Will your insurance policy(ies) be effected if you open up for AirBNB

Insurance Signpost Mean Claim Excess Contract And PolicyThe tragic death of a guest at a AirBNB has once again reminded me of the potential risks of opening your house up via AirBNB or any similar service.

In this case, the homeowners were effected by the death of a guest.

As I have reported in earlier posts, it is likely that your home policy will not respond to theft and or damage caused by a visitor while many others exclude public liability coverage for guests.

This is not just for AirBNB and can effect people opening their home for foreign exchange students or the like.

If you are in any doubt please check with your insurance broker or insurer.

I have worked with the team at LMI Legal to create a terms and conditions of stay contract for use by property owners opening up their home to AirBNB guests. This covers a number of important areas but as Mr Foster is reported as saying, some things you simply cannot contract out of.

It is not just AirBNB that is of interest here. Those engaging in “house swap” arrangements, of the sort that are organised through someone like https://www.homeexchange.com  would also need to check their coverage. I know a lot of retired people who do this quite a lot and the liability aspect has never crossed their mind until I raise it.

No money changes hands between the participants in the swap but an insurer could well argue that it’s a commercial transaction in that there is offer, acceptance, consideration etc.


The same issue can apply to cars being used for Uber or any fare paying passengers.

Again the warning is the same. Check your policy and if you are in any doubt, speak to an insurance broker or your insurer.

One response to “Will your insurance policy(ies) be effected if you open up for AirBNB”

  1. Kristopher says:

    Hi Allan, very relevant post with the growing popularity of the shared economy. It’s worth noting, however, that Airbnb provides $1m automatic liabiliy coverage for its Australian hosts (https://www.airbnb.com/host-protection-insurance) as well as a limited level of property coverage (https://www.airbnb.com/guarantee). Good luck testing it out come claim time though!

Leave a Reply