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The cost of a home insurance policy for a property rented out via Airbnb starts from around £210, including building and contents cover for a property with a £150,000 rebuild value. Prices can vary dramatically based on a number of factors, such as rebuild value, type of property, security measures and more.
Properties that are more expensive, older and with more bedrooms are, naturally, more expensive to insure, but when you’re letting out your property to a number of different guests per year it’s important to make sure you’re properly covered. If you have further questions about protecting your home, you should also check out our guides to landlord insurance and airbnb insurance.
QuoteZone can help connect you with insurers and brokers specialising in insuring Airbnb’s—just fill out a quote form and they’ll take care of the rest.
How much does Airbnb landlord insurance cost?
Based on a rebuild value of £200,000 (the average cost to rebuild a house in the UK) you can expect to pay around £220 annually for your Airbnb landlord insurance. This is nearly 30% more expensive than the cost for a non-Airbnb property with a £200,000 rebuild cost.
This shouldn’t come as a surprise. Having different guests staying at your home (especially with the fairly simple background checks Airbnb conducts on potential tenants) is always going to be a riskier proposition for insurers than having stable occupants for the entire year.
It’s also possible that the increase in price isn’t as much as you were expecting—Airbnb’s Host Guarantee/Protection policies are designed to cover you if a guest does cause damage within your home during an Airbnb stay, so many of the most common issues a homeowner might face while renting out their property via Airbnb should go to Airbnb first (and not your insurer, although reports of Airbnb’s willingness to cover hosts online are mixed).
We’ve run some numbers to find starting costs for sample Airbnb properties. You may find quotes that are higher or lower for your property, but these figures can be a rough guide indicating how much people typically pay for Airbnb insurance in the UK.
|Landlord Airbnb Insurance Cost Calculations||Sample Annual Premium|
|Individual flat in purpose-built block||£205|
|Terraced/End terrace house||£217|
|Individual flat in converted building||£218|
How does rebuild cost impact Airbnb landlord insurance?
One of the most important factors impacting the cost of your Airbnb landlord insurance is the rebuild cost of the property. The reasoning behind this is fairly simple—more expensive properties pose a larger risk (and higher potential costs) to an insurance company if you need to make a claim.
We gathered quotes for a 3 bedroom terraced property to show how rebuild cost impacts the amount you’ll pay annually.
|Rebuild Cost for a 3 bedroom terraced property||Sample Annual Premium|
What Impacts the Cost of Airbnb Landlord Insurance?
When signing up for a policy, your insurer will ask you a wide range of questions to allow them to assess the risk of your policy (and ultimately how much they charge you for it. While factors like property value and security measures naturally play a huge part in how likely you are to need to make a claim, there are a number of other factors at play that it’s worth being aware of.
- Rebuild cost
- Year built
- Annual occupancy rate
- Materials used to build the property (walls, roofing)
- Type of occupancy (is the property used for business?)
- Type of building (e.g., purpose built, listed property, etc.)
- Type of tenants (e.g., employed, student, lodgers, short-term rent etc.)
- Planned building/renovation work
How to save money on Airbnb insurance
As with traditional landlord insurance, there are a number of ways to save. The best way is always to try and gather as many quotes as possible. A comparison engine like QuoteZone can be a good way to obtain quotes from as many sources as possible without the hassle of re-entering your details every time.
- Pay annually instead of monthly: avoiding potentially expensive interest charges
- Hunt for discounts: time-specific offers, offers through aggregators/comparison sites or savings from purchasing multiple policies from one source
- Avoid optional extras: while they can be useful, opting out of extras like legal expenses cover can lower your costs
- Pay a higher excess: while it’ll cost you more if you need to make a claim, it will reduce the monthly/annual cost of your policy
- Increased security: better locks and anti-theft features like burglar alarms will decrease the risk levels of your property
There are a few additional coverages available with your Airbnb landlord cover. Some insurers will offer these as standard, some might charge you additionally and some may not offer the cover at all. As always, have a think about what you do and don’t need before choosing your provider.
We've also got a guide to the average cost of non-Airbnb landlord insurance costs which might provide a useful comparison between the price differences caused by hosting with Airbnb (compared to annual tenants, for example).
Home emergency cover for Airbnb landlords starts from around £5 per month (£59.99 annually). It’ll cover things like vermin, roof damages and any issues with power supply.
All providers are different—some may charge extra to cover your heating or cover any hotel accommodation costs you accrue while being unable to live in the property.
Legal expenses cover for Airbnb landlords starts from around £4 per month (£45-50 annually). Every cover is different, but many will provide access to 24/7 telephone/email lines in the event you need to defend yourself in court from an issue related to your property—say if a tenant causes property damage and you want to recover the costs.
Keep in mind that Airbnb’s Host Protection should cover you for this (whether they’ll pay out or not is a different matter, however).