When it comes to vacations, people are careful to make sure that they have the proper insurance coverage in place. But what about when you’re the host, not the traveller? With the rise of peer-to-peer booking services, an increasing number of Australians may find themselves in a landlord’s position but without the right landlord protection insurance.
Increasing options for holiday home renters
— Business Day (@BusinessDay) January 31, 2016
Airbnb may be a newcomer to the holiday market, but it has quickly become a big name in it. According to a recent report in WA Today, there are over 2,000 properties in WA listed on the community marketplace. While local councils are still working on adapting their current policies, homeowners continue to use the site in record numbers.
As reported in the Sydney Morning Herald, more and more Australians are becoming frustrated with international booking companies increasing their commission rates. Instead of companies like Stayz, they are looking to Airbnb, as well as a number of recently formed Australian start ups such as AURA Travel and Travelling Frogs.
The right coverage for renting out your home
“It is essential that homeowners or tenants who consider using online house-sharing services discuss this with their insurer beforehand…”
The spread of the sharing economy business to Australia may be an exciting source of income for Australians, but homeowners must make sure that they have the right business insurance in place to match their activities. As there are many ways that things can go wrong in a holiday rental, it is important to make sure that you are covered in situations that can arise.
In a press release from November 2014, the Insurance Council of Australia (ICA) urged homeowners and landlords to understand their insurance situation before opening up their homes to travellers through peer-to-peer accommodation services.
“It is essential that homeowners or tenants who consider using online house-sharing services discuss this with their insurer beforehand, and check how this could impact their home and contents insurance, strata or renter’s insurance policies,” said Rob Whelan, ICA CEO.
“Anyone thinking about renting a room or part of their home should know that they might not be covered for property damage and other losses that could happen as a result of renting it out to holidaymakers. Importantly, they may not be covered for public liability should a paying guest be injured on the premises.”
Before you open your home to travellers and potential liability, contact a broker at MGA Insurance today to make sure that you have the right coverage for your needs.