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Do you need extra insurance for Airbnb in NZ?
Airbnb Hosting and Insurance
When considering renting out your property on Airbnb, it's crucial to inform your insurance provider and assess whether your current policy covers this activity. For occasional Airbnb hosting, a standard house policy with holiday home and casual letting use may suffice. However, if your property is exclusively used as an Airbnb, commercial insurance coverage is necessary.
Why Do I Need to Inform My Insurance Provider About Airbnb Hosting?
Risk Management
Hosting on Airbnb introduces different risks compared to normal residential use. Your insurer needs to know so they can manage these risks adequately.
Policy Compliance
Failing to inform your insurer could result in a breach of your policy terms, potentially leading to a refusal of claims related to Airbnb hosting.
Adequate Coverage
To ensure you're fully covered for any incidents related to Airbnb hosting, your insurer needs to be aware so they can adjust your policy if needed.
How Can You Do Airbnb Hosting Right With Proper Insurance?
- Understand Your Coverage: Know what your insurance covers and any limitations or exclusions.
- Regularly Review Your Policy: As your hosting frequency changes, periodically review and update your insurance policy.
- Keep Records: Maintain detailed records of your hosting activities to support any potential insurance claims.
How Do I Update My Insurance for Airbnb Hosting?
Contact Your Insurer: Inform them that you’re planning to host on Airbnb and discuss how often you plan to rent out your property.
Review Your Current Policy: Your insurer will help you understand if your current policy is adequate or if you need additional coverage.
Consider Commercial Insurance: If your Airbnb hosting is frequent or exclusive, you may need to switch to a commercial insurance policy.
Troubleshooting: Having trouble organizing Airbnb insurance? Contact us and we can arrange the right cover on a standard home or commercial policy.
Common Misunderstandings
Misunderstanding 1: “Standard Home Insurance is Enough for Airbnb Hosting”
- Many assume their regular home insurance will cover Airbnb hosting, but this is often not the case. Standard policies may not cover short-term rental activities, and it’s crucial to check with your insurer for specific details.
Misunderstanding 2: “Airbnb’s Insurance Covers Property and Belongings”
- Airbnb provides Host Protection Insurance, which primarily covers liability for injuries to guests, not damages to the house or personal belongings. Relying solely on Airbnb’s insurance leaves a gap in coverage for property and belongings.
Misunderstanding 3: “Occasional Airbnb Hosting Doesn’t Need Special Insurance”
- Regardless of how frequently you host, the risks associated with short-term rentals require informing your insurer. Even occasional hosting can necessitate additional or different coverage.
Misunderstanding 4: “All Insurance Policies Offer Similar Airbnb Coverage”
- Coverage for Airbnb hosting varies significantly among insurers. It’s important to consult with a knowledgeable broker, like Gerrards, to find a policy that specifically caters to your hosting needs.
Misunderstanding 5: “The Claims Process for Airbnb Hosting is Straightforward”
- Claims related to Airbnb hosting can be more complex than standard home insurance claims. There might be different procedures or additional documentation required, especially if there’s a mix of personal and commercial insurance aspects involved.
How can Gerrards help?
At Gerrards, as an experienced insurance broker in New Zealand, we specialize in Airbnb insurance and can assist you by:
- Choosing a Suitable Policy: We can guide you to the correct policy for your Airbnb property.
- Explaining the Fine Print: Our team will help you understand the terms and conditions of your policy.
- Managing Claims: Should you need to make a claim on your property due to Airbnb use, we can support you through the process.
Remember, Gerrards is here to ensure that you are adequately prepared for any hiccups on your journey, including the flu. Whether you need advice on the right coverage or assistance with a claim, we’ve got you covered.
