AirBnB? Going travelling for a few months? Got a holiday home you don’t visit often? There are loads of situations where you may be requiring short term landlord insurance for a let property.
If so that may be the case that you need to review your cover. Many home policies – like Emerald Life’s – will allow certain longer periods of absence for travel or work secondments, and you can find out more by calling us.
At Emerald Life all our 12-month landlord policies are fully refundable when they are no longer used, without any pesky admin fees. That gives you ultimate flexibility rather than buying fixed-term shorter policies, if you don’t know how long you need that simply doesn’t matter. We can cover AirBnB and other short-term lettings, holiday homes and more.
Recent years have shown an explosion in short-term lets, largely driven by the new sharing economy. It seems every week there’s a new app or website that aims to monetise an illiquid asset by sharing it with other people – like your home, car and appliances.
That’s great news for anyone with a second home – which used to be an indulgent expense only occupied for a few months. If you did decide to rent or share it that became a big management commitment.
Now though with platforms like AirBnB bringing tenants to you passively and agents that offer to manage the property for you if you deem it fit, you can unlock a lot of largely passive income.
But you do still need to look after your finances and insuring your short term let can get a bit complicated.
Another reason you may be looking for short term landlord insurance is more traditional short term tenancies where a tenant only needs a short stay. That can be a great way to appeal to more tenants who do not want to commit to a full 12 months – especially if they are just visiting a place for a few months. It can also help you out between tenants while you wait for someone else.
Home Insurance For Short Term Lets
As soon as you are no longer the resident in the property and are taking a fee for someone to stay there, standard home insurance will no longer cover you if something goes wrong.
Home insurance is quite plain and simple that if you are resident in the property you have a big interest in it and so will look after it.
A paying guest on the other hand, no matter how caring they are, does not share the significant financial investment in the property. An insurer will therefore deem them to be higher risk.
Then there are the other risks of holiday lets – multiple tenants coming and going, keys regularly changing hands, more and more people knowing a property isn’t occupied full time.
You also don’t know much about your tenants, whereas a long term tenant with a tenancy agreement is likely to go through references and credit checks.
There are lots of reasons a short term let property can be more at risk of damage and burglary than the home you live in.
Landlord insurance already caters to a lot of those additional risks, but by specifying that you are looking for short term landlord insurance for short term lets you can get the cover that is best for you.
Short Term Landlord Insurance
To get short term landlord insurance, just go through our fast online quote form answering as best you see fit.
If in doubt feel free to call us and ask for help.
Most short term lets will probably fall under holiday and second home – so watch out for questions like if the property is your main residence.
When you get to the question of your type of tenants you can select the most appropriate answer – holiday home with or without AirBnB.
If you only let your holiday home to family then you could select that option instead. Or read more about landlord insurance if renting to family here.
If you have a more traditional short term let of a few months that is not an AirBnB-style holiday let, you can go for the option that most accurately describes your tenant.
Students and unemployed young people are especially likely to be touring the world on short-term tenancies.
These choices mean our system is able to calculate an appropriate price for your short term landlord insurance.
Insurers use a system of ratings to judge risk and thus calculate prices by taking into an account a wide array of factors such as postcode, buildings value and your claims history.
A property being a short term let is just one of those criteria.
For that reason short term landlord insurance doesn’t need to be expensive because the short term let aspect is just a small part of that pricing.