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Exposures of the new “Sharing Economy” – are you at risk?

Oct 25, 2016
Are you having an open home?
Do you have a cleaner or gardener?
Are you renovating your house?
Are you going overseas for more than 60/90 days?
Has the tenant moved out of your investment property and the premises has been vacant for more than 90 days?
Is your property listed on AirBNB?

If you’ve said “yes” to any of the above, you might be underinsured OR your insurer may completely decline a claim if this information is not disclosed to them.

It is timely to discuss these issues as policies can contain exclusions for certain activities, and you need to be aware.

One circumstance we come across often is “Open Homes”.

Some insurers may have exclusions in their PDS’ which include the following:

  1. No cover for accidental damage – i.e. someone breaking an expensive vase or dropping something on the couch or carpet etc.
  2. No cover for theft (unless it is by forcible entry) during Open Home times.
  3. Ensure your Pool area is closed / SUPERVISED and fenced / locked properly during these times.

Another issue we are coming across is the rise of AirBNB.

Standard Home & Contents policies may not cover you in the event of a claim.  This situation may be considered “commercial use”, which is excluded under policies.

Landlord Insurance policies do not provide cover either, as these are typically designed for long-term arrangements, and where there is a residential tenancy agreement in place.

Hosts do have some protection in place from AirBNB, however the cover has limitations, more exclusions and lack of transparency. One of the main issues surrounding AirBNB activities, is the Liability aspect.   Especially surrounding guests either injuring themselves, or being killed on your property.

There is huge personal exposure now that we are entering the “sharing economy” world.

Claims could be denied if events like these aren’t disclosed to your insurer/adviser.

If you are ever in doubt, contact your AustBrokers Comsure adviser today for advice surrounding this and any other activity on 1800 122 194.

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