Home Info Centre ‘Be my guest…’ - choosing the right insurance for holiday lets
‘Be my guest…’ - choosing the right insurance for holiday lets

‘Be my guest…’ - choosing the right insurance for holiday lets

31 May 2019 3 mins read

The number of Aussies offering up short stay rooms and entire homes to rent on sites like Airbnb, Stayz and HomeAway is surging. There are now more than 200,000 properties in 800 towns and cities listed on Airbnb alone – and the growth shows no signs of slowing. 

The popularity – and profitability – of the share economy accommodation phenomenon has meant many homeowners who rent out rooms, or entire homes, have effectively become landlords.

Furthermore, as many investment property owners across the country grapple with the prospect of high vacancy rates and falling rents, the option to let their properties for short periods is seeing many forgo traditional (fixed-term) leasing in favour of the short-term market. 

Head’s up: There are different landlord policies for different types of letting because each type of tenancy agreement has its own unique set of things that could go wrong. Landlords looking to switch from fixed-term leasing to short-term also need to switch their insurance.

Whether the host is new to being a landlord or an experienced operator switching to holiday letting, it’s important they have the right insurance cover in place.

Too often, owners do not realise their normal home and contents insurance, landlord insurance (designed for traditional fixed-term leasing) or the insurance offered by some platforms may not cover them for damage or liability caused by a paying guest.

Any owner renting out their property short-term – as a standard holiday let or through a share accommodation platform like Stayz or Airbnb – is encouraged to take out a landlord insurance policy designed for the short-term market. 

A word of caution: Not all landlord insurers offer short-term policies and some specifically exclude Airbnb and other platforms.

RentCoverShortTerm is designed for serviced apartments, holiday homes, Airbnb accommodation and other share accommodation platform rentals. Our tailored short-term policy can cover both building and contents and offers comprehensive protection for the rental including:


The property is protected against a range of insured events such as fire, storm damage and water damage (including flood).

In addition to damage to the building (should you choose to insure the building and not contents-only), the policy will cover damage caused by tenants and their pets or guests, whether the damage is accidental or malicious. 


As short-term rentals generally come fully furnished, owners need cover for the home’s contents beyond the regular fittings and fixtures. Our RentCover ShortTerm policy provides contents cover for items supplied in the home – including furniture and whitegoods, gaming consoles, entertainment equipment, linen, crockery and cookware.

The policy also covers damage/loss of contents as well as theft by tenants and their guests or third parties e.g. burglars.


Importantly, our policy includes up to $20 million in liability costs in case a tenant or guest is injured on the property.   

Loss of rent

A landlord policy specifically designed for short-term leasing like ours will cover the cost of lost rent. The way in which loss of rent is covered in short-term policies is different to that for fixed-term leases. For example, rent default is not covered but lost rent is often covered when a booking is cancelled due to an insured event.

At EBM RentCover we are here to help. If you have any questions about short-term accommodation insurance, contact us

Now you have a better understanding about different types of insurance for short-term accommodation, check out our RentCover ShortTerm policy.

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are there, contact 1800 661 662 if you have any questions. 

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