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Airbnb or Hotel: Does Your Choice of Accommodation Affect Your Travel Insurance?

Travel Insurance, Airbnb, Hotel

While travelling is out of the question for now, you’re going to want to be ready for travel once the borders open up again. A major part of your preparation should be travel insurance. Many insurance companies offer travel insurance cover, allowing Singapore residents to enjoy or make the most of their trips. 

Accommodation is one of the most vital things to consider when travelling, and in this case, it is essential to consider how it affects your travel insurance. For example, you should consider whether your travel insurance cover will apply whether you stay in a hotel or an Airbnb. 

Travel Insurance

If you want to travel to Singapore or any other country, it would be wise to first apply for a travel insurance cover. Such a cover will cover any expenses such as loss, health issues or damage that may arise during your stay. As for the accommodation, the insurance will cover you even at your selected accommodation as long as it is legal. You should, therefore put this into consideration before choosing your preferred accommodation.

You should also make sure you carefully read the insurance policy so that you understand and avoid the things that may void your cover. For example, if anything happens during your stay at an illegal Airbnb, then the insurance company will likely refuse to compensate you.

The same case applies to Singapore residents who want to travel to other countries. It is not only important to read the insurance policy but also to read the hotel or Airbnb policies. The location should also be an important factor to consider. 

If you are travelling to a place that has been blacklisted, for example, due to insecurity, then you will be putting yourself at more risk. Such a situation would void your travel insurance regardless of whether your accommodation is a hotel or Airbnb.

Choosing Your Ideal Option

A comparison between Airbnb and hotel accommodation is usually challenging because both options are generally highly competitive and attractive. However, the situation is different in Singapore because Airbnb’s operation model is not legal in Singapore. Private property owners are not allowed to rent out their properties, especially for short periods like a day or a week. 

The limitation tips the scales in favour of hotels if you are looking for accommodation for a couple of days. The good thing is that many hotels offer different price ranges for accommodation. For example, you can get an accommodation rate as low as $30 per night, and the range goes all the way into thousands of dollars per night. Of course, the higher the rate, the more exclusive the hotel and the better the services.

However, if you are travelling out of the country, then the situation becomes different since Airbnb is legal in most countries. If you travel overseas on a budget, then you might want to consider Airbnb accommodation because it is more affordable and it is also an option where there are a limited number of hotels. As far as insurance is concerned, your travel insurance will cover you whether you stay in an Airbnb or a hotel. 

Airbnbs Are Still an Option in Singapore?

Singapore housing laws only allow private property owners to rent out their spaces for a minimum of three months while flats registered with the country’s Housing Development Board (HDB) are not allowed to offer accommodation for less than 6 months. This means that Airbnbs are available in the country but not for less than the stipulated minimums.

It would be wise to check with your insurance company if you want to stay at an Airbnb, especially if you are travelling within Singapore. This will provide clarity on the matter, especially considering the legal implications.

Dennis Lee

Dennis Lee

Financial Services Manager

Dennis Lee’s experience spans over 27 years in the Life Insurance Industry. He began his journey in Pana Harrison back in 2000 and is a competent Financial Services Manager.

Specializing in both Commercial & Individual insurance needs, his clients has been with him for the past 20 years and counting.