Protection for short-term accommodation

It is a policy for properties rented out for short periods of time and offers cover for risks that are unique to short-term rental properties. For example, let’s look at holiday homes – RentCover’s short-term landlord insurance policy (known as RentCover ShortTerm) offers cover for loss of rent when a confirmed booking is unable to stay in the property following tenant damage or insured events.

NOTE: EBM RentCover ShortTerm is designed for properties that are not on a fixed-term lease, and are rented out for less than six months at a time.

RentCover ShortTerm can provide cover for holiday homes, Airbnb accommodation and serviced apartments. Typically, it has the option to cover both contents and building.

When it comes to Airbnb accommodation, RentCover ShortTerm offers cover when a property owner uses Airbnb to let their holiday home or investment property for short stays. However, it does not offer cover when:

• a property owner uses Airbnb to rent a single room (or the entire home) of their main place of residence.  
• a tenant leases a home and then sub-leases a single room (or the entire home) through Airbnb. 

Yes. If you have the right sort of insurance in place, it will continue to cover risks when the property is vacant. If you have RentCover ShortTerm, you also don’t have to pay an unoccupancy excess, unlike some landlord insurance policies in the market.

TIP: With a lot of standard landlord insurance policies, leaving a rental property vacant for long periods of time (and not notifying the insurer about this) can often void cover. So, landlords are encouraged to find the right sort of short-term landlord insurance protection to prevent this from happening. If you have RentCover ShortTerm, you only need to notify EBM RentCover if the property is left vacant or unoccupied for an ‘indefinite period’.

Premiums for a contents only RentCover ShortTerm policy range from about $340 to $480 per annum. For this cost, policyholders receive cover for a range of risks including malicious and accidental guest damage, loss of rent, pet damage, legal liability and insured events (fire, storm and flood). Premiums for building and contents RentCover ShortTerm policies are dependent on several factors including building type and sum insured. Contact EBM RentCover for a quote.

Standard landlord insurance may not work. Holiday homes are often left vacant for extended periods, and they face different risks. RentCover ShortTerm was designed for short-term accommodation like Airbnb homes.

It is important landlords have cover for legal liability. Landlords have an obligation to provide a safe and habitable property for their guests. If, for some reason, the landlord fails at this and a guest is injured at the property, the landlord could be held responsible and may be required to offer compensation. Legal liability (which is covered in RentCover ShortTerm) provides up to $20 million cover when a landlord is found legally liable for an incident, including tenant injury.