Residential Insurance

[Kerry5]

Hi, does anyone know if there is an insurance company in Australia which offers residential insurance for people who rent out more than two rooms of their house? I have been with AAMI for years but recently discovered that hosting on Airbnb renders the policy void (so I have been paying premiums for nothing and my house has not been covered). I have called GIO and Suncorp who only cover up to 2 bedrooms but I rent my entire house with 3 bedrooms.
My current insurance is only valid until 07 Feb and if I can't find an insurance company which covers residential properties listed on Airbnb then I will have to remove the listing and host no more.
Perhaps insurance companies are simply behind the times and have not kept up with the exponential growth of Airbnb so do not have a product to match market requirements.
Thanks for any suggestions! 🙂

[Robin4]

@Kerry5....Hi Kerry, this is part of another post I did on this subject so bits of it might sound disjointed but, being an Aussie it is definitely applicable to you. I use it for my guests and have not been put in the situation where I have had to claim but I have had lengthy discussions with the company and I am satisfied it is the real deal.....

On the insurance side of things Kerry you should consider that this all encompassing insurance protection cover that Airbnb offers does not, in reality, exist. Its terms, defenitions and conditions have been so cleverly crafted that there is vitually nothing which will be covered.....It's a marketing tool, forget it!!

In this country though (Australia) we have an insurance company called 'Sharecover' which insures specifically for the Airbnb or Stayz platforms. You can contact them on the interent by typing in  sharecover.com

Most insurance companies will not cover properties that are subject to some form of co-share rental agreement. In fact some companies will even cancel general household policies if they find out there is a rental agreement taking place.

Share cover does not replace an existing household insurance agreement, it works with it, and only covers the 'incidents' that a guest is likely to cause. It covers fire, damage, both malitious and accidental and theft but does not cover flood, earthquake, tornado or other acts of God.

Coverage for $400,000 building, $40,000 contents cover and $10 million liability cover costs just $3.50 per day, and you only purchase cover for the time that guests are in the residence. You nominate and pay online for a defined period and are given a PDF of the policy document immediately. It can be for one night or two months! I cannot believe that Australia is the only country to offer such protection so I would suggest you do as I did and get onto the Insurance Council in you country and ask them to recommend a company operating in this field.

So there you go Kerry, give them a go, you will find them accommodating, and as I said to start with, they are geared to working with the Airbnb platform. When requesting a quote you will be prompted to insert the platform you are using be it Airbnb or Stayz!

Good luck Kerry....good hosting....Cheers....Rob

[Lucy70]

Hi Rob,

I'm looking at putting my place on Air Bnb when I go on holiday, and Sharecover looks like a great option. The thing that concerns me is that, as you say, many insurance companies will void a policy if they discover you've had guests staying there, which means that I would then no longer have a standard home and contents policy in place, so still not covered for many things. Did you find an insurance company that was happy to insure you for storm etc, and would then still insure you when you were in your home rather than when you had guests, so would in effect 'work with' share cover as you describe it below?

Thank you for your help!
Lucy

[Kathryn15]

GIO have changed their policy so now they cover short term rentals on their landlords insurance 🙂

[Jamie79]

Hi Kathryn,

Thanks for your advice - would it be possible for you to point to the exact policy or wording?  I have just read the GIO Landlord Insurance PDS and I can see that it specifically says "Your property does not include: ...." "...hotel, motel, boarding or guest house."

Again I think they could argue that use of your house to make income from AirBNB would consitute it being used as a "guest house" and void the policy?

Jamie.

[Eva636]

gio.com.au > 

faqs >

home-insurance >

Does GIO cover short term holiday rentals, like Airbnb?

Provided you have a GIO ‘owner occupier’ policy, continue to reside in the home, and no more than 2 bedrooms are being rented under a short term holiday rental or home sharing scheme (like Airbnb, or Stayz), GIO will continue cover. However, there are general cover exclusions you need to be aware of. 

If you have a GIO Landlord policy and the entire home or unit is being rented under a short term holiday rental or home sharing scheme (like Airbnb, or Stayz), GIO is unable to continue the policy, and you will need to seek cover elsewhere.

[Carol803]

Hi Kerry, I'm in the same boat as you....in 2019!  Been with same insurer for 20 years and they state no cover available at all if there are Airbnb guests.  Checked out Sharecover with NRMA (& would have to cancel Home & Contents cover and move across to NRMA)...but what amount is reasonable to insure with Sharecover if you are only renting out one or two rooms on a casual basis....no one seems to be able to advise on this??