Saturday, 9 November 2023

The Insurance Council of Australia (ICA) is today urging homeowners planning on renting out their properties over the summer holidays to ensure they have the right insurance in place. 

Standard home and contents insurance can exclude coverage for short-term rentals and often separate holiday rental insurance is required. 

Holiday rental insurance is specifically designed for properties that are rented out for a short amount of time, such as holiday homes or homes being rented temporarily on Airbnb or other home stay platforms. 

This type of insurance can protect homeowners from financial losses if something goes wrong, such as accidental damage to property, theft of belongings, or liability claims from guests. 

When choosing a holiday rental insurance policy, the Insurance Council encourages homeowners to read the policy carefully to understand what is and isn’t included. 

Here are some tips for homeowners who are planning to rent out their properties for the holidays: 

• 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 that protects both home and contents while paying guests are staying. 
• Be aware that rental platform’s host protection insurance may not cover all the potential damages you expect. 
• 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. 

Comment attributable to Andrew Hall, CEO Insurance Council of Australia:  

Embracing short-term rental opportunities can be worthwhile for homeowners, but proper preparation and insurance coverage are essential to mitigate potential risks. 

Before welcoming visitors to stay in your home, talk to your insurer about what is and isn’t covered, and consider specialised coverage for peace of mind. 

Wednesday, 6 December 2023

A new survey has revealed a concerning trend of uninsured travel among Australians, with a significant number of people putting themselves at risk by traveling overseas without adequate protection.

The survey of 1000 travellers, conducted by Quantum Market Research on behalf of the Insurance Council of Australia and the Department of Foreign Affairs and Trade's Smartraveller, found that one in six Australians (16%) were not covered by any form of travel insurance on their last overseas trip.

This lack of coverage was particularly prevalent among younger travellers, with more than half (60%) of those aged under 30 saying they would consider traveling overseas without insurance in the future.

The survey also found that even among those who do have travel insurance, many are overconfident about their coverage and have not properly read their policy documents.

Just one in five (19%) of insured travellers said they had spent time reading every detail of their product disclosure statement (PDS) before traveling.

The survey found that one in seven (15%) recent travellers who went without insurance said they did so because they couldn't afford it.

In addition, a third (34%) of travellers said they will consider traveling without insurance to save money in response to the rising cost of travel.

Key survey findings include:

• One in six (16%) Australians were not covered by any form of travel insurance on their last overseas trip.
• Younger travellers (aged under 30) were most likely to travel without insurance (60%).
• Even among insured travellers, many are overconfident about their coverage and have not properly read their policy documents (19%).
• The rising cost of travel is prompting more Australians to travel without insurance or to take risks that may not be covered (34%).
• The majority (86%) of travellers will find ways to keep costs down while traveling, which may increase their exposure to risk.

Comment attributable ICA CEO Andrew Hall:

These findings are concerning, as they suggest that a significant number of Australians are putting themselves at risk by traveling without considering potential health and safety risks or purchasing travel insurance.

Things we take for granted in Australia, such as the public health system, are not free or even available to you once you leave the country. Personal responsibility plays a big part in your travel plans and it’s important to read the details of your policy, so you know you are covered.

Travel insurance is as important as your passport – it can provide valuable protection in the event of an unexpected event, such as a medical emergency, lost luggage, or flight cancellation.

As we head into the holiday season, we urge all Australians to make sure they are properly insured before traveling overseas and to be aware of the risks they are taking.

Thursday, 3 November 2022

Australians plan to travel more in the future but after two years of lockdowns there is an atmosphere of caution among many of those intending to travel, according to a new survey released today by the Insurance Council of Australia (ICA) and the Australian Government’s Smartraveller website.

The 2022 joint survey* shows that an alarmingly high number of people hold mistaken beliefs about the support they would receive from the Australian Government if something was to happen to them when overseas.

The survey also shows that a significant number of under-30s are planning to leave Australia without the protections afforded by appropriate travel insurance.

The key takeaways from the survey include:

• Pent-up demand: 70 per cent of all respondents and 78 per cent of under-30s say they are planning to travel more often in future in response to being unable to travel during 2020 and 2021.
• Travellers are cautious: Two thirds (68 per cent) say the pandemic has made them feel less confident to travel overseas and nine in ten (86 per cent) say they’ll be more cautious about travelling to places where it could prove harder to get back to Australia in a crisis.
• Covid cover: 95 per cent say that cancellation cover for claims relating to Covid-19 will be an important consideration when they come to purchase travel insurance.

• Expectations of consular help: More than two thirds (68 per cent) think that if an Australian has a medical emergency overseas, a representative will ensure they get the medical treatment they need. Fifty per cent believe that if an Australian has a medical emergency overseas the Australian Government will arrange and fund repatriation.
• Risky under-30s: 12 per cent of under-30s are ‘active rejectors’ of travel insurance who consciously plan to travel without insurance, in comparison to 3 per cent of those aged over 30. The most common reason given for this is being unsure that travel insurance is needed. 

In addition to meeting Covid-related customer expectations, travel insurers are developing a range of additional benefits to further assist customers. These include mobile access to real-time safety alerts based on location and risk and ‘on-the-go’ purchase of cover for some higher risk activities.

Quote attributable to ICA CEO Andrew Hall:

Two years of lockdowns with no international travel means many Australians are planning to head overseas in coming months.

Accidents and emergencies can happen anywhere, meaning travel insurance remains a vital protection.

You couldn’t travel overseas without your passport, and you shouldn’t travel overseas without travel insurance, no matter the destination.

* 2022 Quantum Market Research survey on behalf of Smartraveller.gov.au and ICA, 1,001 Australian, who had either booked or were actively planning an overseas trip in coming months