There has been some disturbing news in the weekend papers about people who have taken in short term guests from the Airbnb web site and subsequently found that their household insurance will not respond to a claim, even when the loss has nothing to do with the actual letting.
The Airbnb indemnity covers the host against a number of contingencies, but not those that are not the fault of the guest. So if you suffer, for example, an electrical fire, some insurers say that non – disclosure currently enables them to void their policies.
Until the new Insurance Act 2015 comes into force, non-disclosure can still allow some insurers to escape their obligations to respond to a claim.
Even when they do respond, the policy wording may not cover the consequences of letting out a property.
With more and more people making use of their spare rooms or holiday homes to augment their income it is important to ensure that you first tell your insurers about these activities and then ask them to tailor their policy cover to suit your needs.
Some household policies do not cover Business use (including short or long term lets) unless an extension is granted. This means that your Personal Liability exposure to paying guests will not be covered without such an extension.
The income that you gain for letting out your properties needs to be noted by the insurers, otherwise you may not be able to recover income that you would otherwise gained if you suffer a serious fire or other loss at your home.
With our flexible Homes2Insure policy and the other policies that we can offer we can normally design cover that will give you the protection that you need without fear of being fobbed off with the dreaded “small print”!