Australians urged to secure right insurance when renting out homes for summer – ICA

Holiday rental insurance is specifically tailored for properties rented out briefly.

Those who are planning to rent out their properties for the summer holidays should secure the appropriate insurance plan, urged the Insurance Council of Australia (ICA).

"While embracing short-term rental opportunities can be rewarding for homeowners, thorough preparation and adequate insurance coverage are crucial to mitigating potential risks. Before hosting guests in your home, engage with your insurer to clarify coverage details and explore specialised options for added peace of mind." Andrew Hall, CEO of the ICA said.

Regular home and contents insurance may not include short-term rentals, necessitating the need for dedicated holiday rental insurance. Holiday rental insurance is specifically tailored for properties rented out briefly, such as holiday homes or residences temporarily leased through platforms like Airbnb. 

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This specialised insurance provides financial protection for homeowners in cases of accidental property damage, theft of belongings, or liability claims from guests.

The ICA encourages homeowners to carefully review holiday rental insurance policies to grasp the inclusions and exclusions.

Examine existing building and contents insurance policies before listing on short-stay rental platforms. Seek out a specialised policy if the current one does not cover short-term rentals, ensuring protection for both the home and its contents during guest stays.

Understand that host protection insurance from rental platforms may not cover all expected damages. Additionally, homeowners should minimize theft risks by securing valuables when guests are present for short-term stays. Check strata rules, tenancy agreements, and local council laws, as these may impose restrictions on short-stay holiday rentals, pressed the ICA.