Airbnb Insurance for hosts

Specialist insurers such as Pikl can provide additional home insurance for Airbnb style hosting. Here are some of the key elements of cover:

Airbnb buildings insurance

This covers the physical structure of the property such as the walls, fixtures and fittings. Like standard home insurance, this covers damage up to the specified rebuild cost of the house. You may be able to claim for some issues that affect the building through Airbnb, although they limit what you can claim for. If you require cover for non-Airbnb related issues (such as a weather event) you’ll need to either arrange this cover separately through insurance. 

Airbnb contents insurance

Contents insurance covers the items inside of a property that aren’t fixed to the building itself, such as a sofa or a television. These are also the types of claims more easily claimed for through Airbnb’s resolution centre when it comes to property damage. However, a dedicated Airbnb insurance policy can also cover you for the entire sum of contents inside the property, which typically runs into £10,000s. 

Theft insurance

Most household insurance policies only cover theft with forced entry. This won’t be the case in most scenarios where you’ve let an Airbnb guest into your property. Trying to resolve this kind of dispute with a guest through Airbnb may also be stressful, especially if you’re involving the Police. Consider a specialist provider such as Pikl that covers theft by a guest.

Loss of income

You’ll likely miss out on potential income if your property isn’t repaired in time for the next booked guest. If Airbnb revenue is your main source of income, this would likely become a serious issue. Pick an insurer such as Pikl that is willing to cover you for this following a claim if this is important to you. This ensures that if you’re out of action for a prolonged period you’re not out of pocket for any bookings you had in place after that 14 day period.

Malicious and accidental damage

Like theft, malicious or accidental damage where it relates to Airbnb style hosting is another key area restricted by most household insurers and is likely to be very stressful if trying to resolve a problem with a guest through Airbnb. Some insurers may choose to cover accidents but not deliberate damage. However, proving guest damage was accidental may not always be straightforward. If guest damages are a major point of concern, speak to a dedicated insurer like Pikl that can cover you for this.    

Public liability insurance for Airbnb

Public liability insurance for Airbnb hosting covers claims brought against you such as a guest injury claim or damage to third party property. Examples of this include:

• A guest trips over an object and falls down the stairs, requiring hospitalisation.
• Faulty wiring catches fire, giving a guest significant burns.
• A guest invites friends over for a party at your house, causing damage to your neighbour’s property.

Hosts are legally liable to pay compensation in cases where they are at fault. Public liability insurance covers you against the stress and financial loss that may occur as a result of this.

Specialist insurance can cover you for larger claims exceeding Airbnb’s $1 million limit, or any liability claim on alternative platforms that don’t provide protection at all. Liability claims can be significant in terms of the sums involved, and liability insurance is one of the most important insurance features you can have. Examples of where a claim could exceed $1 million in compensation include:

• A young person with a lucrative career that incurs serious injuries that require lifetime care.
• Guests from overseas that face repatriation and significant healthcare costs due to injuries (e.g. guests from the United States).
• Significant fire damage to several neighbouring properties.

Public liability insurance is now also a legal requirement when hosting in Scotland. Several regions of Scotland now require more than the $1 million provided by Airbnb. Pikl covers hosts for up to £5 million per guest-related liability claim.

Public liability insurance purchased specifically for hosting doesn’t cover non guest-related events. For example, a non-guest visiting your property and being injured would not be covered under this type of insurance. For that you would need property owner and occupier’s liability, which is covered under standard home insurance policies.

Legal expenses cover

Legal expenses allows you to pursue or defend legal claims where this relates to guest-related activity. Examples of where you may want to use this if insured through Pikl could be taking guests to court or having income paid towards the cost of an accountant if being investigated by HMRC regarding your hosting income. This type of cover isn’t currently provided through Airbnb either.

Pest infestation

Having your property infested with bugs is likely to cause significant disruption and potentially cause you to lose booking income due to the time likely to be taken in completely resolving the issue. Unlike with Pikl, pest infestation is typically excluded by standard home insurers.