Considering South Africa’s rising living costs, more people are renting their homes as a means to boost income. However, although listing a home on Airbnb might seem like a quick and easy way to supplement your income, opening your home to strangers will always come with risks.
Cheerful yellow hello sign and fresh flowers in a clean and bright bedroom
Running a hospitality business requires specialist insurance and one needs to take this into account when deciding to turn your property into an Airbnb.
Let your insurer know you’re an Airbnb host
Your domestic household insurance won’t suffice for Airbnb, as there is a different risk associated to a continuous flow of guests/people coming through your property – this increases the risk of damage and theft and potential liability risk if guests get injured.
You must let your insurer know if you’re renting out a room or the entire house so that you can change your domestic household insurance to hospitality insurance. If you fail to do so, your insurer may decline your hosting-related claims because they weren’t notified about the Airbnb status prior.
Property owners are advised to consult with brokers when listing their homes on Airbnb. This way, necessary measures are taken to mitigate potential risks and ensure that they are adequately covered.
Speak to your broker for more information on hospitality insurance or visit santam.co.za.
Santam is an authorised financial services provider (FSP 3416), a licensed non-life insurer and controlling company for its group companies.
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