Renting out your property through Airbnb or another short-term letting platform can be an excellent way to earn additional income. Whether you rent a spare room a few weekends each year or let an entire holiday home throughout the season, hosting guests can create opportunities that traditional homeownership doesn’t.
However, before welcoming your first guest, it’s important to consider whether your existing home insurance is suitable for how your property is being used.
One of the most common questions Airbnb hosts ask is whether standard home insurance provides enough protection for short-term letting. The answer will depend on your individual policy and how often you rent your property, but in many cases, specialist insurance may be worth considering.
In this guide, we’ll explain why Airbnb hosts may need specialist insurance, the risks involved with short-term letting, and the types of cover that may be available.
Why Standard Home Insurance May Not Be Enough
Most standard home insurance policies are designed for properties that are occupied by the homeowner and their family. When you begin accepting paying guests, the way your property is used changes, which can also change the level of risk.
Depending on your insurer and your policy, short-term letting may not automatically be covered under a standard home insurance policy. This is why it’s important to review your cover before advertising your property on Airbnb or another short-term letting platform.
Every insurer has different terms and conditions, so it’s always advisable to check your policy or speak to an experienced insurance adviser before welcoming guests.
What Risks Should Short-Term Let Hosts Consider?
Opening your home to paying guests can introduce risks that aren’t always present with everyday homeownership.
Some of the risks Airbnb hosts may wish to consider include:
- Damage caused by guests to the building or contents
- Accidental damage to furniture, fixtures or fittings
- Fire, escape of water or storm damage
- Theft or malicious damage
- Claims if a guest is injured while staying at the property
- Loss of rental income following an insured event that prevents guests from staying
While many stays pass without incident, having suitable insurance in place can help provide peace of mind should something unexpected happen.
Is Airbnb AirCover Enough?
Many Airbnb hosts are familiar with AirCover, which is Airbnb’s built-in host protection programme.
While AirCover can provide valuable protection in certain situations, it isn’t the same as having your own insurance policy. Like any protection programme, it has its own terms, conditions, exclusions and eligibility requirements.
For this reason, many hosts choose to arrange their own insurance alongside any protection offered by Airbnb. Having dedicated insurance may provide broader protection depending on the policy you choose and your individual circumstances.
If you’re unsure how AirCover compares with specialist insurance, speaking with an experienced insurance broker can help you understand your options.
What Does Specialist Short-Term Let Insurance Typically Cover?
The cover available will vary depending on the insurer and the policy selected, but specialist Airbnb insurance may include protection such as:
- Buildings Insurance
- Contents Insurance
- Public Liability Insurance
- Accidental Damage Cover
- Legal Expenses (where available)
- Loss of Rental Income following an insured event (where available)
Every property is different, so the right level of cover will depend on factors such as how often you rent the property, whether it’s your main residence or a holiday home, and the type of guests you accommodate.
Do I Need Specialist Insurance If I Only Rent Occasionally?
Even if you only rent your property during busy holiday periods or while you’re away, it’s still worth checking whether your existing insurance is suitable.
Some homeowners assume occasional hosting doesn’t affect their insurance, but this isn’t always the case. Short-term letting changes how the property is being used, regardless of whether it happens every week or only a handful of times each year.
If you plan to rent your property, it’s a good idea to inform your insurer or seek advice before accepting bookings.
Who Should Consider Specialist Short-Term Let Insurance?
Specialist insurance may be suitable for a wide range of property owners, including:
- Airbnb hosts
- Owners of holiday homes
- Owners of holiday cottages
- Property investors
- Apartment owners
- People renting out a spare room
- Homeowners who let their property occasionally
- Owners using other short-term letting platforms
Whether you host guests regularly or only from time to time, arranging suitable insurance can help ensure your property is appropriately protected.
How to Choose the Right Short-Term Let Insurance
Not every Airbnb property is the same, which is why it’s important to choose insurance that reflects how your property is actually used.
When comparing insurance options, consider:
- How often the property is rented
- Whether you rent the entire property or just a room
- The value of your building and contents
- Whether public liability cover is appropriate for your circumstances
- Any optional covers that may be available, such as accidental damage or legal expenses
An experienced insurance broker can explain your options clearly and help you arrange cover that’s appropriate for your individual needs.
Speak to Dolmen About Short-Term Let Insurance
Whether you’re renting a spare room, a holiday cottage or an investment property, arranging suitable insurance is an important part of protecting your property and your income.
At Dolmen Insurance, our experienced team can explain your options and help you arrange insurance that’s suited to your individual circumstances. If you’re looking for Airbnb & Short-Term Let Insurance in Ireland, we’re here to help.
