Leasing out your holiday home to short-term renters can be a lucrative choice. With effective running and marketing of the property, the returns can be very good.
Home-sharing platforms such as Airbnb and Stayz have recently emerged to add a level of ease and efficiency to the process of renting out your property. It is important to consider, however, that it is not as simple as pressing a button and reaping the rewards. It is imperative to prepare for the risks that are associated with lending your property out to strangers.
To protect your short-term holiday rental and avoid costly challenges later down the track, Short Stay Insurance is an essential consideration that can offer peace of mind and protection when leasing out your holiday home.
Importance of Short Stay Insurance
Lending out valuable short-term rental properties to paying guests can leave your home vulnerable to damage or theft, as well as liability claims if someone is injured or negatively impacted by your property. Short Stay cover can offer worthwhile protection to ensure you can recover from loss.
Stayz recommends that property owners have the appropriate insurance in place, while AirCover by Airbnb is automatically included for you as a host on the platform. This offers damage protection, cover for art and valuables, income loss, liability, and deep cleaning. This is not likely, however, to offer comprehensive cover in the same way that Short-Term Rental Insurance does, especially when your cover is tailored to your specific needs by a reliable Broker such as Atlantic Insurance..
Short Stay Insurance can cover Loss of Rent, Damage, Theft by Tenants, Liability, Building, and Contents to offer financial preservation in case of an insurable loss. While the Holiday Rental Insurance landscape is often confusing and misunderstood, an Insurance Broker such as Atlantic Insurance can offer specialist advice to ensure the right cover for your specific requirements.
Short Term Lease Insurance recommended policies
Whilst recommended policies can vary depending on your circumstances, common sections of policies taken by our Clients include:
1. Short Stay Liability Insurance
Liability cover is critical to protect your Legal Liability if someone becomes injured on your property. This may assist cover your Legal Liability for guest’s medical expenses, your legal fees and other costs associated with injury or Property Damage should you be found liable.
2. Building Insurance
This form of insurance provides cover for the physical structure of the property that you are renting out. This can provide cover for building damage, fixtures and appliances, windows, doors and more.
A standard Home Policy may exclude some risks that grow in likelihood when your home is leased to short term tenants or exclude cover all together when rented. Atlantic Insurance Brokers are experts in short-term rentals and can ensure your policy covers all necessary risks.
3. Malicious Damage by Tenants Insurance
This policy is designed to protect you in the event that your property suffers intentional tenant damage, for example if the property faces vandalism, graffiti or destruction of property. Malicious Damage cover can offer compensation for repairs following a Malicious Act by tenants.
4. Theft by Tenants Insurance
When allowing others into your home, there is always the risk that someone will take advantage of this. This policy will offer protection in the event of theft or attempted theft of your property’s contents by guests.
5. Contents Insurance
To protect your Contents a Contents Insurance policy is required. This will ensure your belongings including electronics, furniture, and appliances as well as artwork and other high-value items are covered against theft or damage.
6. Loss of Rent Insurance
Following an extreme weather event, malicious damage or major loss, this cover ensures you are still able to cover lost rental income so you may continue to repay your mortgage or generate an income from your property.
Reliable Short-Term Rental Insurance with Atlantic Insurance
With many insurers excluding cover for certain risks and exposures when short-term leasing, Atlantic Short Stay Insurance was created to provide you with the necessary insurance for you to remain protected against common Short Term Rental risks.
Contact us today to experience personalised, professional advice and ensure your property is covered for all required insurable events.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.