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

[Jo140]

Ceneta don't cover room only just entire home rental. I called Veronica and she told me they would if the room had own access which turned out to be incorrect.  I wasn't impressed but best of luck with them.

[Olivia539]

some insurers do cover room only

Suncorp will cover up to two rooms (according to Call centre info gained 2 wks ago)

[Olivia539]

Elizabeth 

I cannot thank you enough for your detailed post on insurance providers. It is a real challenge to find insurers that provide cover for mixed-use (living in the house and renting part for short term as well as a granny flat rented long term).

Vero is increasing its premium by 50% every year, what a joke.  so  I have not contacted the providers you mentioned and see what happens.

A big thank you again,

[Eva547]

@Olivia539 Woolworths cover STR.

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

[Kathryn541]

For my situation in NSW, Ceneta and Woolworths came out the same affordable price however the reviews for Holland Insurance (Woolworths) were not enticing and the prompt service and understanding that Veronica has in this type of insurance is amazing. So it was an easy choice for me. Thanks again everyone for steering me in the right direction.  

[Olivia539]

Hi Eva 

thank you for info, our airbnb is mainly for families so not sure woolworths might meet our needs but worth a try

[Richard1810]

Just an update on landlord insurance for hosts using their properties for AirBnB.  I had my property insured with AAMI, but they do not cover short term rental.  After some searching, this is what I found:

- AAMI - no cover, but they recommend their associated company Terri Scheer

- Terri Scheer - terrible reviews on Productreview.com.au, apparently their claim process is really awful, so I didn't progress with them

- RACV - they provide cover, but this does not include theft or damage by tenants

- CBA - they provide cover , but much more expensive than CGU

- CGU landlord insurance, they cover short term rental, including damage by tenants and loss of confirmed bookings.  They also cover theft or damage by AirBnB guests

Finally I went with CGU, they were about 50% more than my pre-AirBnB landlord insurance, but much cheaper than others.

I hope others find this useful

[Jo140]

I am with BJS and my policy is CGU it covers the house and contents plus landlord insurance for entire home rental but not for renting room only in your house and no income protection either. Have yet to find one who does cover room in share house.  It's frustrating trying to find cover for renting room only. Can anybody recommend one thanks. 

[Olivia539]

Suncorp does I think, give them a call

[Eyna89]

Thank you Richard

[Eyna89]

I am disappointed, I have just checked CGU score of 1.9 stars of 141 reviews on productreview.com.au

[Scott1869]

@Richard1810 I called all the companies above - non would offer insurance for AirBNB if it wasn't owner-occupied and anything more than 4 weeks out of a year. 

[Michelle3714]

I just started my Airbnb and found that NRMA will cover me for this situation. My property is my primary residence but when I have guests through Airbnb I live at my mum's place. NRMA home and contents insurance covers this scenario.

NRMA suggested I consider topping up with a policy by ShareCover (also owned by NRMA) as the home and contents insurance does not cover certain things like theft from guests. Can someone please tell me what types of circumstances one may encounter that would not be covered by Airbnb host protection that would warrant the high costs associated with the ShareCover insurance premiums?

Hope the above is helpful!

Michelle

[Richard1810]

Sorry, I should had added that my property is an apartment 100% dedicated to AirBnB, so I didn't have the problems of sharing rental and personal property.

[Ewan49]

Hi Richard, I am in th same situation, were CGU able to insure you for more than 12 weeks worth of rentals?