Airbnb and short-stay insurance in Australia

1. Your normal policy probably doesn't cover short stays

The Insurance Council of Australia has warned that most insurers regard short-term letting as commercial use, because the risk of damage goes up. Standard home and contents insurance can exclude short-term rentals, and standard landlord insurance is generally designed for leases of three months or more. Where landlord policies do allow short stays, it is often only for renting a room, not the whole home.

If you list a property on Airbnb without telling your insurer, you risk a refused claim at the worst possible time: after a fire, a flood from a burst pipe, or a guest injury.

2. The five covers a short-stay property needs

Cover	What it protects	Watch for
Building	The structure, against fire, storm, flood, escape of water	For apartments the strata policy covers the building, but check its terms on short-stay lots. For houses you need a building policy that accepts paying guests.
Contents	Furniture, appliances, linen, kitchenware, TVs, fittings you own	Insure the full cost to replace a fully furnished property. Strata cover doesn't include your contents.
Public liability	Claims if a guest or visitor is injured, or their belongings are damaged	Compulsory for every stay in NSW. Check the limit, often $20 million.
Guest damage	Accidental or malicious damage by guests	Excesses, and what counts as "wear and tear"
Loss of income	Lost booking income if an insured event makes the property unlettable	Usually doesn't cover guest cancellations or quiet periods

A specialist short-stay or holiday rental landlord policy usually bundles these together. Compare policies cover by cover, not on price alone.

3. Apartments: what strata does and doesn't cover

Strata insurance covers the building and common property, and the building's own public liability. It generally doesn't cover your furniture and belongings, or your legal liability for incidents inside your lot. Those need your own policy.

Some strata insurers also exclude or limit cover where units are used for short-term or holiday letting, while others don't treat it differently. Ask your strata manager for the policy and check its terms. In NSW, the short-stay Code of Conduct requires hosts to tell the owners corporation the lot is used for short-term rental. It's good practice in Queensland too.

4. What AirCover does and doesn't do

Every Airbnb booking comes with AirCover for Hosts. It has two parts: Host damage protection (up to US$3 million) and Host liability insurance (up to US$1 million). They are not the same thing:

• Only the liability part is insurance, underwritten by third-party insurers. Airbnb itself says Host damage protection isn't insurance.
• It applies to Airbnb bookings only. Stays booked through Booking.com, Stayz or direct aren't covered.
• Damage generally has to be reported within 14 days of checkout, or before the next guest checks in, whichever is sooner.
• It excludes normal wear and tear, acts of nature such as storms and floods, and normal checkout cleaning.
• It isn't building insurance and doesn't cover loss of income from fire, flood or burst pipes.

Treat AirCover as a useful extra layer for Airbnb bookings, not as your insurance.

5. What the law requires

NSW: the short-term rental Code of Conduct requires hosts to hold insurance covering their liability for injury or death of third parties at the premises, valid for each stay. For bookings on other platforms or direct, you need your own policy to meet this.

Queensland: there is no state law requiring short-stay insurance, but your lender, your body corporate and common sense all do. In NSW and Queensland, interconnected smoke alarms are a legal requirement (in Queensland, for every home by 1 January 2027). Insurers also expect safety basics to be in place when you claim.

6. Who manages the property can affect your cover

Several specialist short-stay policies are designed for professionally managed properties. Terri Scheer's Short Stay Policy, for example, requires the property to be managed by a licensed real estate agent or on-site manager. Other insurers, such as EBM RentCover's short-term policy, can cover self-managed properties.

The risk is the in-between case: the owner tells the insurer the property is professionally managed, but it is really run by an unlicensed co-host. That may not meet the policy terms. In Queensland and NSW, anyone paid to manage a short stay for an owner needs a real estate licence anyway (see our guide to choosing a manager).

7. Switching between short, mid and long-term letting

Short-stay and long-term policies are designed for different risks. If you move a property from Airbnb to a furnished mid-term stay or a standard lease, or back again, tell your insurer and make sure the policy type matches how the property is let. Some short-stay policies can cover a switch to longer leasing. Others need to be replaced. Mid-term stays (one to six months) can sit awkwardly between the two, so ask specifically.

8. How to make sure a claim gets paid

• Disclose everything up front: short-stay use, the platforms you list on, who manages the property and any strata by-laws.
• Keep a photo inventory of every room and item, updated when you replace things.
• Inspect after every stay and photograph any damage straight away, with the booking reference.
• Report quickly: within 14 days for AirCover, and as soon as possible for your insurer.
• Keep receipts for furniture, repairs and maintenance.
• Maintain the property. Gradual leaks, mould and wear are usually excluded, so fix small problems early.

10-point insurance checklist

1. The policy is written for short-term or holiday letting, not just long-term tenancies.
2. It covers whole-home letting, not only renting a room.
3. It covers bookings from every platform you use (Airbnb, Booking.com, Stayz, direct).
4. Contents are insured for the full replacement cost of the furnished property.
5. Public liability is included, and in NSW applies to every stay.
6. Guest damage, accidental and malicious, is covered, and you know the excess.
7. Loss of income after an insured event is included.
8. You meet the eligibility terms, including any requirement for a licensed managing agent.
9. You have told the insurer how the property is used and who manages it.
10. You have checked the strata policy and told the strata manager the lot is used for short stays.

Common questions

Does home or landlord insurance cover Airbnb?

Usually not for letting the whole home. Most insurers treat short-term letting as commercial use. Standard landlord policies are generally designed for leases of three months or more, and where short stays are allowed it is often only for renting a room. You usually need a specialist short-stay policy.

Is Airbnb AirCover enough insurance?

No. AirCover includes up to US$1 million host liability insurance and up to US$3 million Host damage protection, but the damage protection isn't insurance. It only applies to Airbnb bookings, and it excludes wear and tear and acts of nature. It also isn't building cover. Use it as an extra layer alongside your own short-stay policy.

Do I legally need insurance for a short-term rental in NSW?

Yes. The NSW short-term rental Code of Conduct requires hosts to hold insurance covering liability for injury or death of third parties at the premises, valid for each stay.

Does strata insurance cover my Airbnb apartment?

Only partly. Strata insurance covers the building and common property. It generally doesn't cover your contents or your liability for incidents inside your lot, and some strata policies limit cover for units used for short stays. Check the policy with your strata manager and take out your own short-stay contents and liability cover.

Can using an unlicensed co-host affect my insurance?

It can. Some specialist short-stay policies require the property to be managed by a licensed real estate agent or on-site manager. If your property is actually run by an unlicensed co-host, you may not meet those terms and a claim could be refused. Check your policy's definition of a managing agent.

Related: How to choose an Airbnb manager · Brisbane short-stay rules · Sydney short-stay rules. This guide is general information, not insurance advice. Read the product disclosure statement and speak to an insurer or broker about your own property.

Last checked: 9 November 2026. This page is general information, not legal or tax advice. Rules change, so confirm the details for your own property with the council, your body corporate or strata manager, and your accountant.