Cyber-Extortion: Are you prepared?October 25, 2018
Let’s take a look at the growing trend of putting your house up for rent on platforms like Airbnb.
Tempted by the idea of easy money, many homeowners fail to consider the insurance implications of renting their homes to strangers.
Homeowners policies typically allow you to file claims for losses that occur to the structure of your home or its contents.
These policies also include liability cover in case you or members of your household cause damage to other persons or their property.
But remember, not all insurance policies are created the same way and many exclusions may apply when you rent out your property as a business.
What to look out for:
- Damage to, or loss of, property with no visible signs of forced entry
- Burglaries and no activation of the alarm system by guests
- Liability for injury and/or death
- Damaged or stolen personal belongings of guests by theft or peril
- How can you protect yourself?
- Get as many details as you can from your renters, copies of ID/passports/social accounts, addresses, contact details, a family member, etc.
- Add a security deposit to your listing
- Notify your broker/Insurer of the rental
- Use the rental platform’s inbox to communicate with prospective guests instead of revealing personal details upfront
- Ask valid questions – such as who will be staying, why are they travelling to this area, etc.
- Lock away your IDs/passports, bills and any other personal information to prevent identity theft
- Ask your guest to sign an agreement that holds them liable for stolen or damaged items should there be no evidence of forced entry
- Impress upon your guest that they must take the responsibility to activate any alarm system
- Look at guest reviews as this can give you a good indication of when to decline offers
Before deciding to rent out your house, be sure you have an insurance policy designed to take on the risks.
Please note: Airbnb offer a ‘Host Guarantee’ but this is not insurance and must not be considered a replacement for Homeowner Insurance.