Can I insure my house that’s rented to guests?
Yes. We can insure some homes and holiday homes that are occasionally rented to short-term guests through platforms like Airbnb, Bookabach or similar services, provided they meet our eligibility requirements.
If you live in your home and occasionally rent out part of it to short-term paying guests, you’ll usually only need one policy that covers both your home and the short-term rental activity.
Key takeaways
- This policy is designed for people who live in their home and occasionally rent out part of it to short-term paying guests.
- Short-term guest stays are up to 90 days per booking.
- The rented area must also be used by you, your friends or your family between guest stays.
- You’ll only need one policy that covers both your home and the short-term rental use.
- The policy can include cover for your home, guest-related damage, loss of rent and your legal liability to guests.
- Standard house insurance may not provide the right cover for short-term guest accommodation, so it’s important to choose a policy designed for this type of use.
Whether you live in the home or own a holiday home, the insurance you need depends on how the property is used. If you occasionally rent it to paying guests while still using it yourself or with your family, we are likely able to provide cover under our custom residential products. If it’s more of an investment property being used for short term lets, you’re most likely going to need a commercial cover. In that case, we’d recommend getting in touch with a broker who can provide the best commercial solution.
You need to purchase the correct policy, depending upon your specific situation. We have an option for the residence where you live occasionally let on Airbnb and also an option for your family holiday home that is also occasionally let on Airbnb.
Alternatively, if you are handing your property over to a holiday home management company under a full management contract, where they effectively have control over your property, then for the purposes of insurance it is not considered your holiday home and we will not be able to provide cover. This is because with a full management contract you lose your entitlement to occupy the property whenever you wish, which means that there is no cover provided by the Natural Hazards Commission (NHC). We cannot provide cover if the NHC is not providing cover.
Examples of what we can cover
- Secondary house you use occasionally for yourself and your family (e.g. beach house rented on Airbnb when you’re not there).
- Second living unit at your house rented to short term guests, but used by yourself and family when it isn’t rented.
If you have a holiday home that you sometimes rent to guests, to qualify as a holiday home, the owner must;
- demonstrate use of the property, and;
- Have the right to occupy the property at will, and;
- Store personal belongings at the home.
Examples of what we can’t cover
- Holiday home you rent on Airbnb or similar guest site that you don’t use yourself.
- Extra living unit at your main house that you rent only to short terms guests, and don’t use yourself.
- House or Lodge with a Bed & Breakfast function for short term guests.
- Property managed by a commercial organisation that’s set up to rent the property to guests on your behalf.
- Properties where your tenant sub-lets to others, other than a long term flatmate arrangement
If you’re still unsure about your property, you can contact us.
Which option applies to you?
| Situation | Can we help? |
|---|---|
| I live in my home and occasionally rent out a room to paying guests. | ✅ Yes |
| I live in my home and occasionally rent out the entire home for up to 90 days while I’m away on holiday. | ✅ Yes |
| I have a holiday home that my family and I use, and we occasionally rent it to guests when it’s vacant. | ✅ Yes |
| I have a holiday home that I rent to guests and don’t genuinely use myself as a holiday home. | ❌ No |
| My property is fully managed and operated as a holiday home by a holiday home management company. | ❌ No |
| I have a rental property that I’ve converted from a long-term rental to short-term guest accommodation. | ❌ No |
Where we can help, it can often be done with one dual purpose policy. It includes cover for your own use, eligible guest stays, guest related damage, legal liability and loss of rent in some situations.
Not sure which category your property falls into?
Get in touch with us before you purchase a policy. We can help you work out which cover is right for your situation.
Frequently asked questions
Does Airbnb provide insurance for hosts?
Airbnb offers AirCover for Hosts, but it isn’t a replacement for house insurance. AirCover has its own terms, conditions and exclusions, so it’s important to have insurance designed for your property and how it’s used.
Do I need to tell my insurance provider if I’m hosting on Airbnb?
Yes. Short-term guest accommodation changes the risk profile of your property. If you don’t tell your insurance provider, it could affect your cover.
Can initio insure me if I rent out my holiday home on Airbnb?
Yes, provided you and your family genuinely use the holiday home yourselves, you have the right to occupy it whenever you choose, and it isn’t operated as a commercial accommodation business, ie solely for Airbnb use.
Can I insure a holiday home that’s managed by a holiday home company?
No. If you’ve entered into a full management agreement where you no longer control when you can use the property at will, we can’t provide cover.
What’s the difference between a holiday home and an Airbnb business?
A holiday home is still primarily your property for your own use. An Airbnb business is used mainly or solely to provide guest accommodation. Although it may not look like a traditional motel, it’s treated as such for purposes of insurance.
Learn more
- Home and paying guests
- Insuring your home with an attached flat
- Should you rely on the Airbnb host guarantee?
Written by Carmen Jones, Projects Support Lead at initio.
Carmen has more than 40 years of insurance experience across customer support, claims, broking and underwriting. Since joining initio in 2021, she has progressed from the sole member of the Support team to Head of Support, and now Support Projects Lead. Carmen is an ANZIIF Senior Associate CIP and holds the ANZIIF New Zealand Compliance Certificate for Financial Advisers. Her industry knowledge supports her work across customer service, underwriting and content development.