A complete guide to insurance for Airbnb and short-term rental hosts in Australia. Learn why standard home insurance may leave you exposed, what AirCover actually provides, and how to properly protect your property and yourself as a host.
Terri Scheer is Australia's leading specialist landlord insurance provider and offers dedicated cover for short-term rental hosts. Their policies address the specific risks Airbnb and holiday rental operators face that standard home insurance does not cover. Get an estimate below.
Most home and contents policies in Australia exclude or restrict cover when your property is used commercially.
Standard home insurance in Australia is designed for owner-occupied or long-term tenanted properties. When you list your home on Airbnb, Stayz or any short-term rental platform, you are effectively operating a commercial activity from your property. Most standard policies contain exclusion clauses for business or commercial use.
Common issues with standard home insurance and short-term rentals include:
The Insurance Council of Australia (ICA) has noted the growing importance of adequate cover for the sharing economy. Always check your specific policy wording and talk to your insurer before listing on any platform. For general guidance, visit ASIC's MoneySmart.
Key risk: If you make a claim while hosting an Airbnb guest without having disclosed this to your insurer, your claim may be declined entirely. Under the Insurance Contracts Act 1984, policyholders have a duty of disclosure. Undisclosed short-term rental activity could void your entire policy, not just the specific claim.
AirCover is included automatically for Airbnb hosts, but it is not a substitute for proper insurance.
Covers damage to your property and belongings caused by guests during an Airbnb stay. Includes furnishings, valuables, and some fixed items.
Covers third-party claims for bodily injury or property damage during an Airbnb stay.
AirCover is a guarantee programme, not a regulated insurance product under Australian law. There are significant gaps every host should understand.
Important: AirCover only applies to bookings made through Airbnb. If you also list on Stayz, Booking.com, or take direct bookings, you have no AirCover protection for those guests. You can review AirCover's full terms on Airbnb's help centre.
Purpose-built policies that address the specific risks of hosting paying guests.
A standard landlord insurance policy with an endorsement permitting short-term rental use. Available from most major Australian insurers and specialist providers.
Your existing home insurance with short-term rental activity disclosed and endorsed. Works well if you host only occasionally from your own home.
Specialist policy for holiday homes and investment properties that are primarily used for short-term letting. Covers periods when the property is unoccupied between bookings.
Providers that offer policies suitable for Airbnb and short-term rental properties in Australia.
Terri Scheer is Australia's leading specialist landlord insurance provider. They offer dedicated policies for short-term rental hosts covering building damage, contents, loss of rental income and public liability. Their expertise in investment property insurance makes them a natural fit for Airbnb hosts.
AAMI is one of Australia's most established insurance brands. They offer landlord insurance that can accommodate short-term rental properties. Strong claims support with a well-known brand behind the cover.
CGU is a major Australian insurer offering landlord and home insurance products. Discuss your short-term rental plans when requesting a quote to ensure your policy covers hosting activity. Good option for bundling multiple property covers.
BizCover provides business insurance solutions and is a strong option for commercial hosts operating multiple properties or running short-term rentals as a business. Their platform compares policies from multiple insurers.
Flip Insurance offers a pay-per-booking insurance model specifically designed for short-term rental hosts. You only pay for cover on the nights you have guests, which can suit occasional hosts who do not rent year-round.
Why public liability insurance is essential for anyone hosting paying guests in Australia.
As an Airbnb host, you carry a duty of care for the safety of guests on your property. If a guest is injured, trips on a loose paver, slips on a wet surface, or suffers harm from a faulty appliance, you could face a significant liability claim. Public liability insurance covers legal costs and compensation if a guest or third party is injured or their property is damaged at your rental property.
Key liability considerations for Australian short-term rental hosts:
Disclaimer: This information is general in nature and does not constitute legal or financial advice. Consult a qualified professional for advice on your specific situation.
Protecting your furnishings, appliances, and property from guest damage.
| Coverage Area | Standard Home Policy | AirCover | Specialist Rental Policy |
|---|---|---|---|
| Guest accidental damage | ✗ Usually excluded | ✓ Covered | ✓ Covered |
| Guest malicious damage | ✗ Excluded | ✓ Covered | ✓ Covered |
| Theft by guests | ✗ Excluded | Limited | ✓ Covered |
| Appliance breakdown | ✓ Covered | ✗ Not covered | ✓ Covered |
| Natural disaster / bushfire | ✓ Covered | ✗ Not covered | ✓ Covered |
| Fire and smoke damage | ✓ Covered | Guest-caused only | ✓ Covered |
| Loss of rental income | ✗ Not applicable | ✗ Not covered | ✓ Covered |
| Normal wear and tear | ✗ Excluded | ✗ Excluded | ✗ Excluded |
Disclaimer: Coverage details are indicative and vary between providers and policies. Always read the full Product Disclosure Statement (PDS) for exact terms and conditions.
What the law requires of Airbnb and short-term rental operators in Australia.
Regulations vary significantly by state. Check your local council and state government rules before hosting.
Victoria has introduced short-stay regulations that limit rentals to 90 days per year in some areas. Owners corporations can set rules about short-term letting in apartment buildings.
NSW allows up to 180 days per year of short-term rental accommodation in Greater Sydney when the host is not present. There is no cap when the host is present during the stay.
Queensland rules vary by local council area. Other states including South Australia, Western Australia, and Tasmania each have their own approaches to short-term rental regulation.
Understanding these factors helps you find the right balance of cover and cost.
Higher-value properties cost more to insure. Building construction type (timber vs brick), age, and condition all affect premiums. Holiday homes in coastal or bushfire-prone areas may attract higher rates.
Properties in higher-risk areas for bushfire, flooding, cyclone or coastal erosion face higher premiums. Northern Queensland, bushfire-prone parts of Victoria and NSW, and flood-affected areas attract higher rates.
Full-time short-term rental properties attract higher premiums than occasional hosts. Some insurers distinguish between part-time hosting and year-round commercial rental operations.
Properties accommodating more guests present more risk. Larger homes sleeping eight or more people may face higher premiums than a single-room listing in your own home.
A higher excess reduces premiums. The sum insured for building and contents, and the liability limit you choose, directly impact the annual cost.
Swimming pools, spas, trampolines, elevated decks and other high-risk features increase liability risk and therefore premiums. Some insurers may require specific safety measures such as compliant pool fencing.
Indicative annual premiums for different hosting scenarios in Australia.
Disclaimer: These figures are indicative estimates based on publicly available information as at April 2026. Actual premiums depend on property value, location, hosting frequency, cover level, and provider. Always obtain an estimate or quote directly from the insurer for accurate pricing.
Practical steps to reduce risk and protect your investment.
Always tell your insurer about short-term rental activity before you start hosting. Non-disclosure can void your entire policy, leaving you completely unprotected.
Take detailed photos and video of your property and all contents before each guest arrives. This provides clear evidence for any damage claims and establishes pre-arrival condition.
Use platform verification features, read reviews from other hosts, and consider requiring a minimum guest rating. Most platforms offer identity verification and review systems.
Set a damage deposit or security bond through your booking platform. Airbnb allows hosts to set a security deposit amount, though it functions as a damage claim process rather than a held bond.
Smart locks eliminate key management issues. External security cameras (disclosed in your listing as required by Australian privacy law) deter problematic behaviour. Never place cameras inside the property.
Clear instructions for appliances, heating, cooling, pool or spa, and emergency contacts reduce accidental damage and liability risk. Include evacuation plans and first aid kit location.
Store personal valuables, important documents, and irreplaceable items in a locked room or off-site. Only leave items you can afford to replace in guest-accessible areas.
Ensure smoke alarms, fire extinguishers, pool fencing, balustrades, and outdoor lighting are all maintained and compliant with your state's requirements. Regular maintenance checks reduce both risk and liability.
Establish and communicate rules about parties, smoking, pets, noise, and maximum occupancy. These help manage expectations and provide grounds for action if rules are broken.
Maintain records of guest names, booking dates, income, and any damage or incidents. Good records support insurance claims and tax obligations with the ATO.
Compare insurance providers above to find the right cover for your Airbnb or short-term rental property. Speak to insurers directly about your hosting plans.