Short Stay FAQs

by | Oct 6, 2018

These are questions that we are asked on a daily basis. Let’s cut to the chase and clear some of these up. You should check back often as we will add to these regularly.

Q “Is all short stay insurance the same”?

No, definitely not. Short Stay is not a class of insurance in its own right: the insurance class is normally Landlord Insurance, and Short Stay may be a permitted use under the terms of that policy. The cost of the policy coverage will vary, depending on the cover required. Many Landlord policies do not allow short stay, so always check with your broker.

Q “My friend’s short stay insurance was a lot cheaper than what you have quoted me. Why the big difference?”

Here are some reasons that could account for this difference in quoted premium:

  • Your friend has an apartment that only requires Contents cover. You have a free-standing house that requires Building & Contents cover
  • Your friend’s 1 bedroom house has a building sum insured of $150,000. You have a 9 bedroom mansion with a Building replacement sum insured of $1.5m.
  • Your friend has a Contents sum insured of $10,000. You have asked for Contents cover for $150,000.
  • Your friend’s property is in a low risk-rated area. Your property is in Far North Queensland/a documented flood/fire zone/an area with a high crime rate
  • Your friend has no claims history. You have made multiple claims in the last 3 years/you have had a large claim in the last 12 months
  • You have asked for Loss of Rent/Accidental Damage/Theft or other optional cover. Your friend has a basic defined events cover with no extensions.

What is the lesson here? Each person’s insurance needs are unique and you shouldn’t assume that your friend’s cover is right for your property. It’s like taking someone else’s pharmacy prescription! Always consult a broker to find the insurance that’s right for your property.

Q “What’s the difference between Rent Default & Loss of Rent?”

  • Loss of Rent – Is usually triggered by an insured Damage event. It is often an optional extra so you may or may not be covered for this.
    It applies when destruction, loss or damage occurs and the Building or sections of the Buildings and/or Contents are unable to be lived in after the destruction, loss or damage has occurred, or unable to be leased or rented when the property is used for Short Term Rental after the destruction, loss or damage has occurred.
  • Rent Default – This is relevant to Long Term tenancies. Where the Tenant fails to pay Rent in accordance with a Rental Agreement and/or Periodic Tenancy Agreement. It may occur if the tenant absconds.

Q “How much should I insure my property for?”

We are often asked what a “typical” sum insured is. There is no such thing. That’s a question only you can answer, and in fact it would be a serious compliance breach for any broker to suggest a sum insured to you. Determining sums insured can be confusing, so here are some tools to help.


Typical building replacement costs are provided by Reed Business Information Pty Ltd (A.B.N. 80 132 719 861) trading as Cordell Information (‘Cordell’) and typical building contents replacement costs are provided by Sum Insured Pty Ltd (A.B.N. 55 947 630 521 (‘SI’) trading as Home Contents. Whilst every care is taken to ensure the accuracy of the information as a guide for costing, no responsibility is accepted by either Cordell, SI, Steadfast or the Steadfast Broker for its accuracy. Please check with an Architect, Builder, Quantity Surveyor, Valuer or other suitably qualified professional for an accurate estimate. Neither Steadfast nor the Steadfast Broker takes any responsibility for the costs provided by Cordell or SI nor any liability for the accuracy of or reliance upon or use of, the costs. To the fullest extent permitted by law, Cordell, SI, Steadfast and the Steadfast Broker expressly disclaim all warranties, express or implied, including, but not limited to, the implied warranty of fitness for a particular purpose. Cordell, SI, Steadfast and the Steadfast Broker do not warrant or make any representations regarding the use or the results of the use of the information provided in terms of its correctness, accuracy, reliability, or otherwise.

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