The popularity of short-term rental platforms such as Airbnb, LekkeSlaap, and Booking.com has created exciting opportunities for homeowners to generate additional income from their properties. Whether it’s renting out a spare room, a cottage, a holiday home, or an entire residence, more South Africans are turning their homes into income-generating assets.
But there is an important question every property owner should ask:
Is your insurance policy keeping up with the way your property is being used?
When the Risk Changes
Many homeowners are unaware that once a property is used to accommodate paying guests, the insurance risk can change significantly.
A standard household insurance policy is designed to insure private residential use. However, when guests regularly stay on the property in exchange for payment, the exposure may no longer fit within a traditional personal lines policy.
From an insurance perspective, the property may begin to resemble a hospitality or commercial risk.
Potential Exposures to Consider
Short-term accommodation businesses can introduce additional risks, including:
✔ Liability claims from guests injured on the property
✔ Theft or malicious damage caused by guests
✔ Increased public access to the property
✔ Damage to hospitality-related contents and equipment
✔ Loss of rental income following an insured event
✔ Business interruption and operational disruptions
Without the appropriate cover in place, property owners could face unexpected gaps in their insurance protection.
Does This Apply to You?
You may need to review your insurance arrangements if you:
- Advertise accommodation on Airbnb, LekkeSlaap, Booking.com, or similar platforms.
- Rent out guest rooms, cottages, or holiday accommodation.
- Operate a bed and breakfast establishment.
- Manage a guesthouse or small hospitality business.
- Generate regular income from short-term paying guests.
Why Specialist Cover Matters
Hospitality and short-term accommodation businesses face unique risks that often require specialist insurance solutions.
Appropriate cover can provide protection for:
- Buildings and contents
- Guest liability
- Loss of income
- Accidental damage
- Hospitality-related risks
- Business interruption
Having the correct cover in place provides peace of mind for both property owners and their guests.
Review Your Cover Before You Need It
Many claims disputes arise when the actual use of the property differs from what was originally disclosed to the insurer.
Don’t wait until a claim occurs to discover that your holiday rental has effectively become a business.
If your property is used to accommodate paying guests, now is the ideal time to review your insurance arrangements and ensure your cover accurately reflects your activities.
At Altara, we understand the unique risks associated with short-term accommodation and hospitality businesses. We can assist you in finding the right insurance solution to protect both your property and your income.
Contact our team today to discuss your requirements and ensure your cover is keeping pace with your property’s changing role.