What’s this all about?
Online property rental services such as Airbnb have helped millions find alternatives to hotels when they go on holiday. But with the platforms increasingly being used for longer-term lets, traditional landlords are facing more and more competition.
As the popularity of Airbnb has soared in recent years, it has caused problems for landlords, whose properties can be sub-let on the site by people looking to make money from the property that they’re renting from a private landlord.
With additional tenants unknown to the landlord, and more and more people coming and going through the property as a result, the risk of serious damage to the property rises significantly.
One of the main concerns of this is that it can lead to landlords insurance becoming invalid, although, of course, the precise terms of individual policies will vary.
There are other insurance concerns too, however. This is because the terms of the agreements made on sites like Airbnb can end up breaching the conditions set out in insurance policies and mortgage contracts.
In 2015, the Government announced its intention to legislate against the inclusion of clauses in private fixed-term tenancy agreements that prohibit tenants from subletting their rented accommodation.
But with the change in leadership that saw Theresa May replace David Cameron as Prime Minister, these plans have lost their original focus, and no date has yet been set for a consultation on the proposals.
As the rules and regulations surrounding the use of sites such as Airbnb become more and more uncertain, it’s increasingly important for landlords to check the conditions of their contracts.
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We are Personal and Commercial Insurance Brokers based in Newquay covering the whole of Cornwall and the UK.
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