If you want to protect your short-term rental property, you need to get an Airbnb lettings host insurance. This is a type of insurance specific to short-term rentals.

Why is there a need for this if you already have a standard home insurance?

When you have multiple guests staying in your property with several check-ins and check-outs in a month, there’s a higher risk of damage and accidents. You need to protect your property to reduce the risk of compromising its earning capabilities.

In this article, you’ll learn more about the type of insurance you should provide for your shortlet and why it will benefit your portfolio. You’ll also understand what the insurance cover will be and how to get the best policy for your property.

What is an Airbnb Lettings Host Insurance?

An Airbnb lettings host insurance is a specific insurance policy for Airbnb hosts. This insurance covers damages caused by paying guests, something that standard home insurance won’t. The host damage protection provided by this type of insurance allows property owners to make claims in the event of accidental damage to the buildings and contents.

As an Airbnb host, you are legally responsible for the safety of your guests. Any accident leading to bodily injury might put you in trouble with the local authorities. If your liability insurance covers paying guests, you can make claims that can financially support you as you settle the issues with the guest. With the right coverage, you can even use the claims to make repairs, upgrades and replacements.

A host liability insurance will give you peace of mind as you continue to welcome different guests into your Airbnb property. By understanding this type of insurance, specifically the right levels of cover you can get, you are protecting your property, contents and income.

Why Airbnb Hosts in London Need Specialist Insurance

Airbnb hosts in London have been steadily increasing over the years, thanks to the high demand for short-term accommodations and the growing home-sharing market. It’s a great passive income strategy for property owners who have an extra property to rent out.

While it’s easy to list your property and start earning, you need to protect your property from the risk of damage brought about by irresponsible guests or a home emergency. Short-term accommodations won’t give you enough time to vet guests because of the short stay and frequent turnovers. The chances of having troublesome guests stay in your property are high.

This is where Airbnb lettings host insurance comes in handy. Most standard home policies won’t cover damage caused by paying guests. A host insurance is specifically designed for short-term rental situations.

Among the protections specified are building and contents insurance in case of theft. It will give short-term rental hosts peace of mind because they know their property is protected whether it’s occupied or vacant.

What Does Airbnb Host Insurance Cover?

Airbnb host insurance companies offer a different range of protections designed to cover short-term rentals against theft, damage or legal responsibilities. Some also cover the loss of income caused by guests.

Airbnb offer AirCover for hosts, which includes reservation screening, guest identity verification, host liability insurance (up to $1 million or £740,000), host damage protection (up to $3 million or £2.2 million), experience and services liability insurance (up to $1 million or £740,000) and a 24/7 safety line.

To give you another idea of what to expect, we’re sharing what City Relay’s partner, Guardhog, offers the property owners we work with.

• Building damage caused by a guest – up to £1,000,000
• Contents insurance for damage or theft caused by a guest – up to £100,000
• Host liability insurance – covering bodily injury or property damage for which you’re legally responsible, up to £2,000,000
• Home-sharing damage protection – cover for accidental damage caused by guests
• Loss of income due to guest-related incidents – up to £1,000
• Identity theft, infestation, and replacement of locks and keys – each covered up to £1,000

Home emergency cover for urgent repairs can also be negotiated with the insurance company if you think it’s a coverage you’ll need for your property.

Remember, each liability cover is different and may change depending on the property type, rental frequency and the condition of the unit. Make sure you compare different insurance companies and check the coverage they offer Airbnb hosts.

Why Airbnb’s Host Guarantee Isn’t Enough

The Host Guarantee offered by Airbnb is not considered insurance. While it covers hosts for up to £600,000 in damages, it can’t afford to include high-value items like artworks, jewellery, etc. Not only that, the claims process is too short as it has to be submitted within 14 days after check-out or before the next guest comes in (whichever happens first).

In 2015, Airbnb introduced the Host Protection Policy to protect hosts against guests making claims during their stay. However, this won’t cover any claims made outside of their stay. It may cover hosts, but it won’t be enough in the long run.

This limited protection means you still need to get independent insurance for valuable items and more expensive property damage. Make sure you read the Host Guarantee coverage so you know what to get from another insurance company, like Guardhog.

Benefits of Using a Dedicated Airbnb Host Insurance Provider

Getting an Airbnb lettings host insurance won’t just cover damages. It can also support your rental strategy. It protects your property even from loss of income. You can enjoy peace of mind as both your guests and property are protected.

Choosing independent insurance companies would get you the following benefits:

• Comprehensive property protection covers accidental or intentional damage caused by guests. This includes furniture, appliances, devices and structural elements.
• Guest injury and liability coverage protects you in case a guest is injured on your property. This will cover medical expenses, legal fees and compensation claims.
• Income protection for when your property loses bookings due to covered incidents (like fire or flood). You will be compensated for the loss of rental income.
• Theft and misconduct coverage where guests take items from your property or break rules and cause damage to the property (e.g. smoking, parties, etc).

A specific host insurance will cover gaps left by Airbnb’s Guarantee. Check different insurance companies and make sure they are authorised and regulated by the Financial Conduct Authority. Check the Financial Services Register to find a list of companies you can trust.

Common Questions About Airbnb Lettings Host Insurance

Here are the common questions asked by landlords about Airbnb lettings host insurance.

Do I need Airbnb lettings host insurance if I already have standard home insurance?

Yes. Standard home insurance won’t cover damages caused by paying guests (e.g. theft, accidental damage or bodily injury). You need a host-specific insurance policy to get adequate protection for your Airbnb property.

Usually, this type of insurance can be an add-on to your existing standard home insurance. Before you get it from another source, ask your existing insurance company first.

Does Airbnb’s Host Guarantee replace host insurance?

No. Airbnb’s Host Guarantee is limited. The scope and value may not be enough to cover what Airbnb hosts need after damages caused by guests. It can’t be used as a substitute for a fully regulated insurance policy. To ensure adequate protection, it’s best to get a specific host insurance so you’re protected against serious incidents or expensive legal responsibilities.

What does host liability insurance cover?

Airbnb’s host liability insurance covers legal accountability for guest injuries, accidental damage or theft of guest belongings and accidental damage caused by paying guests (e.g. common areas).

This does not cover damages caused by the guest to the property or any of the contents in it. This is covered by the Host damage protection. Any damage or injury resulting from anything the guest has done intentionally is also not covered.

Will the insurance cover damage or theft by guests?

Yes, a host insurance will cover damage or theft by guests. Any accidental damage to personal belongings, furnishings or fixtures can be compensated. This is usually subject to the terms and conditions of the policy, so make sure you read the fine print so you know how you can process the claim for what was lost.

Is the insurance active when the property is empty?

This depends on the policy that you’ll get. You can specify to be covered when the property is empty. This will protect it from vandals. Just make sure to ask for it specifically since some policies won’t include this in the coverage.

If you’re not concerned about the safety of your property while it’s empty, you can opt to be insured only on days when the property is booked. This will lower the charges you have to pay.

How do I make a claim?

The claims process is generally the same across insurance companies. You need to submit proof of the damage. This may require you to communicate with the guest so you can complete the supporting evidence (e.g. photos or receipts).

If you’re working with a property management company, you can enlist their help in gathering the necessary evidence so you can make a claim.

Peace of Mind for Every London Host

Understanding the details of Airbnb lettings host insurance will help you make the right choice. Since many insurance companies are offering specific insurance policies for short-term rentals, you want to choose the one that can meet your unique needs. The more you know about your options, the more confident you’ll be with your decision.

At City Relay, we can take the hassle out of the hosting experience. We’ll combine expert property management with our trusted insurance partnership with Guardhog. We will optimise your occupancy rates and vet guests to minimise problems with the property.

Get a free rental income estimate and learn how we can help maximise your property’s performance and profitability while you enjoy full protection.