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Prevention
Why choose RentCover ShortTerm?
Managing Director
Sharon has worked in the insurance industry for close to 40 years...
If you are renting out your property on a short-term basis (whether as a holiday home, Airbnb, or serviced apartment) you may face risks that standard insurance simply does not cover. That is why EBM RentCover created RentCover ShortTerm, a specialised policy designed specifically for properties rented out for less than six months at a time.
So, is it right for you? We take a closer look.
What is a short-term investment property?
A short-term investment property is one that is rented out for shorter stays, typically without a formal lease agreement. This includes properties listed on platforms like Airbnb, holiday rentals, or serviced accommodation. While flexibility and higher returns can be appealing, these arrangements also come with unique risks.
Does standard home insurance cover short-term rentals?
In most cases, no. Standard home and contents policies are generally designed for owner-occupied homes, not properties used to generate rental income. This means they often do not cover:
- Damage caused by paying guests
- Theft by guests
- Loss of rental income
- Legal liability claims if a guest is injured
On top of this, short-term rentals often have periods of vacancy, which can further limit or exclude cover under home and contents policies. To properly protect your investment, you should consider specialist insurance designed for short-term rentals like RentCover ShortTerm.
What does RentCover ShortTerm cover?
RentCover ShortTerm is built specifically for the realities of short-term renting, offering protection against common risks, including:
- Guest-related damage. Covers accidental, deliberate, and malicious damage caused by guests, their visitors, and even their pets.
- Loss of rental income. Protection if bookings are cancelled due to insured events.
- Contents cover. Protection for both fixed and loose contents, from furniture and appliances to BBQs and even bicycles.
- Building cover (optional). You can choose to include the building itself, not just the contents.
- Legal liability cover. Up to $20 million if a guest or visitor is injured on your property.
Specialist long-term cover… could that work?
Not all landlord insurance is built for the same purpose. Specialist landlord insurance policies designed for long-term rentals (like RentCover Ultra) are tailored to properties leased under formal agreements, where tenants stay for extended periods and risks are more predictable, such as arrears or damage over time.
Short-term rental policies (like RentCover ShortTerm) are specifically designed for properties with frequent guest turnover, no standard lease agreements, and regular periods of vacancy. This means they are better suited to cover risks unique to short-term accommodation, such as guest damage, loss of income from bookings that are unable to proceed, and legal liability.
Choosing a policy that matches how your property is rented is essential because insurers price premiums based on the level of risk involved. If you insure a short-term rental under a policy designed for long-term properties, you could be underinsured or, in some cases, risk your cover being declined at claim time if the property use has not been accurately disclosed.
Why choose EBM RentCover?
Along with competitive pricing, RentCover ShortTerm is backed by EBM RentCover’s award-winning claims service and dedicated client support. From helping you understand your cover through to managing a claim, our team can support you every step of the way. We pride ourselves on fast and fair claims handling and clear communication, so you are never left wondering what happens next.
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.