Research conducted by the insurer has revealed that one in two Airbnb or Stayz hosts incorrectly believed, or were unsure as to the extent their existing home insurance policy covered them in the sharing economy.

IAG has recently introduced a new insurance protection policy called ShareCover to cater for the surge of Aussie homeowners renting their homes to short term guests through Airbnb and Stayz.

'Opening your home to paying guests is a great way to earn some extra cash over the holiday season, but there is a misconception that standard home and contents insurance will cover damage or liability if the unexpected happens,' said Ron Arnold, Group General Manager Venturing for IAG.

'While home insurance will offer protection for things like storm damage and theft, hosts could be left to foot the bill if someone gets hurt or something gets damaged while there is a paying guest in their home.

'There has been a huge rise in the popularity of home sharing over the past 12 months and we saw a need to offer better protection to local hosts renting out their properties to short-term visitors.'

ShareCover will protect homeowners from loss resulting from certain events or accidents caused by a guest during their stay, with cover starting from as little as $4 a night.

'Accidents can happen even with the most respectful of guests. ShareCover is the first of its kind to cover the specific risks associated with home sharing and offer hosts complete peace of mind,' said Mr Arnold.

Under ShareCover, hosts will be covered for the following events linked to the guests:

• Theft or attempted theft;
• Malicious or accidental damage;
• Damage to and loss of portable and valuable contents such as jewellery;
• Strata property damage;
• Personal liability in the event the guest sues you for damages;
• Identity theft;
• Loss of rental income and temporary accommodation.

Learn more about how ShareCover can protect your home when paying guests come to stay.

IAG - Insurance Australia Group Limited issued this content on 2015-12-23 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2015-12-23 06:37:22 UTC

Original Document: http://www.iag.com.au/short-stay-hosts-urged-smarten-cover-silly-season