Renting your property these holidays? Here’s why you need insurance

Renting out your home via Airbnb can feel like money for jam; your house can make you money and you have to do little more than list the property online. But, be wary. While it would be nice to think that everyone will treat your property with the same love and care that you do, that won’t always be the case. On top of that, accidents do happen so, even the most caring of renters may end up unintentionally damaging your property.

So, how do you protect your property while still reaping the benefit of making some extra cash over the holidays? First thing’s first, if you’re renting out your property then you’re a landlord and that means you need insurance.

Don’t know which home and contents insurer to go with? See how New Zealand home and contents insurance providers stack up with Canstar’s free comparisons.

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Canstar has some tips on home and contents insurance, to give you peace of mind when renting out your property through Airbnb.

Airbnb’s host guarantee does not replace home and contents insurance

While it is helpful to know that Airbnb offers some level of protection when renting out your property through its service, the Insurance and Financial Services Ombudsman cautions that this is not a replacement for getting house insurance.

In January 2015, Airbnb launched its Host Protection Insurance. Initially only available to accommodation hosts in the US, Airbnb later rolled out the host protection to 16 countries:

  • Australia
  • Canada
  • China
  • France
  • Germany
  • India
  • Ireland
  • Italy
  • Japan
  • The Netherlands
  • New Zealand
  • Portugal
  • Singapore
  • Spain
  • United Kingdom
  • United States

Airbnb’s Host Protection Insurance may provide coverage to hosts irrespective of what other insurance arrangements they have, but that does not mean that it covers you for everything. You can find out more about what it does and doesn’t cover, here.

How to protect your short-term rental (and renters) with home and contents insurance

Wellington residents pay more rent

AA Insurance provides some tips on how to protect your short-term rental property with home and contents insurance.

  • Let your insurer know your plans to rent out your property and if it’s a one-off, occasional or regular gig for you and your home, as this may affect your cover.
  • Most insurance policies don’t cover the intentional loss or damage caused by a tenant or guest you’ve invited into your home, so it pays to check with your insurer.
  • If your tenant injures themselves in your home then check with ACC, as they are likely to be covered even if they are a visiting tourist to New Zealand.
  • All Airbnb hosts are offered automatic Host Protection Insurance, in case your guests get hurt or cause property damage, and a Host Guarantee, which covers accidental damage to your home and belongings. Read the fine print so you know the expectations and limitations and remember it should not replace your general home and contents policies.
  • Keep sentimental or expensive items out of the way, preferably under lock and key, to keep them safe, or take them with you.
  • Keep your home maintained. It’s not only part of your policy obligations, but also helps keep your guests safe and happy, and will help encourage others to stay, too.
  • Update your home and contents policies with every addition or alteration you make, such as adding on a deck or buying new outdoor furniture to put on it.

The bottom line is, if you’re renting out your property these holidays – or any time – you want to make sure that your precious asset is covered. Take a careful look at insurance policies, to make sure you understand any conditions. And to help you choose a provider that works for your needs, use Canstar’s comparisons to see how providers compare. Happy hosting!

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