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Travel

Short-term holiday rental hosts warned not to risk being uninsured

April 13, 2022 by Pha Tran

Home Travel

Short-term holiday rental hosts warned not to risk being uninsured

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News release

Wednesday, 13 April 2022

As hundreds of thousands of Australians head away for the Easter break, the Insurance Council of Australia (ICA) is warning short-term holiday rental hosts not to place their most valuable asset at risk.

The attraction of earning extra income from short-term holiday rental is financially appealing, but for the uninsured it could lead to disaster.

Almost 500,000 Australian hosts have listed their property on short-term holiday rental platforms since 2016 and Easter and Christmas are particularly popular times to list.

However, hosts who offer their properties on short-term holiday rental platforms are most likely not protected for any damage caused by their short-term tenants under their home and contents insurance.

Most insurers regard short-term holiday rental as a commercial use of a property or a business activity.

A home building or contents claim incurred while a property is being rented by short-term tenants may be declined, leaving the host financially liable and potentially vulnerable to financial loss.

Some insurers have responded to the increasing popularity of short-term holiday rentals by offering specialty policies for hosts who self-manage their property.

Cover like this can be tailored to the number of nights the property is rented and the daily cost can be as little as the price of a take-away coffee.

It can cover paying guest-related accidental or malicious damage, theft or attempted theft, personal liability if a guest is injured, identity theft, and strata property damage.

Short-term landlord insurance policies are also available to cover a professionally managed property.

Hosts considering short-term holiday renting should:

  • Check their building and contents insurance policy details prior to advertising on short-stay holiday rental platforms. If the policy doesn’t cover short-term rental look for a specialty policy at findaninsurer.com.au that protects both home and contents while paying guests are staying.
  • Not rely solely on the rental platform’s host protection insurance as there may be gaps in the cover offered.
  • Be aware that home insurance includes public liability coverage, however, the commercial activity of short-term holiday stays may invalidate this cover for some claims.
  • Reduce the risk of theft by removing valuables during the short-term stay.
  • Check strata rules, tenancy agreements and local council laws because these may prohibit short-stay holiday rental.
  • Ensure their property is safe and secure.

Quote attributable to Andrew Hall, CEO ICA:

Short-term renting is a legitimate and attractive activity that turns many homeowners into short-term landlords, but it’s vital that they do this properly and have insurance cover for the unexpected.

The Insurance Council is aware of frightening stories of hosts returning after short-term paying guests have departed to find their house stripped of possessions or significantly damaged.

Short-term rental landlords wouldn’t leave home without locking their property – this Easter they mustn’t leave home without the right insurance cover.

 

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Travel insurance as essential as a passport for OS trips

October 28, 2021 by Pha Tran

Home Travel

Travel insurance as essential as a passport for OS trips

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News release

Thursday, 28 October 2021

The Insurance Council of Australia (ICA) today reminded Australians to make sure they have travel insurance if they are planning to go overseas.

Travel insurance is available for international travel, and some insurers have introduced cover for various COVID-related travel situations to destinations other than those few that continue to carry a Level 4 ‘Do Not Travel’ advisory.

The introduction of COVID cover has not significantly impacted premium costs, and travel insurance remains good value given the benefits it provides travellers if the unexpected happens.

Travellers should go to DFAT’s smartraveller.gov.au for the most up-to-date information about the status and entry requirements of their stopovers and destinations.

An increasing number of destinations, including Singapore, the UAE and Thailand, require overseas visitors to have cover for COVID-related medical treatment.

Travellers should read their policies carefully to make sure it provides cover for their particular circumstances and destinations.

Travel insurance protects travellers for many situations unrelated to COVID, which can include medical cover and assistance, dental cover, changed or cancelled travel plans, lost luggage, and theft.

Quote attributable to ICA CEO Andrew Hall:

Australians love to travel, and with more flights taking off and the Australian Government’s travel advisories updated we’re expecting to see the pent-up demand of the last two years turn into a rush to travel overseas in coming months.

You can’t leave Australia without a passport, and you shouldn’t leave Australia without travel insurance.

Travel insurance remains essential for all the reasons it was pre-pandemic: to provide protection when the unexpected occurs far from home.

Some insurers are now offering cover for a range of COVID-related situations, providing additional protection for travellers if they want or need this as part of their travel insurance.

Things to consider when purchasing travel insurance 

  • Travellers need travel insurance to cover their specific trip – travel insurance is not one size fits all and research is essential to find the product that best suits the individual traveller and the specific trip.
  • Don’t choose a travel policy on price alone – look at the inclusions, exclusions, excess and claims limits.
  • Buy travel insurance when booking and paying for big-ticket items. This means you may be covered if an unexpected event forces cancellation.
  • Not all travel policies will automatically cover COVID – some insurers may have this cover as an add-on for an additional cost and some will include it in the policy as part of the overall cost.
  • Travel insurance can cover cancellation costs if you need to change your plans. Read the product disclosure statement before you buy your policy so you know how it will respond to cancellations and delays.
  • Check your destination’s COVID requirements – some countries will require inbound travellers to not only be vaccinated but have a minimum amount of cover specifically for COVID related medical expenses. You may also be required to have a negative pre-trip COVID test.
  • Product Disclosure Statements should be read carefully to determine inclusions, exclusions and limits, and how the cover responds to COVID-19 for specific situations and destinations.
  • In some countries hospitals will refuse to provide medical assistance if you don’t have travel insurance or the ability to pay upfront. This may be avoided by ensuring you have appropriate travel insurance for you, your trip and activities to cover medical emergencies, particularly if you have a pre-existing medical condition.
  • Carefully read the terms and conditions if you are planning on to use complimentary travel insurance that comes with some credit cards and consider purchasing additional cover.

 

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