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Author Archives: Tim Cheers

How could the growing trend for ‘hosting’ through sites such as Airbnb affect your household insurance?

Renting out a room, garden studio or even an entire house through a property rental website such as Airbnb, Onefinestay or Roomorama is becoming more popular here in the UK.  While this opportunity may provide you with some extra income, you need to be aware of the insurance implications before allowing guests into your home.

A standard household insurance policy gives cover for the policyholder and their family who permanently reside at the address.  However, typically cover isn’t automatically extended to anyone paying to stay in the property, which would be the case if you rented out part or all of your property through one of the above mentioned websites.

Validity of policy cover

Unfortunately, this means that allowing paying guests within their home could potentially affect your insurance cover.

Insurers ask questions relevant to the risk they are being asked to cover and they rely upon the answers provided by the policyholder.  If a policyholder fails to mention that they will be allowing paying guests to reside at their home, irrespective of the length of time, then you may find that certain claims are not covered or their entire policy is voided.

While this can be frustrating – and expensive – at the time, having a claim declined or a policy voided can also make it much more difficult to obtain cover in the future.

Liability risks

Policyholders may also face issues around liability.  While a household policy would normally provide cover for claims due to the negligent act of the policyholder, it is usual to have an exclusion for liabilities arising from your job, business trade or profession. The liability section therefore excludes cover for injuries caused negligently to paying guests.

This is relevant if, for example, a guest tripped on the stairs, injuring themselves, due to loose carpet which the policyholder was aware of, then the policyholder could find themselves meeting the cost of compensation from their own pocket.

Host guarantees

As well as a lack of awareness about the implications for their household insurance, many people who allow paying guests to stay in their home may believe they have protection, for losses and damage incurred by the guest.

Airbnb introduced a host guarantee, for its customers, after a user’s New York apartment was trashed by a ‘friendly’ guest back in 2011.  This guarantee provides up to £600,000 of protection for damage caused by guests but it’s important to note that this isn’t insurance and includes a number of conditions and exclusions.

For example, Airbnb’s guarantee excludes cash, pets, shared areas and personal liability and has lower levels of protection for items such as jewellery, collectibles and artwork.  This could leave a policyholder who allows paying guests within their home to be out of pocket despite the fee paid by the guest.

Awareness Campaign

There are potentially expensive implications of relying on the guarantee, if provided at all, by the rental website and the lack of cover under a standard household policy. We believe it’s important to raise awareness among our clients of the risks they might be taking if they were to partially or fully rent out their home. ip address . It is only by understanding fully, the risks which the policyholder will potentially be exposed to which will enable them to make an informed decision about renting out their property.

At Cheers Insurance Brokers we can source the correct cover with insurers who understand the risks involved with holiday rentals and short lets.  Most standard household policies do not give adequate protection to policyholders who want to rent out space in their homes. expired domain list . web mentions . web whois web whois

Why use an Insurance Broker?

Tim Cheers says – “Society is becoming more and more litigious and it’s becoming impossible to read and absorb all the written information that’s put before you”. Buying insurance policies on the web may seem effortless but do you really know what your’e buying? Most importantly will it cover you when you need it to? Don’t take a chance… Continue Reading

Tips on protecting your Home during Winter

The tail end of 2013 and the beginning of 2014 saw one of the worst series of winter storms in the UK for over 20 years.  Hundreds of thousands of properties were left without power at some stage, wind speeds of up to 109 mph were recorded and the east coast of England experienced the… Continue Reading

Pearls of Wisdom for your Jewellery Insurance

Insurance cover up to £15,000 for single items of jewellery. Insuring expensive jewellery and watches can sometimes be  difficult, as standard ‘off the shelf’ home insurance policies usually only cover modest values, typically a single item limit of £1000 and up to £5000 in total. The answer is to arrange cover to include your contents, jewellery… Continue Reading

Your Empty Home Could Leave You Uninsured

If you own a property that is unoccupied for a length of time you may need a different insurance policy as most underwriters only allow up to 30 days for a property to be vacant. Increased risk When a home is unoccupied there is a greater risk as the property can go unchecked for water… Continue Reading
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