Before your first guest arrives, you need insurance that covers paying guests. Most standard home insurance doesn't. Airbnb's AirCover helps, but it isn't a replacement for proper cover. Here's what to check.
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Key takeaways
- Most standard home insurance doesn't cover paying guests.
- AirCover helps on Airbnb bookings, but its damage protection is discretionary.
- Get specialist short-let cover, including liability and loss of income.
- In a block of flats, check the freeholder's buildings insurance allows short lets.
- Your mortgage lender may want to see suitable insurance too.
Contents
Does home insurance cover Airbnb guests?
Home insurance is priced for people living in their own home. Paying guests change the risk. London Money warns that most standard home insurance policies won't cover this type of arrangement, which could leave you out of pocket if you need to make a claim. Tell your insurer before you take a booking.
What does Airbnb's AirCover include?
Airbnb describes AirCover for Hosts as a programme including guest identity verification, reservation screening, $3m USD host damage protection, $1m USD host liability insurance and a 24-hour safety line. For UK stays, Airbnb says the host liability insurance is underwritten by Zurich Insurance Company Limited.
What doesn't AirCover do?
The damage protection part isn't insurance in the usual sense. BNBCalc's analysis explains that the $1 million liability portion is real insurance, but the damage-protection portion is a discretionary Airbnb program, where Airbnb decides whether and how much to pay, with a short window to claim. It also only applies to Airbnb bookings, not Booking.com or other sites.
What should short-let insurance include?
- Buildings cover that allows paying guests.
- Contents cover, including accidental damage by guests.
- Public liability, in case a guest or visitor is injured.
- Loss of income, if the home can't be let after an insured event, such as a flood.
- Cover for empty periods between stays.
What about flats and leasehold homes?
In a block of flats, the buildings insurance is often arranged by the freeholder. Check that it allows short lets, because some policies don't. Read Can you short-let a leasehold flat?
Will your mortgage lender ask about insurance?
Lenders often want to see suitable insurance before agreeing to short lets. Read Do you need your mortgage lender's consent?
Frequently asked questions
Is AirCover enough on its own?
For most owners, no. It only covers Airbnb bookings, and its damage protection is discretionary. Proper short-let insurance covers every booking and every site.
How much does short-let insurance cost?
It depends on the home, its location and how often it's let. Get quotes from a few specialist insurers, and compare what's covered, not just the price.
Does my insurer need to know which sites I use?
Tell them how you let the home: short stays, through which sites, and roughly how many nights a year. The more they know, the less room there is for a dispute if you claim.
What about medium-term stays?
Stays of a month or more can be treated differently by insurers. If you take longer stays, tell your insurer.
Does AirCover cover Booking.com guests?
No. AirCover only applies to Airbnb bookings.
Related guides
Sources
This is general information, not legal, financial, tax or insurance advice. Market figures are averages as of the date shown above and change every month. Speak to a qualified professional before you act on anything here.