Looking to let your second property, or set it up as an Airbnb? It can be a lucrative business – in London alone, the number of properties listed on Airbnb quadruped between 2015 and 2020, and the average London Airbnb listing charges £125 a night.
Airbnb has disrupted the hotel industry, and given holidaymakers and weekend trippers a different option – one that can give them greater privacy and space, more convenient locations, and the charm of a unique experience in a place someone else has made feel like home.
While opening your home (or second home) to a stream of strangers might not be everyone’s cup of tea, for a growing number of people it’s a great way to create additional income from your property.
When considering letting a property of any kind, whether long-term via an agent or as short-term lets on Airbnb or another platform, you have to consider your own security.
Standard home insurance isn’t suitable for a home that’s being let out, but bog-standard landlord cover might not always fit the bill for less traditional kinds of rental, either.
Do I need special Airbnb insurance?
There are, of course, companies out there which have been set up just to offer Airbnb insurance. And while you can go down that route, lots of holiday home insurance policies can accommodate your cover needs.
Holiday homes can have lots of different purposes, so it’s important to keep these in mind when setting up your insurance policy. Having a holiday home which you rent out to others will need a different type of cover compared to a holiday home you just keep for yourself, for example.
Whether your holiday home is for personal use or rented out to holidaymakers, you’ll need to have buildings and contents insurance in place. This will protect the building itself and contents from most types of accidental or malicious damage, including fire, theft or storm.
When you’re letting your property out to others, however, you’ll need to think about additional protection such as landlord’s contents cover and property owner’s liability.
- Landlord’s content cover will provide cover towards the repair or replacement of furniture or appliances which are left in your property. Accidents do happen, so it’s important to make sure you’re not left out of pocket after holidaymakers leave.
- Property owner’s liability insurance provides cover for legal expenses regarding landlords’ legal liability. This includes potential claims made against landlords or property owners for personal injury suffered by those visiting or staying on the property.