Short Term Home letting hosts should talk to Cornish Mutual for additional Home cover
At Cornish Mutual we have been seeing a steady increase in enquiries from Members who are considering becoming hosts for short term lettings websites, such as Airbnb. This is not surprising: sites like Airbnb are growing in popularity, with more people attracted by this type of accommodation anticipating a more authentic experience than they might get in a hotel. With the South West being a top holiday destination we are likely to see more of our Members taking the opportunity to earn some extra income by renting out all or part of their home.
Sites like Airbnb, Wimdu, or Homestay, are online community marketplaces that connect people looking to rent their homes with people who require short term accommodation. Some hosts choose to rent out their house, and perhaps visit friends or relatives nearby for a few days. Others just let out a single room, so they can offer bed and breakfast but remain in the house while their guests stay.
Your Home Insurance will not automatically cover you for being a host
If you are thinking of renting out your house, or a part of your house through such sites or via more traditional letting agents it is important to understand that your standard Home Insurance Policy does not cover you for hosting guests. However, if you contact us at Cornish Mutual we can consider extending your cover for short term letting. In particular the provision of adequate Public Liability Insurance to cover you against third party claims as a result of hosting and an extension for accidental damage cover where it results from the activities of paying guests.
But what about the letting site’s own insurance cover?
You may be aware that most of these sites and some traditional letting agents offer a level of insurance cover. For example, Airbnb covers some damage to your property through its Airbnb Host Guarantee. However, Airbnb stresses that its cover does not extend to a number of risks, including damage caused to shared or communal areas of the home. Other lettings sites have their own policies, so it is worth investigating what insurance cover they offer and in particular fully understand any limitations and exclusions.
Talk to Cornish Mutual first
If you are considering short term letting out your home please call us first. Assuming we are comfortable with the way you are operating as a host, and you are not letting out your property for more than 90 days a year, we may well be able to extend your Home Insurance policy. There will always be a level of risk if you are inviting people into your home, so we will also advise you on keeping your property and valuables safe and secure.
By Graham Nicholls ACII – Chartered Insurer, Technical Leader, Cornish Mutual