Insurers have warned 140,000 property owners planning short-term rentals this summer that their home and contents insurance was unlikely to cover “potentially catastrophic” losses.
In addition, most insurers regarded short-stay holiday rentals, on platforms such as Airbnb, Stayz, Homeaway, Flipkey and booking.com, as a commercial use of property, which means owners needed to pay for specialist cover.
“Otherwise damage or a public liability claim could cost homeowners hundreds of thousands of dollars,” said Insurance Council spokeswoman Lisa Kable.
ATO data matching action
Landlords also faced extra attention from tax authorities, which are analysing detailed information of 190,000 clients provided by rental platforms.
Tax Office officials said the first round of letters will be sent to house and apartment owners during the next few weeks asking them to review their return and the income they earned.