Can You Rent Your House Out? Yes, But Don’t Forget The Deposit Insurance

One way to make quick cash from your house is to rent it out during the school holidays – ideal if you have a home in Cornwall, the Lake District, Scotland’s Highlands or in a scenic coastal resort. But if you do find guests via AirbnB, are you covered on your house insurance? Nope, is the answer. But there is a solution;

Guardhog, the pay-per-stay home-sharing insurance specialist has come to the rescue of the burgeoning peer-to-peer accommodation sector by launching deposit cover in time for the peak summer period.

From £2 per stay, hosts can buy a £1,000 deposit for the stay reducing the hassle for those renting out their homes by removing the need for a chunky up-front payment from short-stay guests. In a world where crypto-currencies are on the rise this is a neat 21st Century technology and blockchain driven alternative to the current outdated deposit-holding system.

Making money from your home is a ‘commercial activity’ not normally covered by home insurance. But GUARDHOG has provided Host Cover for over 500,000 nights and paid out hundreds of thousands of pounds to homeowners wishing to protect themselves from malicious or accidental damage. Now, as GUARDHOG expands their offering, the insurance challenger has listened to its customers who said that managing a deposit was causing real headaches – before, during and after they’d had guests to stay.

Until now, resolving red wine spills on upholstery, coffee rings on antiques or smashed crockery has been fraught with potential arguments. Exasperated hosts often find guests sheepishly ‘hid’ the evidence of mishaps before they check out, as they don’t want to risk losing their deposit.

As a result, the provider which works with about 300 sharing economy partners including Airbnb, Home Exchange, and TrustedHousesitters – believes that the new product can only make the entire process more efficient and transparent for both parties.

Will Parry, COO at Altido a London based prop-tech platform says ‘Taking a meaningful deposit from a guest is important but hard. The regulations around handling a traditional deposit are complicated, involve payment processing fees and guests can be put off by forking out a lump sum which dwarves the cost of their stay per night, while resolving host / guest disagreements quickly gets messy. This new approach from GUARDHOG has completely revolutionised how Altido approaches taking deposits for the benefit of us and our users.’

Humphrey Bowles, co-founder of GUARDHOG say, ‘We’re determined to help hosts be in control, take bookings efficiently and for guests to feel they can easily put up their hands up to fess up when an accident has happened. We believe this new approach to deposits will help speed things up on both sides as well as allow a much more open, transparent and hassle-free transaction for all involved.’

About InsuranceEdgeEditor (2036 Articles)
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