What is Holiday Home & Short Stay Property Insurance?
Benefits
Expenses and circumstances covered under the policy.
Description
Coverage
Loss of Rent
52 weeks, maximum $50,000
Loss of rent is subject to an underinsurance clause. If your annual rent exceeds the maximum $ limits,
this policy may not be suitable. Please reach out to our friendly team to find out more.
Loss of Rent by Defined Event
52 weeks, maximum $50,000
Loss of Rent following Tenant Damage
52 weeks, maximum $50,000
Loss of Rent following Murder / Suicide
52 weeks, maximum $50,000
Untenantable due to Death of a Tenant
12 weeks, maximum $50,000
Failure to Vacate
26 weeks, maximum $50,000
Loss, Damage & Theft
Up to $60,000
Accidental loss or Damage
$60,000
Deliberate Damage by Tenants
$60,000
Theft by Tenants
$60,000
Damage by Tenants Pets
$5,000
This includes the cost of repairs for damage due to clawing, chewing and pet urine.
Oil Leakage from Heater
$60,000
Tax Audit
$5,000
Contents
Up to $60,000
Contents in Open Air
$5,000 (Theft). All other Claims 10% CSI
Contents in Storage units / case
$2,000
Locks & Keys
$1,000
Garbage Removal
$500
Electric Motor Burnout
Motor replacement up to 15 years
Excess Waiver for Total Loss
Excess shown on your schedule
Legal Liability Cover
$20,000,000
Legal liabilities can arise unexpectedly, which is why our policy offers up to $20 million in coverage to protect you against injury or property damage claims. If a tenant or visitor is injured on your property, this coverage helps with legal defence costs and any compensation that may be required.
Beyond personal injuries, we also cover damages caused by tenants or their guests, along with legal expenses of up to $7,500 if a tenant dispute escalates to court. This ensures that you won’t have to bear the financial burden of legal proceedings on your own.
Excess
The amount you must pay in order to accept or process a claim.
Description
Coverage
Loss of Rent
Nil excess
Contents
$250
Loss, Damage & Theft
Up to $250 per claim
Deliberate Damage by Tenants
Nil excess
Accidental Damage by 3rd Party other than your tenant
Additional $250 per claim
Accidental Damage by Tenant including Damage by Pets
Additional $250 per claim
Theft
Additional $250 per claim
Electric Motor Burnout
Additional $300 per claim
Earthquake, tsunami or volcanic eruption
Additional $5,000 per claim
Premium
The amount paid for an insurance policy, typically on a monthly or annual basis. Premiums will vary depending on coverage inclusions, limits and risk factors.
Description
Coverage
For up to $1,250 weekly rent
Premium by State*
$350 - 487 / year
*Prices subject to change. Conditions limits and exclusions apply. Please read our Policy Disclosure Statements (PDS) for more information.
ACT
$404 / year
NSW
$487 / year
QLD (4000-4669)
$404 / year
SA
$366 / year
TAS
$350 / year
VIC
$382 / year
WA (6000-6646)
$368 / year
Frequently Asked
Questions
What is Holiday Home & Short Stay Rental Insurance?
With the short stay economy booming in Australia, it’s important to make sure your holiday home doesn’t cause you headaches! Hosts who offer their properties on short-term holiday rental platforms are most likely not protected for any damage caused by their short-term tenants under their home and contents insurance, posing a major risk for an otherwise appealing opportunity.
That is where Holiday Home & Short Stay Property Insurance comes in! It covers the rental income an investment property earns, as well as legal liability, deliberate and accidental damage, pet damage and theft of the property contents.
While some short-term holiday rental platforms offer limited coverage to protect hosts from liability claims or property damage, it’s crucial to read the terms of their coverage carefully to fully understand the scope of protection they provide.
For example, they are unlikely to provide you with protection against ongoing loss of income whilst your property can not be occupied as a result of damage caused by an insurable event, which is where Holiday Home & Short Stay Property Insurance becomes a real lifesaver.
Why do I need insurance for my holiday rental property?
- Insurance for your holiday rental property is essential to protect your investment from potential risks and financial losses
- It covers unexpected events that can cause damage or disrupt your rental income
- Having this insurance provides peace of mind, ensuring you are prepared for any incidents that may occur while renting out your property to guests
What does Holiday Home & Short Stay Property Insurance cover?
- Holiday insurance covers the rental income that your property earns, legal liability, deliberate and accidental damage, pet damage and theft of the property contents (carpets, blinds, underlays, light fittings and any other household items / furniture owned by you for your personal use and the tenants use).
- Our Holiday Property Insurance policy offers broad and comprehensive protection for a full range of defined events and unexpected circumstances, from motor burnout to the death of a tenant. Other specific protections include $60,000 for oil leakage from heaters, and $2,000 for contents in storage units or cases
- The policy also includes an excess waiver for total loss, applicable as shown on the policy schedule. This insurance is ideal for properties let out on Airbnb and Stayz (Excluding those let out by the room)
Does Holiday Home & Short Stay Property Insurance cover short-term rentals?
Yes, Holiday Holiday Home & Short Stay Property Insurance covers short-term rentals.
At Pip, we offer short-term Holiday Home & Short Stay Rental Insurance policies for investors who offer their holiday homes to travellers on online homestay platforms.
What Holiday Home & Short Stay Property Insurance options are available?
Pip offers tailored, comprehensive rental insurance to ensure your holiday home is covered in a range of situations, from property damage to theft, liability and loss of rental income. We also offer building and contents insurance, liability cover and protection against accidental damage. Having this level of cover in your back pocket ensures your holiday rental is protected from life’s unforeseen disasters, providing peace of mind and security while renting out your property.
How much does Holiday Home & Short Stay Property Insurance cost?
- Several factors influence the cost of Holiday Home & Short Stay Property Insurance , such as the property’s location, size and construction type
- The level of coverage and policy options, such as additional protections, may also affect the price of your premium.
- Other factors that may determine your premium include any security features installed on the property and potentially your claims history.
How is Holiday Home & Short Stay Rental Insurance different from regular rental insurance?
- Holiday Home & Short Stay Property Insurance differs from regular rental insurance by covering short-term rentals that are tenanted by holiday makers
- It includes protections for frequent guest turnover, potential property damage, theft and liability specific to short-term stays
- Regular Landlord Insurance focuses on cover for long term, residential rental properties that are rented under a formal lease agreement
- In essence, Home & Short Stay Property Insurance provides more specific coverage for the unique risks associated with short-term rentals
What is the difference between landlord’s insurance & holiday property rental insurance?
- Pip’s Holiday Home & Short Stay Property Insurance is ideal for property owners who rent out their homes to holiday makers or short term lets (for less than 3 months). Whether you own a beachfront villa, mountain cabin or city apartment, this insurance provides comprehensive coverage tailored to the unique risks of short-term rentals
- Landlord insurance on the other hand is for longer term tenants (more than three months and under a lease agreement)
Are guests’ belongings covered under Holiday Home & Short Stay Property Insurance?
No, guests’ belongings are typically not covered under Holiday Home & Short Stay Property Insurance. It is the responsibility of guests to have their own travel insurance to protect their personal items during their stay.
Can Holiday Home & Short Stay Property Insurance cancellations and lost bookings?
No, Holiday Home & Short Stay Property Insurance from Pip does not cover cancellations and lost bookings. However, we do cover loss of rent across a range of events, such as prevention of access to the property, tenant damage or failure to vacate.
How do I file a claim on my Holiday Home & Short Stay Property Insurance policy?
Lodge a claim online with our claim form. Once the form is submitted, you may be required to provide additional documents via email at claims@pipinsurance.com.au. Feel free to give us a call at 1300 307 072 if you need any support with lodging your claim.