Feature: Renting your home on Airbnb? Getting the right insurance is harder than you would think

Published On : 01 Dec 2015

Renting your home through Airbnb may void many home insurance policies, a significant - and unsuspected - problem for the thousands of Airbnb landlords in the UK.

Pen Underwriting's Andy Westby said "Many people rent out their home through Airbnb without fully realising the insurance implications. Home insurance policies are not normally designed to accommodate tenants, even short-term rentals.

Airbnb claims to offer "peace of mind" with a guaranteed payment of up to £600,000 in the event of damage by tenants.

But it is not insurance, and Airbnb's own advice is that "it is does not replace insurance". Yet, under many home insurance policies the insurer is within their rights to refuse to pay out on a claim if it can connect the problem to the tenant.

Pen Underwriting's e-Solutions team, which specialises in non-standard home cover, is looking at ways to meet the needs of short-term landlords in this growing market.