Does your Airbnb property need short-term rental insurance?

Imagine this: your Airbnb guest accidentally knocks over a lamp, your investment property’s polished floorboards get scratched by a suitcase, or a guest slips on your deck after a summer storm.

Now picture finding out your regular home insurance won’t cover any of it. Scary, right?

In Australia’s booming short-term rental market, standard insurance policies sometimes leave hosts high and dry. Whether you’re renting out your Byron Bay beach house or a chic Melbourne apartment, having the right cover isn’t just smart—it’s absolutely essential.

Let’s dive into why hosts need specialised insurance, answer your biggest questions, and show you how to protect your property (and your wallet).

Why every short-term rental host needs proper insurance

Your home and contents insurance might cover a burst pipe or a break-in but the moment you start hosting paying guests, most policies won’t protect you.

Why? Because insurers see short-term rentals as a business activity and standard cover excludes commercial use.

Without the right policy, you could be liable for:

• ‍Property damage (broken appliances, stained carpets, scratched floors)‍
• Theft (vanishing electronics, artwork, or even linen)\
• ‍Personal liability claims (if a guest injures themselves on your property)

Just one bad stay could leave you thousands out of pocket, or worse, facing legal action. Don’t assume you’re covered. Let’s break it down.

Short-term rental insurance FAQs

1. Isn't my home and contents insurance enough?

No. Most standard policies won’t cover damage caused by paying guests. Even if you only rent occasionally, insurers often treat short-term stays as a business, leaving you unprotected.

2. What f I already have landlord insurance?

Landlord insurance is better, but it’s not perfect for short-term rentals. Some policies:

• Only cover stays longer than three months (not ideal for Airbnb)
• Exclude theft of high-value items (like TVs or sound systems)
• May require a formal lease agreement to process claims

Always check your PDS—many landlords get caught out thinking they’re covered when they’re not.

3. Doesn’t Airbnb’s insurance protect me?

Airbnb offers a host guarantee up to $1M for property damage and host protection insurance up to $1M liability, but they’re not reliable as standalone cover. Why?

• They only apply to Airbnb bookings (not Stayz, Booking.com, etc.)
• Claims can be denied for vague reasons (e.g., "wear and tear")
• They don’t cover theft of your personal belongings

Never rely on Airbnb alone. A dedicated policy is a must.

4. What makes short-term rental insurance different?

Specialist policies are designed for hosts, offering:

• ‍No minimum stay requirements (cover for 1-night bookings)‍
• Higher contents coverage (for breakables, electronics, furniture)‍
• Stronger liability protection (some cover up to $20M)

5. What are the best insurance options in Australia?

Three top-rated policies for Aussie hosts include:

1. IAG ShareCover – Great for part-time hosts
2. BJS Holiday Rentals Insurance – Strong theft and damage coverage
3. EBM RentCover ShortTerm – Best for full-time rentals

Compare policies to find your best fit and don’t risk going uninsured.

Stress-free hosting with MadeComfy

Why stress over guest complaints, cleaning schedules, and insurance claims when you could earn more with zero hassle?

MadeComfy takes the headaches out of short-term rentals, offering:

• ‍Expert listing optimisation - maximise bookings and nightly rates‍
• 24/7 guest management - no more wee-hour messages about lost keys!‍
• Professional cleaning and maintenance - so you never lift a finger

Best of all? Our hosts earn up to 40% more than traditional long-term rentals.

Insurance isn’t just a safety net—it’s your ticket to hosting with peace of mind. Get covered, then let MadeComfy handle the rest.

CONTACT US to get a free rental assessment and see what your property could earn!