Can I insure a dedicated short-stay house or unit with initio?
No. If your unit, wing, house, shack, crib (and varieties of these) is:
1. Not used by you as your home or part of your home, and
2. Is rented only to short start guests
It is dedicated short-stay accommodation. This is considered a commercial operation and requires a commercial insurance policy.
A dedicated short-stay living unit (or dwelling) that is only used for guest accommodation cannot be insured by initio. This is because when a dwelling is used solely for guests it becomes a commercial property – similar to a motel, and as such the EQC’s $150,000 of natural disaster cover for domestic houses will not apply to a ‘dedicated short stay’. A domestic house insurance premium and policy like initio’s works on the basis that part of the natural disaster risk is covered by the EQC.
A dedicated short stay property should be covered under a commercial material damage policy where the insurer covers 100% of the natural disaster risk. We recommend that you contact a commercial insurance broker to assist with insuring this property.
The definition of a dedicated short stay property is: A Living unit that is set up purely as a commercial enterprise and the owners do not use it or intend to use it for their own purposes (or for somebody else to use it as their home).