In Australia, an Airbnb host was forced to replace her flooring and furniture after an unfortunate accident by her guests.
During a news year’s celebration, the guests lit a bundle of sparklers over Kimberley Johnson-Baxter’s stove before attempting to carry them out the back door. But the guest tripped on his way out, dropping the whole bundle of lit sparklers on the floor, leaving serious and permanent damage to the tiling and surrounding furniture.
While the guests were well-intentioned and did immediately notify the homeowner, the damage was nonetheless done, and repairs were needed. It was only when Kimberley received damage repair estimates of $12,000 to $14,000 that she realized the seriousness of it.
Specialist Airbnb Insurance Coverage Paid the Expenses
Fortunately, Kimberley chose to buy coverage for her property through an Airbnb insurance company, who completely reimbursed her for the costs of the repair. Without coverage, that would have been a massive bill to pay out of pocket. In fact, may homeowners would not have been able to afford an expense of that size.
Another potential area of concern with home damage is lost business income. For example, if you’re property is damaged, and you cannot rent it out for a few weeks or even few months, then you need to calculate how much income you’ll lose. For some property owners, this could add up to thousands of dollars in lost revenue.
And if you’re relying on the Airbnb Host Guarantee or Host Protection Insurance, then you’re out of luck as they simply do not insure your business income like a 3rd party Airbnb insurance company would.
What Are the Odds?
While Airbnb and other property rental services have stated that the chances of something bad happening at your property are incredibly slim, statistics seem to indicate otherwise.
According to a survey performed by an Australian company, 1 out of 6 Australians had broken or damaged property during a rental stay…and 1 out of 5 held a party during the rental period. Some of these issues included a broken kitchen sink and a guest falling through a flight of stairs.
As you can see, there are some very real and very serious risks when it comes to renting out your home – risks that should make you strongly consider obtaining short term vacation rental insurance before listing your home on Airbnb or other platforms.
But don’t take that as a reason you shouldn’t join the lucrative and rewarding business of property rentals. With such a low barrier of entry and minimal to no startup costs, it can be a great way to earn a nice side-income or it could become a full-time business!
While the risks are real, they are always risks everywhere in life, particularly with things that are the most rewarding.
The best thing you can do is ensure you’re adequately prepared for those risks by signing up a reliable and comprehensive short-term rental insurance plan – one that covers your property, assets, business income, and most importantly, you!