Note: Our Airbnb holiday let insurance is for second homes. We can't cover letting your primary residence.
Becoming an Airbnb host can provide a great revenue stream for those letting out their holiday home. However, it's important to take steps to make sure that both your property and the holidaymakers staying are covered should something go wrong.
Many owners are unaware that specialist Airbnb host insurance is needed to cover short-term Airbnb holiday letting. Traditional home insurance is not suitable to cover the risks and liabilities associated with renting out a second home via Airbnb.
These are the different elements of Airbnb home insurance cover you might want to consider depending on your individual needs and holiday home type:
Just like standard home insurance, you'll need to make sure your buildings (the main structure of your holiday home and its permanent fixtures and fittings) are covered for loss or damage due to events like, flood, storm, escape of water, subsidence or fire.
Contents insurance covers your personal effects (such as furniture, kitchen appliances, electricals, soft furnishings and carpets) if they're damaged, lost or stolen.
Buildings and contents insurance can either be bought separately or combined into one policy.
If an Airbnb guest has an accident on your property and makes a compensation claim against you for personal injuries, public liability insurance is designed to cover the legal costs and potential compensation if you are considered liable.
An indemnity of up to £5m is recommended for third-party claims and £5m for domestic employees.
One of the biggest worries for anyone renting out their holiday home is the risk of damage by guests. With malicious and accidental damage cover you have the reassurance that if something gets damaged you won't out of pocket. Also, check that damage by pets is covered.
In addition to theft or attempted theft from intruders, you'll need to be covered for theft by paying Airbnb guests. Check if theft is covered even if there isn't evidence of forcible or violent entry.
If your Airbnb holiday property becomes uninhabitable due to loss or damage, choose a policy that covers the cost of alternative accommodation for holidaymakers staying in the property at the time loss or damage occurs.
This cover enables you to claim back the lost rental income from confirmed bookings if an insured event, like a fire or a burst pipe, prevents booked guests from staying at your holiday rental. There’s typically a limit on how much you can claim for, so check with your Airbnb home insurance.
Legal cover is useful should you need to evict a paying guest who refuses to leave after their agreed booking period.
Considering Airbnb provides Aircover (formerly host protection insurance and host guarantee), do hosts still need separate holiday home insurance? AirCover is not a substitute for taking out your own comprehensive holiday home insurance to cover risks that the free insurance may not cover.
Also, Aircover only covers incidents that are a result of a stay booked through Airbnb. That means that if you get direct bookings via your website or VRBO etc, you will need comprehensive holiday rental insurance to cover these stays.
It is also unlikely that you will have the same rights and protections which you get when taking out an insurance policy in your own name. If the Airbnb resolution centre declines a claim, who do you complain to? If you take out your own Airbnb holiday let insurance policy from a regulated company, you have the reassurance that you can complain to the Financial Ombudsman Service.
Standard home insurance policies won't cover renting out your home to paying guests. This is likely to invalidate your home insurance.
Holiday home insurance is for a second property, not a main residence. The very nature of Airbnb means a host might not be renting out a second home, but a primary residence or a spare bedroom. If so, hosts will need Airbnb insurance that covers renting out a primary residence.
If you are renting out your main home or a spare bedroom on Airbnb, it's essential that you inform your house insurance company beforehand. If you don't, your insurance company could decline a claim due to non-disclosure and invalidate your cover.
Some house insurers may extend the policy to cover short term rentals. There are also companies that offer top-up insurance which provides short-term Airbnb letting cover which isn't included on standard home insurance.
Note: Our Airbnb holiday let insurance for is for second homes. We can't cover letting your primary residence.
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