is broad;however, family is quite defined in law.

[Michelle2951]

I have been hosting our guest wing (separate entrance) and access to main house is locked off. There seems to be so many suggestions here. Is anyone else in my position, and has found appropriate insurance? My current insurer won't cover me with Airbnb.

[Gillian166]

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@Michelle2951 wrote:

I have been hosting our guest wing (separate entrance) and access to main house is locked off. There seems to be so many suggestions here. Is anyone else in my position, and has found appropriate insurance? My current insurer won't cover me with Airbnb.

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no, can't help but we do the same thing as you, in addition to 2 sep cottages on the farm that are airbnb. Going through the motions and it's a nightmare, so far the only thing we've found via a broker is with CGU and it's $5500! actually in total it's about 11K to insure our farm, buildings, equipment, public liablity and airbnb. 

We are still shopping around.......... will post back here if find anything. RACQ was a no go which is a shame as we have cars with them already. 

[Robin4]

@Gillian166 

Hi Gillian, we are back from the east.....and it looks like we brought their weather back with us!

Gill, have you given Sharecover a try? They are partnered with SGIC and you only pay for nights you host. I set and except a high excess which means my nightly premium is peanuts (can't be specific because everyone's situation is different, and I got my head ripped off once before quoting figures) and I set aside a personal fund from my listing amount to cover minor damage.

My primary insurer is RAA and there appears to be no conflict....although I have not had to put it to the test since I have been hosting.

Hey, how are your bookings holding up now the programming geniuses have tampered with the search page yet again.

For the life of me I will never understand why Airbnb go out of their way to upset their long term experienced, profitable hosts. Every time they tinker with the program they lose sight of the fact that we have to adapt what we do and say to accommodate their changes and work with them. They don't reward us, they punish us for making it work and being successful.

Because I don't automatically fit one of their tidy little nebulous search boxes my listing has dropped from the page 1 down to page 5 in our area. Listings with less than a handful of reviews are given preferential search placement, whereas me with my previously full monthly booking calendar, my 6 years of loyalty and 500+ Airbnb reviews sees me in a situation where my bookings are drying up. The search page doesn't say how many reviews I have, it doesn't mention I am a Superhost, for goodness sake what morons keep coming up with these ideas.....Airbnb are actively trying to destroy my business and the good rapport I have built up with Airbnb in this community!!

I will give it a few more months Gill, but this lot are probably going to push me into using another booking platform.

I just can't keep on re-inventing the wheel!

Cheers........Rob

[Gillian166]

@Robin4  hey there, I'll be down this weekend, around all next week, leaving the rainy GC to spend it in the cold, rainy AH! Have hardly seen the sun these past 3 weeks, that's enough to send all Qlders stark, raving mad! haha. 

thanks for the RAA tip, we will give them a call and if needs be can probs take our cars over to them as well. We will spend most of the day in the car ringing insurance places I imagine, oh joy. 

and I see you've caught up with the "amazing" Summer release.Bookings have been VERY slow, but hard to know if that's just cos it's May (although it's a gorgeous time to be in the Hills), not much going on in June until school hols at the end. there are still weddings happening though, i've quite a few weekend wedding attendees.  I already made 1 listing on bdc but ick, not enjoying the interface. 

[Kylee24]

Hi Gillian

Did you manage to sort this?

I'm in a similar boat, a number of airbnb cottages on the main farm.

Each has its own home and contents insurance, and I apply sharecover over the top when occupied therefore remaining covered at all times (I believe)

I'm keen to get my farm and dwellings under one policy if possible, and sharecover has public liability which is a big one I think.

But its a mess really

[Olivia539]

BJS www.bjsib.com.au does, not cheap 

Ceneta has a product as well, not cheap

I am shopping around for affordable insurance

Some people in this thread have suggested apia if you are over 50 yrs old

best of luck

[Paul661]

I found apia insurance amazing long as your over 50yo i got short term stay insurance included with normal home and contents for $850 in total for the lot pa!!

[Olivia539]

BJS does www.bjsib.com.au but it is not cheap!  I have not found out another one 

other options that have been presented to me is to have a landlord insurance policy and a separate policy for your own content

Finally Sharecover would be a good solution for people doing Airbnb occasionnally but it is next to impossible finding an insurance that would provide building and contents insurance knowing an Airbnb activity at the premises

yes clearly a void for AFFORDABLE insurance for Airbnb owners who live in the Airbnb property

[Lola408]

Hi Everyone,

I have really appreciated this thread- very helpful.

Just to add an option in, I am still waiting for some quotes before making my final decision. 

Suncorp will insure a main house (where owner lives) and a granny flat on airbnb. They were the cheapest by far and I contacted RACV and BJS. Waiting on quotes from Trident, Ceneta and Atlantic. 

If you just want a quote for personal liability, loss of rental income and damage by guests, property insurance plus offers this insurance and quoted me $365 for 13 months. 

Hope this helps,

Kind regards,

Lola