The rental market is becoming an increasingly popular avenue for property investors and homeowners looking to make a little extra cash. It is important to understand that with the rapid growth in popularity of holiday rental services, like Airbnb and Stayz, comes a host of insurance concerns for property owners.
In most cases, your regular homeowner's insurance will not cover any damage or loss in relation to holiday letting. So it is essential to have the correct type and level of cover.
The below simplifies the type of cover you’ll need for your investment property, depending on whether you are insuring a short or long term rental.
Holiday Rental Insurance
If you rent your investment property on a short term basis, then Holiday Rental is the Insurance you require.
Holiday Rental Insurance is a specialist type of cover that is compatible with short term rental either privately, through a managing agent or through services such as AirBnb and Stayz. This will give you greater coverage so the risk to you and your property is minimised. Holiday Rental Insurance will cover the property and its contents whilst also covering the liability.
Landlords Insurance is required if you have long term tenants – meaning a lease has been signed for a minimum time (usually 6 -12 months). If you are a property investor, you don't want to risk anything happening to your property that could hinder your ability to make a profit from it.
In order to protect your property and any furnishings that you lease along with it, including your carpets, light fittings and blinds; you’ll need to have landlords insurance. This type of cover will protect you in the event that a tenant damages your property or its contents, enabling you to fix the damage as quickly as possible without harming your bottom line. It is also essential to have a liability component to your policy in order to protect yourself.
If your investment property is a unit that has a Strata Insurance policy in place, it is imperative that you have Landlords Insurance to cover the liability within the unit/apartment as this is not covered under a Strata insurance policy.
It is important to note that not all insurance policies offer the same level of cover and that certain damages will not be covered.
No matter the type of cover you choose, it is crucial that you understand the finer points of what is and is not covered under the policy. This can help to prevent any costly mistakes resulting from not understanding your policy properly.
Should you require any additional information or assistance please contact the friendly team at Insurance House.