Insurance insights

Why choose RentCover ShortTerm?

You may not be aware that properties leased for short-term purposes face a different range of risks compared to long-term rentals. This is why EBM RentCover created RentCover ShortTerm – a unique policy that is utilised for properties rented out for less than six months at a time, including holiday homes, Airbnb accommodation and serviced apartments.

Wondering if RentCover ShortTerm is right for you? Keep reading…

First, what exactly is a short-term investment property?

Essentially, it’s an investment property that is rented or used for a short time and where that arrangement is not subject to a lease agreement.

Does a typical home and contents insurance policy cover this type of letting scenario?

While home and contents policies are usually designed to provide protection against a range of unexpected events that might damage the property (like fire or storm) or result in loss (like theft), it’s usually intended for owner-occupiers and not for people using the premises for commercial purposes – and this includes rental income. That means there may not be any cover for damage caused by a paying guest or, potentially far more seriously, any public liability cover. The policies usually won’t cover tenant-related risks at the property – things like damage (accidental or malicious), theft or loss of income. Cover for tenant-related risks is usually only available through a specialist policy. In addition, an important feature of a policy designed for short-term accommodation is the fact it acknowledges that large periods of unoccupancy occurs. This is a unique risk for holiday homes, and sometimes not included in policies that are designed for long-term rentals (or if it does offer cover for vacant properties, it comes with a higher excess).

What does RentCover ShortTerm offer?

RentCover ShortTerm offers cover for a range of common risks that owners face including cover for damaged, lost or stolen contents, guest damage, legal/public liability (up to $20 million) in case a guest is injured on the property, damage caused by insured events (like fire, water or storm), and for loss of rental income in respect to cancelled bookings due to damage (or in the event that a guest passes away at the property).

Unlike some policies, RentCover ShortTerm covers accidental, deliberate and malicious damage caused by guests, the guest’s visitors and family, and also damage caused by domestic pets who accompany their owner on holiday.

RentCover ShortTerm provides cover not only for fixed contents but also for non-fixed/loose contents. This means all the amenities that the owner provides for their guests at the property – from bed linen and books to barbeques and bicycles – can be covered.

Cover can be taken out for contents and tenant-related risks or include the building too.

What kind of properties can be protected by RentCover ShortTerm?

Cover is available for the different ways the property is offered for rent, whether it’s through an agent or booking agency, privately advertised or listed on a share accommodation platform.

Whether the rental is self-managed or managed professionally, cover can be provided.

Why EBM RentCover?

While RentCover ShortTerm is competitively priced, perhaps even more importantly, the product is supported by EBM RentCover’s award-winning claims and customer service.

Have a question about RentCover ShortTerm? Chat to a member of our Expert Care team by calling 1800 661 662 or send us an enquiry through our website.

*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 here, contact 1800 661 662 if you have any questions.