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The Experts

Switzer Radio: Listing your property on Airbnb

The Experts
Thursday, March 22, 2018

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Thinking of listing a property on Airbnb or already have one? There’s a good chance you’re not covered by insurance.

Campbell Graham, General manager of Insurance council Australia joined Talking Lifestyle: On the Money, to discuss the legal and insurance implications for Airbnb rentals.

 “What if we put our principle property onto Airbnb for six weeks… say we were going to travel Europe… should we inform our insurer that we’re dabbling in investment property stuff?” Peter Switzer of the Switzer Report asked.

Unfortunately, the situation is more complicated than just informing your insurer, according to Graham.

“If you’re listing your private property out for short-term rental accommodation through one of those services, then you’re changing the purpose of the property to commercial use,” Graham said.

“Normal home and contents policies really don't respond to those… if you’re anticipating to use your property in this way, then you need to contact your insurer.”

If the policy doesn’t cover commercial services, you’ll need to find one that is available to you, according to him.

While some contents insurance policies cover for accidents that occur in your home, for example, someone slipping and falling after one too many drinks, but if you’ve rented your property out and someone has a party, you may be liable for their accident costs.

Insurers are reluctant to cover situations like ‘private renting’ due to the nature of accidents that occur and the risk of needing to cover liability. 

So, if you plan on using your property on a rental service like Airbnb, your best bet is to contact your insurer.

To listen to the full interview click the video above.

Published: Thursday, March 22, 2018

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