Does Suncorp Landlord Insurance cover short-term rentals?

Short-term rentals like AirBnB have grown in popularity over the past few years. Instead of booking a hotel in town, people can now find backyard bastions and bungalows way off the beaten track.

However, this shift in use means you’re basically in the hotel business which may come with greater risk of damage, like from holiday party guests. The good news is that Suncorp Landlord Insurance can offer some cover for short term rentals, though a policy for such a property won’t have all the same inclusions as one would for a traditional rental property with a fixed-term signed rental agreement^#.

What does Suncorp Landlord Insurance cover?

Like Home Insurance for a property you own and live in, Suncorp Landlord Insurance can help cover repair and rebuild costs incurred by a range of insured events. Landlord Insurance also includes cover for incidents that only come up for rented properties, such as loss of rent due to a tenant defaulting.

Be sure to read the PDS and SPDS for details. Note that for events like bushfire, storms, and floods, cover is not provided within the first 72 hours of taking out a new policy*.

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What exclusions apply on a Suncorp Landlord Insurance policy when using the property for short-term rental or holiday letting?

Cover is limited when the property is used for short-term rentals and or holiday letting. The policy does not provide cover for all insured events and provides no cover for loss of rent or income.

There is no cover under the ‘theft or burglary by tenants or their guests’ insured event when the property is used in this way.

In addition there is no cover under the following additional covers:

• loss of rent due to property being unliveable during repairs after an insured event
• loss of rent due to tenants defaulting
• loss of rent due to tenants being unable to or prevented from accessing the property
• legal costs that are incurred to recover unpaid rent, and
• lock replacement.

Please read the PDS and SPDS for further details.

Does Suncorp Home Insurance cover the property when it’s used for short-term rental?

Suncorp Home Insurance includes limited cover when the entire home or unit is rented out under a short-term rental or holiday letting arrangement (including any booked through an online booking platform – e.g. AirBnb or Stayz). In these circumstances there is only cover for loss or damage from insured events and cover for legal liability, subject to policy terms, conditions, and exclusions.

Please note this there is no cover when when you rent the entire home or unit to tenants or paying guests that is not a short-term rental or holiday letting arrangement. A policy exclusion applies.

For full details of the exclusions and limitations please refer to the PDS and SPDS.

You can also check out the visual guide to help understand Suncorp Insurance cover for the home with just a few clicks.

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Consequences of home-sharing without the right cover

Not all landlord and home insurance policies include cover for when the entire property is rented out under a short-term rental arrangements. That means risking property damage without possible cover, and missing out on potential legal liability cover.

Be sure to know what is and isn’t covered by your policy and your obligations under the policy by reading the PDS, SPDS and your certificate of insurance. That way, you can be more informed about what your options are when it comes to leasing or renting out your property.

Read more:

• Does my home insurance cover fire damage?
• The impacts of water damage at home
• Should you consider Landlord Insurance?

* We do not insure you for bushfire, storm, storm surge, flood or tsunami in the first 72 hours of your policy. Very limited exceptions apply.
^# A ‘rental agreement’ is defined in the PDS. Limits, exclusions and conditions apply – refer to the PDS and SPDS for details.

Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Consider the Product Disclosure Statement before making a decision about this insurance. The Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. The information is intended to be of general nature only. Subject to any rights you may have under any law (including the Australian Consumer Law), we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.