Short term rental and Airbnb insurance

Airbnb insurance Australia: What you need to know and where to get cover for your short term rental.

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If you're one of the many people taking advantage of short-term rental platforms like Airbnb and Stayz, then you need to make sure you have the proper short-term rental insurance. There are a few Airbnb insurance options out there, so we've laid them out for you to compare below.

What kind of short term rental insurance options are there?

Short term rental insurance in Australia is still in its infancy. However, there are a few types of insurance options out there, including:

Short term rental insurance. Brands like QBE can provide you with cover for short term rentals. This type of insurance can provide you with cover for your entire house or apartment, or just the part that's being rented, like a room on Airbnb. Short term rental insurance is often broken down into the following options:

  • Pay-per-night short stay, which lets you only pay insurance for the day's that your home or room is rented out to a guest.
  • Short stay rentals, which are for homes that are rented out for most of the year, albeit by multiple guests, and can cover you for up to 12 months.

Landlord insurance. Some landlord insurance insurance policies, like Budget Direct, can cover you for Airbnb and other short term rentals, but generally only if you're renting out a room. Most have conditions you need to meet in order to be covered. For instance, the property needs to be owner-occupied. In other words, you still need to be living at the house to get cover. Other insurers may consider covering you once you've received a quote.

Host protection insurance. This is a type of insurance offered specifically by Airbnb and protects you and your property with legal liability cover. Basically, if a dispute arises between you and your guest, you can be covered for legal costs. All Airbnb hosts are automatically covered so it's not something that you need to pay extra for. However, you won't be covered for anything else. For example, if your guests damage your belongings or accidentally start a fire, you'll have to pay for this yourself.

  • This guide will mainly discuss how landlord insurance can help you cover your short term rental property

Landlord insurers that cover short term rentals

Here are a few landlord insurers that cover short term stays for less than 90 days. Remember to compare your options and read through the product disclosure statement if you're unsure of anything.

Name Product Cover for Stays Under 90 Days Fire Tenant Default and Damage Accidental Damage Replacement of Locks
Domain Landlord Insurance

Optional

$500
Domain Insure uses property data to help build your quote faster.
QBE Landlord Insurance
Save 10% on your first years’ premium with QBE Landlord Insurance.
Youi Landlord Insurance

Optional

$500
Cover for investment property from fire, theft and numerous weather events.
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Things to look out for when shopping for Airbnb insurance

Home insurance and some landlord insurance policies might not cover you for Airbnb or other short term rentals. Here's why:

  • No cover for less than 90 days. Landlord insurance generally only covers stays that are longer than three months. Since most Airbnb stays are far less than this, you might not be covered. If you already have landlord insurance and want to use Airbnb, call the insurer and let it know – it might be able to cover you.
  • In some cases, you can't live on the property. Many people using Airbnb and Stayz only rent out a room. Some landlord insurers only cover you if you are not living at the property.
  • Home insurance only covers you for personal use. While you probably have a home insurance policy, the cover you get doesn't extend to other guests. As soon as you make an income from the property, you're no longer covered in most cases.

What does Airbnb insurance cover?

Short term rental insurance or Airbnb insurance can provide you with similar protection to a landlord insurance policy, as well as cover for things like identity theft and accidents. This means you can get cover for the following:

  • Fire. If a guest is using your kitchen and accidentally starts a fire, you can be covered for repair and rebuild costs.
  • Theft or attempted theft. If someone steals from you or tries to, short term rental insurance can reimburse you for any costs associated with the theft.
  • Bursting, leaking, discharging or overflowing. Burst pipes, leaks and more are all generally covered.
  • Identity theft. If a guest steals your identity, or someone in your home, you can get cover for legal costs and fees.
  • Malicious damage by your guests. Covers malicious damage by your guests to contents and the building.
  • Accidental damage by your guests. Reimburses you if your guests accidentally break or damage belongings or the home itself.
  • Vandalism. If guests vandalise your home, you can get cash towards having it fixed.
  • Loss of rental income. If your home becomes unable to house guests due to an insured event, you can get reimbursed for the loss of rent.
  • Temporary accommodation. If your home becomes uninhabitable due to an insured event like a fire.
  • Tax audit. This can cover the cost of an audit if you need one for the property you're insuring and renting out.

Each policy has different limits and conditions, so be sure to check out the product disclosure statement (PDS) before you buy a policy to find out exactly what's covered and what's not.

What's excluded from short term rental insurance?

All policies have exclusions. Here's what might not be covered with short term rental insurance:

  • Some short term rental insurance policies won't cover you for natural disasters. This can include storms, earthquakes, bushfires and floods. Your home and contents insurance policy should cover you.
  • Any licensed hotels, motels, resorts or similar licensed venues that are not considered residential accommodation will not be covered.
  • Any case where you haven't obtained written consent from the owner or landlord to let a room or home.
  • Any loss or damage that doesn't occur while a guest is staying at the house.
  • Gradual deterioration or depreciation, including wear and tear.
  • Any damage caused by insects or vermin.
  • Any building work, repairs or renovation to your home where the value of the work exceeds a certain amount.
  • Any damage caused by roots of trees, plants or shrubs.

Compare policies for landlord insurance

  • Remember, not all short term rental properties will be eligible for landlord insurance. If you're ever unsure, please reach out to the insurer directly.
Name Product Tenant Default and Damage Loss of Rent Accidental Damage Sum Insured Safeguard Cooling-off Period Cheapest way to pay
Budget Direct Landlord Insurance

Optional

10% of your home sum insured, for up to 12 month
Optional
Optional
21 days
Annually
Save 15% on your first year's premium when you purchase cover online. T&Cs apply.
ANZ Landlord Insurance

Optional

Maximum of 12 months up to $52,000
21 days
Monthly or Annually
Save up to 10% with two eligible insurance policies and 12.5% for three eligible insurance policies. T&Cs apply.
Westpac Landlord Insurance
Up to 10% of the sum insured or the amount of lost rent for up to 12 months in total, whichever is less
21 days
Monthly or Annually
Get up to 25% off for your first year. Promo code: COVER
St. George Landlord Insurance
Up to 10% of the sum insured or the amount of lost rent for up to 12 months in total, whichever is less
21 days
Monthly or Annually
Save up to 25% when you purchase cover online. Promo code: COVER
Virgin Landlord Insurance

Optional

10% of your home sum insured, for up to 12 month
Optional
Optional
21 days
Annually
Purchase a new eligible Virgin Home and Contents Insurance policy online and you'll also save 15% on your first year’s premium. T&C’s Apply.
Domain Landlord Insurance

Optional

Optional - up to 12 months of weekly rental amount
30 days
Annually
Domain Insure uses property data to help build your quote faster.
Qantas Landlord Insurance
10% of your home sum insured, for up to 12 month
Optional
Optional
21 days
Annually
Earn up to 20,000 Qantas Points when you apply. Points awarded will be based on your premium. T&Cs & exclusions apply.
Seniors Landlords  Insurance
The lesser of 12 months or 10% building sum insured
14 days
Annually
Buy online and save up to 15% on landlord building and contents policies. T&Cs apply.
Youi Landlord Insurance

Optional

The lesser of 12 months or 10% building sum insured
20 days
Annually
Cover for investment property from fire, theft and numerous weather events.
QBE Landlord Insurance
The lesser of: 24 months from the time of the incident or 20% of your buildings sum insured
21 days
Annually
Save 10% on your first years’ premium with QBE Landlord Insurance.
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