So you’ve started the process of signing up to use the AirBnB website to make some spare cash from that extra room you have. Perfect. You’re well on your way to lining those pockets. As long as you’ve got a decent looking space, great hospitality and a good location, you’re sorted right?
The things is, you’re probably overlooking one important detail. Yes, when you were filling in the forms to list on AirBnB, you agreed that you had looked at not only the legal implications of renting out your space, but the insurance related ones too. But did you really?
Here’s the catch…
Unfortunately most people assume that by having some kind of insurance in place, they’re covered. However the reality is that up until signing with AirBnB, you’ve been insured on a personal policy and now you’re about to hand over your keys to strangers and make money out of it, which means that you’ve changed over from personal to a business.
I’m sure you’ve heard about how most insurance companies treat claims right? They look for a reason not to pay them. It’s sad, but it’s true. And in this case you’ve given them the best reason, which is “Non-disclosure of material facts”. Now they have a reason not to pay your legitimate claim.
But wait – you called the call centre and told one of the employees that you will be using your property for AirBnB. Which means you told them and now you’re correctly insured right? Right. Except that you’re not actually. The truth is, that statement of “We’re listed with AirBnB” means absolutely nothing to that call centre agent you spoke to – nor is it accurately recorded. Your call hasn’t gotten you any further into being correctly insured.
The THREE important questions you need to ask your insurance provider about listing on AirBnB
- What happens when my short term paying guest burns down my building?
- What happens when my short term paying guest falls down my steps and sues me?
- What happens when my short term paying guest forgets to lock the front door and I get burgled?
The chances are, the words “short term paying guest” is going to result in all of your questions being answered with a resounding “NOT COVERED”.
Incompass can help you
Ensuring that our clients, who rent out their premises to short term paying guests, are correctly (and competitively) insured is what we do. It’s so much a part of what we do that we are the largest guest establishment insurance brokerage in South Africa and are the preferred insurance provider for the NAA and the Star Grading Council.
What kind of cover does a guest establishment require?
We make sure that our clients are correctly insured – which doesn’t only mean that their claims get paid, but they get the specialist cover that they need. Renting out a portion of/your whole house means that you need a hybrid product – something that covers you in your personal capacity and in your newly found business role. Along with covering your own personal belongings like your furniture and vehicles, there are a few types of cover that you need when renting out your space to short term paying guests:
- Public Liability – this covers you for a high Sum Insured when your paying guest hurts themselves on your premises and sues you for it.
- NO Alarm Warranty – depending on your situation, there is no need to ensure that you freak out your guest by ensuring that they put the alarm on every single time they leave the property. You will still have cover.
- NO Forcible Entry Requirement – our guest establishment insurers waive the need to prove that there was forcible or violent entry/exit when items have been stolen in certain situations.
- Accidental Damage – this is covered automatically for incidents like a guest jumping on a coffee table when their team scores the winning goal.
- Damage By Guests – you guest leaves the bath water running and destroys your wooden floors? Covered.
- Trauma Counselling – The unfortunate reality is that if something does go wrong while your guest is staying at your premises, your review is going to be terrible. If you can offer to help them work through the trauma, they are much more likely to give you a good review.
- Loss Of Income – if your guest cancels due to reasons beyond their control, you are able to recoup that loss. (Reasons like a major event cancelled or building taking place next to your premises so your guests leave or the Heathrow airport is snowed under etc).
- Loss Of Keys – if your guest loses their set of keys or leave with them accidentally, you are able to claim for this.
Sounds like something you need? Get in touch
If you are running a guest establishment of ANY kind this cover is definitely something that you need.
CONTACT US HERE TO DISCUSS YOUR GUEST HOUSE INSURANCE REQUIREMENTS
E-mail us / Request a call back / Get a free non obligatory quotation