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Airbnb Insurance Coverage
Airbnb
Airbnb hosting impacts your house and contents insurance in New Zealand. Whether you host occasionally or use your property exclusively for Airbnb, different insurance requirements apply.
What Cover Does My Airbnb Need?
Selecting the right insurance for your Airbnb in New Zealand depends on how you use your property:
Residential House and Contents Insurance:
For Occasional Airbnb Hosts:
- Suitable for properties rented out occasionally.
- Ensure the policy includes personal liability protection and property damage coverage.
- Confirm with your insurer that your home and contents use is set to holiday home including letting.
Commercial/Business Insurance:
For Regular or Full-Time Airbnb Hosts:
- Necessary for properties primarily used as Airbnb rentals.
- Key coverages include commercial property insurance, public liability insurance, statutory liability and business interruption cover.
How Do I Choose The Right Cover?
Decide based on your hosting frequency and consult with a professional insurance broker like Gerrards to ensure your policy aligns with your hosting activities and offers comprehensive protection.
Airbnb Insurance Claims Examples
The following examples illustrate the importance of proper insurance coverage:
Fire
A fire caused by an electrical fault damages your property, making it uninhabitable. Commercial Property and Business Interruption insurance can cover repair costs and lost revenue, respectively.
Flood
An unexpected flood damages your home’s structure and contents. Commercial Property and Plant & Contents Insurance help cover the costs to repair and replace the damaged items.
Earthquake
A significant quake results in substantial property damage. Once again, Commercial Property Insurance proves essential in covering these unforeseen costs.
Vandalism by Guests
A guest vandalizes the contents of a room. Plant & Contents Insurance can cover the replacement cost.
What to Watch Out for with Airbnb Insurance
Avoid these common pitfalls when securing Airbnb insurance:
Insuring it under a home policy and not disclosing the Airbnb activity
Failure to disclose commercial activity can result in denied claims or policy cancellation. If you use the Airbnb more than twice a year for personal use, some insurers will include cover under a home policy as long as the activity is disclosed. If you do not personally utilise the Airbnb at all, it will need to be covered by a commercial policy.
Sums insured too low
Underestimating the replacement costs of your property or contents can leave you significantly out of pocket in the event of a claim.
Forgetting about loss of profits
It’s crucial to consider potential business interruption or loss of rent to protect against losses.
Excluding Liability Cover
This is typically included and can protect against costly claims for damage or injury.
How Much Does Airbnb Insurance Cost?
Typically, annual premiums for comprehensive Airbnb insurance in New Zealand range from $2,500 to $5,000. Several factors influence this cost, including:
Size of the Airbnb
Larger properties generally come with higher premiums due to the potential for more significant losses.
Location
Properties in areas prone to natural disasters or high crime rates may attract higher premiums.
Who is being covered
The number and nature of guests can impact the price.
Claims history
A history of previous claims can result in higher premiums.
Level of cover required
Comprehensive coverage will cost more than basic policies.
Types of cover required
The more types of coverage you add, the more expensive the policy will be.
How Do I Buy Airbnb Insurance?
As expert brokers, Gerrards can simplify the process of purchasing Airbnb insurance. We assess your individual needs and navigate the marketplace on your behalf, ensuring you get the best possible deal and the right cover.
Why Gerrards?
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