Renting out your dream guest house or B&B could turn into a nightmare.
Thanks to our country’s internationally-renowned abundant natural beauty and attractions, guesthouses and B&B’s are pretty much guaranteed to enjoy optimum occupancy levels during the peak holiday periods. And, as a property owner, you probably have risk-minimising measures in place, such as regular homeowner’s insurance, including personal liability cover.Yet it’s crucial to know that operating a commercial venture changes your risk profile and exclusions apply when you rent out your property or have paying guests residing in it. Your public liability insurance requirements will also differ considerably from the liability cover in your homeowner’s policy.
How to keep living the dream
Consult your broker for the best tailor-made option, which includes cover for your and your guests’ belongings, liability cover and protection against business interruption losses, whether you have a guesthouse, a B&B (or Airbnb) or rent out rooms.
Also, if you’re a guesthouse or hospitality association member, check if it has specialised cover options. For example, Airbnb offers host protection insurance against liability up to a certain amount.
Check your property for any potential safety risks, however big or small, take out additional cover for accidental damage to household contents and add additional liability cover. Disclaimers are also a great way to minimise liability claims, so use them as notices and include them in your rental agreements.