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Protect your holiday rental roll

By Sarah Barton, Terri Scheer Distribution Channel Manager

Terri Scheer hopes that you have been able to enjoy this holiday season during what has been an irregular start to the year.

We understand from our ongoing discussions with property managers that short stay bookings have been strong this summer as Australians holiday close to home.

There are expectations this trend may extend into autumn, Easter and school holidays at the end of term one.

This creates good opportunities for property managers to support savvy holiday home owners to grow or create an additional source of income via short stay rentals.

For the holiday home owner, any increase in bookings carries with it increased risk. This includes theft, tenant damage and legal liability issues arising from injuries sustained at the property by guests.

The risks can be significant when you consider that a holiday home may be rented out a number of times a year.

If you have holiday homes on your rent roll, here are some key points to be aware of:

The most common insurance claims for holiday rentals

Water damage, tenant damage and loss of rent are the top three reasons for claims made on our Terri Scheer Short Stay Policy.

Water damage is the most common insurance claim and includes burst water pipes under sinks, leaking hot water systems and dishwashers.

It’s important landlords put measures in place to safeguard their holidays homes and protect them from potential risks.

Facilitating insurance claims

Most holiday makers do the right thing, but even the most careful guests can unintentionally damage property.

Theft from a holiday home which may be fully or partly furnished is also another potential risk.

If an insurance claim arises from either of these scenarios, the landlord will need to provide evidence of which guest was responsible for the damage or theft.

This can be a challenge if the holiday home has been rented a number of times in short succession.

As a property manager, a key benefit you can provide to your landlords is having appropriate identification procedures in place.

Terri Scheer supporting property managers

At Terri Scheer, we actively encourage owners of holiday home rentals to use the services of a property manager.

We highlight the important role you play in protecting their investment including regular property inspections, responding to maintenance requests and assisting with claims if there is an insurable event at the property.

Benefits of holiday rental insurance

Holiday home owners should look for a landlord insurance policy that specifically covers short-term tenancies with clauses for tenant damage, theft, loss of rent and legal liability.

Holiday rental insurance can provide peace of mind that a landlord won’t be left out of pocket if their holiday home is damaged by a guest or robbed over the holidays.

We recently asked a holiday home owner to share their thoughts on holiday rental insurance with us:

“We rent our holiday home to create additional income that helps to offset our investment. It’s in an ideal location close to the beach where our family loves to relax and holiday, and we enjoy being able to offer the same opportunity to other families. 

“As a short-term rental that is fully-furnished and attracts frequent guests, property damage is a risk and accidents can happen. We have short stay insurance to protect the property and its contents from damage as well as from a legal liability point of view. 

“Owning a holiday home is a significant investment and insurance gives us peace of mind we are covered if something goes wrong. 

“There is also property management in place to look after enquiries and bookings, arrange cleaning and undertake inspections in between each stay. 

“Our aim is to attract repeat guests as they will be more vested in caring for our holiday home. This makes it important to keep on top of maintenance and we have done additional work in the lead-up to the busy summer period.” 

For further information, call 1800 804 016.


Insurance issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as Terri Scheer. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 016 or visit our website at www.terrischeer.com.au for a copy. The Target Market Determination is also available.

The information is intended to be of a general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries. This article has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it.

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