Airbnb- Household insurance??

Discovery Insure have released underwriting guidelines for insuring your residence used as a bnb, including Airbnb.

So, there you are … feeling great… you are letting out your property through Airbnb… and have visions of bringing in a lot of extra money.

First thing, if in Cape Town… note the Council has guidelines for letting out a flat for Bnb’s… they don’t allow it … so research a little before doing this.

Then…. What about insurance?

Anything could happen… a guest getting hurt from a slippery floor, things being stolen,… and on and on.

You don’t want to be running a loss from the get go… so what do you do?




These insurance guidelines from Discovery Insure’s risk management team will help when you are considering this:

Discovery Insure’s risk management team has set out guidelines for insuring a private residence used as a B&B or rented out through Airbnb.

According to the underwriting guidelines:

  • Clients will have cover if:

    • Three or fewer bedrooms of their private residence (main house) are rented out as a B&B or Airbnb, and
    • The client lives in the private residence on a permanent basis.
  • We will cover their guests’ household goods and personal items for losses occurring at their building, as long as the guests’ items are not insured elsewhere. The maximum amount of cover is in the Benefit Limit Annexure.

What is not covered:

  • Theft or attempted theft from the building unless there is forcible and violent entry or exit.

  • Theft of laundry from communal washing lines.

  • Accidental loss or damage caused to any property belonging to a paying guest.

  • Items that are covered under any other insurance policy.

  • Liability directly or indirectly due to:

    • Their employment, business or profession

    • Exclusions according to the Plan Guide.

Obviously, these are just some guidelines from Discovery Insure. There are specialist Bnb insurers out there (which I expect you will be looking at, especially if you are using a Bnb as your primary business).

This blog post is meant to get you thinking if you are letting out your property as a Bnb, or through Airbnb

Hope this helps.

Airbnb- Household insurance?? was last modified: October 10th, 2017 by Kenny Williamson

Leave a Comment