What is Airbnb Insurance?

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If you're renting out your second home or holiday house on Airbnb, you should know that Airbnb insurance gives you extra coverage. It's like a booster for your regular home insurance.

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Don’t count on your standard home insurance to protect you when you have to pay guests. In fact, if you haven’t told your home insurer about your rentals, they might deny any claim you make, even if it has nothing to do with Airbnb. So, renting out your place could ruin your regular insurance, leaving you unprotected.

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As an Airbnb host, you probably know that Airbnb offers Host Guarantee and Host Protection Insurance. These are included in your host fees, which is great, but they don’t cover everything. Airbnb is clear about what is and isn’t covered, and they suggest getting your own Airbnb insurance for full protection.

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How Does Airbnb Protect Hosts?

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Airbnb has a program called AirCover for Hosts that provides various protections. It includes verifying guest identities, screening reservations, $3 million in Host Damage Protection, $1 million in Host Liability Insurance, and access to a 24-hour safety line.

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AirCover is automatically available to all Airbnb hosts, giving you peace of mind so you can focus on making your guests' stay amazing.

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Being an Airbnb host comes with many responsibilities and can be time-consuming. Rental management companies like Houst can help by automating repetitive tasks, making your life easier.

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If you can't resolve a dispute with a guest, the AirCover program might help. You must submit a reimbursement request with supporting documents or start a liability claim through Airbnb’s resolution center.

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What Does Host Damage Protection Cover?

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Host Damage Protection helps if a guest damages your property or belongings and doesn’t pay for it. It covers:

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• Damage to your home, furnishings, valuables, or belongings caused by guests or their invitees
• Damage to parked cars, boats, or other vehicles caused by guests or their invitees
• Extra cleaning costs to remove stains or pet accidents left by guests or their invitees
• Loss of income if you need to cancel confirmed bookings due to damage caused by a guest or their invitees

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However, it’s important to note that Host Damage Protection isn’t an insurance policy. It doesn’t cover:

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• Normal wear and tear
• Loss of cash
• Damage from natural disasters like earthquakes or hurricanes
• Airbnb strongly encourages hosts to get additional insurance to cover any gaps not covered by Host Damage Protection.

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Does Your Standard Home Insurance Cover Airbnb in the UK?

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Your standard home insurance typically covers repairs for damage from fire, wind, or other natural disasters like storms or floods. It also includes personal liability protection if someone gets hurt on your property.

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However, when it comes to commercial use, things change. If you’re renting out part of your home or the whole place regularly to make money, insurance companies see this as a business activity. This brings different risks and responsibilities.

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So, if you have paying guests staying at your property, your standard home insurance might not cover you. In fact, it could invalidate your policy, leaving you without any protection. Standard homeowner’s insurance isn’t made for the vacation rental market, so you’d need to get business insurance instead.

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Does Landlord Insurance Cover Airbnb in the UK?

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Landlord insurance usually covers properties rented out for longer periods, typically at least 6 months. While being a landlord and an Airbnb host have some similarities, most landlord insurance policies don’t offer enough coverage for Airbnb-style hosting. If you rent your property to short term rental (STR) guests, your landlord insurance policy might be cancelled, or it might not cover any guest-related incidents.

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Do You Need Insurance to Host in the UK?

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Legally, you might not need extra insurance to host on Airbnb, but it’s pretty risky to go without it. Airbnb’s AirCover for Hosts might not cover everything you need, leaving some gaps.

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If something goes wrong, repairs can be costly, and you’ll lose income while fixing things up. Proper insurance designed for short-term rentals can help protect you from major financial hits.

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Whether you’re running a Pet-friendly Airbnb or offering farm stays, you’ll need specific host insurance to cover damages and incidents with paying guests. This insurance adds extra protection to what AirCover provides.

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Listing your property on Airbnb and similar sites exposes you to millions of travellers, but you have to pay a commission fee for each booking. It’s a smart move to create your own direct booking website to become more independent and save on those hefty OTA fees.

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Do You Need Public Liability Insurance for Airbnb in the UK?

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Legally, it depends on where you live in the UK. For instance, Scotland recently passed a law requiring all short-term rental hosts to have liability insurance. In other parts of the UK, hosts are not required to have liability cover.

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There aren’t specific laws about how much liability coverage you need, but some regions in Scotland do require a minimum amount. So, if you’re in Scotland, make sure to check the details when applying for your hosting license. 

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Conclusion 

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A property management company like Houst can make hosting on Airbnb much easier. They handle guest communication, cleaning, maintenance, and more, so you can relax and enjoy the benefits of renting out your property without all the stress. Houst takes care of everything, ensuring your guests are happy and your property stays in top shape, helping you make the most of your rental income with less work.

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