Quote Four would like to know if you have considered joining the "sharing economy" and renting out your house or guest room with Airbnb.
According to The Telegraph, nearly 80,000 British homeowners are using this popular online rental marketplace to rent out all or part of their home for additional income. This number has almost doubled compared to the previous year.
Airbnb is a community website where you can rent your property or room for a small fee. Short-term tenants are often looked after, hosts advertise their property or room online via the website or the app, and payments are processed directly via Airbnb, with a 3% commission. The site is heavily focused on reviews to help users sort out both rude hosts and troubled guests.
According to a recent study – a collaboration between London economist Dr. Margarethe Theseira and Airbnb – the site generated £ 502 million in economic activity in the UK last year alone. This research also found that 80% of the hosts rent their primary residence to supplement their income, which means that the location supports almost 12,000 jobs.
What are the potential dangers?
If you do not fully own your property, you may experience problems with your mortgage provider as your mortgage agreement may prevent subletting. You could also run into problems if your activity means that your property should be classified as an apartment building (HMO) and there is a risk that your home insurance will become invalid.
Although Airbnb has a guarantee, it is important to consider protection, such as rental insurance, to cover possible losses.
What protection does Airbnb offer?
Airbnb offers a guarantee for damage up to £ 600,000, but emphasizes that this is not an alternative to insurance.
Last year, a "Host Protection Policy" was introduced that protects a host against claims against him – a form of liability insurance, so to speak. This has various limitations and does not apply to things like theft, pets, cash, and valuables.
Despite this guarantee, Airbnb strongly recommends that you take out your own insurance.
The Airbnb website says: “The host guarantee is not insurance and should not be considered a replacement or replacement for homeowner or tenant insurance. The hosts may wish to take out independent insurance to insure valuable items such as jewelry, works of art, or collectibles that have limited protection under the host guarantee. "
You can read the full Airbnb policy Here,
What coverage do you need?
The landlord insurance covers a property owner against financial losses that could be associated with the rental of the property. The guidelines usually cover the building itself and all the content inside the landlord – useful if the property is set up, for example. Different insurance policies usually cover different aspects, but issues such as flood damage and theft as well as public liability are usually taken into account.
If you are dependent on income from an Airbnb listing, you can take out insurance against loss of booking for emergencies within the framework of your landlord insurance. B. a pipe. Some rental insurance companies even offer the guest alternative accommodation in the event that something goes wrong.
Should you think about it?
If you own all of your property, there is a risk that your home contents insurance will become invalid if you take in an Airbnb guest. This is seen by many providers as the actual B&B use of your home. In addition to the landlord insurance, it may therefore make sense to consider upgrading your home insurance.
Regardless of whether your customer is an Airbnb host because they want to meet more people or earn a small income, it is important that you help them get the right coverage. For more information on the type of insurance that Airbnb rental companies are eligible for, please contact.
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