You are here: Home - Insurance - News -

New pay-as you-go home insurance product for Airbnb users

Written by: Paloma Kubiak
If you rent out your property via sites such as Airbnb, you could invalidate your home insurance. A new pay-as-you-go scheme can cover you in case of accidents or thefts.

A new pay-as-you-go insurance product aimed at people who rent out their home to paying guests has launched.

‘Host insurance’ from Belong Safe allows people who rent out a room in their home, their entire property through Airbnb-style schemes or who home-swap the ability to get house insurance on a day-by-day basis.

It claims to be first pay-as-you go home insurance product on the market.

Home sharing sites such as Airbnb and OneFineStay have soared in popularity in recent years, as homeowners look for new ways to earn extra income. However, many of these people don’t realise that having paying guests could invalidate their home insurance as using your home to make money is deemed a commercial activity which usually falls under a landlord or B&B policy, rather than a standard home insurance policy.

Landlord polices tend to be sold on an annual basis making cover expensive for those who only rent out their property on an adhoc basis.

Belong Safe said cover starts from 78p per day, although it expects most customers to pay in the region of £4-£5 per night for the insurance with a hefty £1,000 excess for claims. This is reduced by £10 per night for the length of your guests’ stay.

Peace of mind in a growing market

According to PricewaterhouseCoopers, the home-sharing market is set to grow to £9bn in the next decade.

On average, a typical ‘host’ earns more than £2,000 a year renting out rooms in their home.

From April 2016, hosts can receive up to £7,500 tax free under the government’s Rent a Room scheme.

Humphrey Bowles, founder and CEO of Belong Safe, said: “Potential hosts of the home-sharing market have never had real peace of mind while letting out their property to paying guests. Removing that concern could, and should, release huge potential for the UK market.”

The insurer said it is able to cover 99% of hosts automatically.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week