This is a question we get asked time and time again. Do I need additional insurance while the booking platforms I’m listed on have built-in protections? If you don’t want to read the rest of the article I can answer the question in two simple sentences. Your asset is worth too much to place all your faith in non-insurance products. Specialised short-term rental protection costs a few hundred dollars per year on average, is fully tax-deductible, and provides the definitive financial protection required to sleep easy at night.

The reality is that receiving a satisfactory outcome from these services is becoming increasingly difficult, see our article on the resolution centre, and that these programs are not actual insurance products and will never fully protect your property. Booking platforms provide a helpful starting point for dispute resolution, but landlord insurance remains a non-negotiable operational component for any serious investor. A note that we cover all minor maintenance including annual carpet cleaning for landlords under our management here at Bedspoke. Larger issues we will deal with the booking platform or insurance assessors on your behalf.

The operational reality of platform protection programs in 2026
Online travel agencies update their terms regularly, meaning the coverage you think you have today might look completely different tomorrow. As of July 2026, the specific policies of major booking channels confirm that their built-in programs contain severe structural limitations.

• Airbnb currently promotes up to 3 million dollars in host damage protection alongside 1 million dollars in liability insurance. While this sounds comprehensive, the damage protection element is a corporate guarantee funded by Airbnb, not an insurance policy that you hold. Recent operational updates introduce much stricter evidence standards, tight timelines for submitting photographic proof, and clear exclusions for everyday consumables. If a guest stains linens or claims an issue occurred due to existing wear and tear, Airbnb often denies the payout.
• Stayz operates on an accidental damage protection framework where guests purchase specific coverage packages or owners hold a traditional security deposit. To secure a payout for guest-caused incidents, the property owner must lodge a claim within a rigid 14-day window following guest checkout. This process demands exhaustive photographic evidence, written repair quotes, and rapid administrative processing. If you fail to discover the damage or miss the deadline, your right to recovery instantly expires.
• Booking.com provides up to 1 million dollars in partner liability insurance across its global platform to cover third-party bodily injury claims. However, the corporate policy document states directly that the program does not provide coverage for damage or loss to your personal property, building, or contents. If a guest floods your kitchen or destroys furniture, Booking.com provides no automatic property damage fund. You must pursue the guest directly through court actions or platform mediation.

To give you an understanding of the work required, at time of writing we have 3 full time team members dealing with the OTAs listed above on our clients behalf. We have built systems to ensure accurate photos are timestamped and stored between bookings and we have systems in place to ensure deadlines are met and no claims are overlooked. Believe it or not this part of short-term letting is much easier at scale. We have the team, the resources and the systems. I feel for single property owners who must take time out of their day to fight with the OTAs.

Critical structural gaps that leave you exposed
True insurance protects a property against unpredictable forces, whereas platform guarantees only focus on active guest behavior (and even then you have to fight for your payout). This distinction leaves several major operational hazards completely unaddressed.

• Non-booking related issues and incidents between guests
  Platform guarantees apply only during an active, paid reservation and only under very specific situations. If a water pipe bursts, an electrical fire starts, or a major storm damages the roof when the property is vacant between bookings, you have zero recourse through Airbnb or Stayz. A specialised short-term rental policy covers the building and contents 24 hours a day, regardless of occupancy status. This alone should be enough for you to want cover.
• Strata regulations and East Coast localisation
  Properties in urban Melbourne apartments or Gold Coast high-rises are subject to strict body corporate and strata building rules. Most residential strata building policies explicitly exclude short-term rental operations, meaning the building policy covers common areas but leaves your individual lot contents and public liability exposed. Specialised landlord insurance for short term letting bridges this gap, protecting your fixtures, internal structures, and liability within the building framework.
• Furthermore, local councils across Brisbane and the Sunshine Coast enforce specific rules around short-term accommodation compliance. If an unverified guest causes a major liability incident that violates a local council ordinance, platform protections can be completely voided due to non-compliance clauses.

The financial strategy of dedicated landlord insurance

• Short-term rental insurance typically costs a few hundred dollars per year and in most cases is no more expensive than its long-term equivalent. Because it is a direct operational cost of running an accommodation business in Australia, the entire premium is fully tax-deductible against your rental income. This minor annual expense removes thousands of dollars of potential out-of-pocket exposure.
• You should never lodge insurance claims for minor issues, as frequent small claims increase your premium and policy excess costs. Professional management structures solve this issue without involving insurers. To ensure minor issues do not compound into massive headaches, Bedspoke covers minor maintenance items, such as broken glassware, replacing toilet seats, and towel rails, at no cost to the landlord. We also arrange professional carpet cleaning once per year at no cost. This operational model keeps the property in pristine condition without constant out-of-pocket costs or insurance claims.

Conclusion
Relying solely on platform guarantees exposes your property to significant operational risk. A dedicated short-term rental insurance policy costs very little compared to the extensive asset protection and financial peace of mind it offers. Just do it. It absolutely not worth being unprotected. If you need advice on the right insurer or would like a best-in-class management company to handle this headache and all the rest on your behalf please get in touch.