As of September 2022, there were 251,000 short-term rentals registered across Australia, down from 400,000 pre-pandemic.
However, not all short-term stays are registered. If you rent out your main residence, this article is for you. Here are some tips to help you manage your risks.
Understanding property insurance
To help protect your home from multiple risks, you can take out building insurance (if you own the premises) and home contents cover. Often the policies are bundled together for your property.
Building insurance covers your home’s physical structure, plus fixtures such as typically include built-in units, fixed carpet and tiles, light fixtures, heating systems, solar panels, and inground pools.
Meanwhile, contents insurance generally covers the rest, including fittings and possessions, such as furniture, whitegoods, ovens/stoves, window furnishings and outdoor stereos and standalone barbeques.
How home-sharing impacts personal property insurance
If you share your abode or rent, then standard home and contents insurance may not be suitable. Some insurers will offer individual cover for shared homes. But it will only cover your items, not those of your housemates.
Insurers tend to consider you a’ host’ if you use a platform, such as Airbnb or Homestay, or go private to share part or all of your main residence for a fee. That’s whether or not you’re living in the home at the same time as your guest. Home-sharing platforms, such as Airbnb, Stayz, and Homestay etc., may offer you guarantees or insurance to bridge the gap in cover.
Additional coverage options (short-term stay)
Short-term rental insurance applies if you only let out your residence for short stays and not while you’re living there. These accommodation types include holiday houses, serviced apartments, and investment properties.
We can offer suggestions on risk management that complement a short-term stay insurance policy. If you would like to know more about home share and your personal property cover, please CLICK HERE or contact us for more information.