By Richard Godman
Manager Technical Underwriting, Consumer Insurance
1 June 2023
If you’re keen to maximise the value of your asset by turning your home or bach into an income-earner, it's important to understand how it will affect your insurance.
But you’ll need to make sure that you’re meeting your normal policy conditions, including letting us know if you are not living in the home. Accidental damage caused by paying guests is also subject to an extra excess, on top of your standard excess, and there is no cover for malicious, intentional or deliberate damage by paying guests.
If you're letting out a bach or investment property that you don't normally live in, you may need different cover. Check out this blog on how the sharing economy affects insurance for more information.
For example, Airbnb does offer a Host Guarantee to provide protection for damages (in New Zealand the guarantee is for up to NZ$1.3 million), but this doesn’t replace insurance. You can check the Airbnb website here for details of the Host Guarantee.
The information in this article has been compiled from various sources and is intended to be factual information only. Full details of policy terms and conditions are available from Vero Insurance New Zealand Limited or your financial adviser. For advice on product suitability, please contact your financial adviser. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice. Vero Insurance New Zealand and its related companies does/do not accept any responsibility or liability in connection with your use of or reliance on this article.