Short answer: if your Johor Bahru condo runs as a homestay, the building's fire policy only covers the structure, not your renovation, furniture or liability when a guest gets hurt. You need your own houseowner/householder policy that is told, in writing, the unit is a short-term rental, with enough public liability. Airbnb's AirCover only covers Airbnb bookings.
Many owners assume "the building is insured" and "Airbnb has AirCover" settles it. Both statements are true. Neither covers everything. Below we go through each layer, then give you the questions to ask your insurance agent.
Disclaimer: this is general information, not insurance or legal advice. Every policy is different; your policy wording and your insurer's written answer are what count.
What does the building's fire insurance actually cover?
Under the Strata Management Act 2013, the joint management body or management corporation of a strata condo insures the building, mainly against fire. That policy covers the building itself: walls, slabs, common property.
It usually does not cover:
- Your own renovation: ceilings, built-ins, upgraded flooring, air-conditioning
- Furniture, appliances, linen and other contents
- Your liability when someone is injured in your unit or a guest's belongings are damaged
- Income lost while the unit can't be rented
So "the building is insured" solves only the bottom layer for a homestay owner.
What kinds of home insurance can an owner buy?
There are four common types in Malaysia. A homestay owner should know what each one does:
| Cover | What it pays for | What a homestay owner should note |
|---|---|---|
| Houseowner / fire | Structure and fixed improvements you added | The building already covers the shell; you mostly insure your renovation |
| Householder / contents | Furniture, appliances, soft furnishings | A fully furnished homestay makes this the most practical layer |
| Loss of rent | Income lost while the unit is unusable after an insured event | Often an add-on; ask for it |
| Public liability | What you are legally liable to pay a third party for injury or property damage | A guest slipping in the bathroom or a water heater fault lands here |
The General Insurance Association of Malaysia (PIAM) has said standard home policies usually carry a public liability limit of around RM50,000, which can be raised for an extra premium. Whether RM50,000 is enough for a unit that hosts several groups of strangers a month is your call. If not, raise the limit or buy a standalone public liability policy.
Does my existing home policy still work when guests stay?
This is where most owners get stuck. Most standard home policies are written for owner-occupied or long-term rented homes, and many carry exclusions around "business" or "commercial" use. Renting by the night can look like a business to an insurer.
What we suggest:
- Find your policy and search for "business", "commercial", "short-term rental" and "paying guests"
- Tell your agent or insurer in writing that the unit runs as a homestay, and ask whether it is covered
- Get an email or an endorsement, not "should be fine" over the phone
The worst outcome of not declaring is not a smaller payout. It is the whole claim being rejected. That is why insurance sits on the "recommended" list in our homestay licence guide for Johor Bahru.
What does Airbnb AirCover cover, and what doesn't it cover?
AirCover for Hosts has two parts, per Airbnb's published figures:
| Part | Limit | What to know |
|---|---|---|
| Host Damage Protection | Up to US$3,000,000 | Airbnb itself says this part is not an insurance policy |
| Host Liability Insurance | Up to US$1,000,000 | Liability if a guest or third party is injured or their property is damaged |
The numbers are large, but summaries of the terms commonly list these as not covered:
- Normal wear and tear: tired mattresses, worn sofas, scuffed walls
- Acts of nature such as floods and storms
- Consumables and normal check-out cleaning
- Cash, jewellery and similar valuables
- Damage that was already there
There are also procedural hurdles. You first request payment from the guest through Airbnb and escalate only if they refuse, and the request generally has to be made within 14 days of the guest's check-out (earlier if the next guest checks in first). Weak evidence, meaning no photos and no receipts, makes it hard to succeed.
Most important: AirCover only covers Airbnb bookings. Guests who came through Booking.com, Agoda or a direct booking in the same month are outside it. Check Airbnb's Help Center for the terms that apply in Malaysia.
What about Booking.com, Agoda and direct bookings?
- Booking.com: mainly lets you collect a damage deposit yourself, or use its damage programme to collect on your behalf. It also describes liability cover for partners, but that is not payment for damage to your unit. Confirm in your extranet what applies to your listing.
- Agoda: we could not find an AirCover-style host damage protection in Agoda's public host material.
- Direct bookings: only the deposit you collect.
So for a unit listed on several channels, the only protection present on every booking is the deposit plus your own insurance.
If a guest is injured in the unit, who is responsible?
The unit is yours and so is the equipment, so liability can often reach the owner: no anti-slip in the shower, a faulty water heater, a loose balcony railing. This is exactly what public liability cover is for.
An Airbnb booking may have AirCover's liability insurance behind it. Every other channel relies on your own public liability. We made the same point in the furniture that breaks first: furniture that injures someone can be the owner's liability.
What does a management company do about insurance, and what doesn't it do?
The parts that don't flatter us, stated plainly:
- We don't buy insurance for owners. Like maintenance fees and assessment, insurance is the owner's own cost (see what an owner actually earns).
- A deposit won't cover a big loss. Our default deposit is RM200. One broken glass tabletop or TV goes past that. The rest is claimed from the platform, claimed from insurance, or absorbed by the owner.
- Damage found late is hard to put on a guest. In our system every damage record must name who pays: owner, customer or insurance. Choosing "customer" requires linking a reservation, and only reservations that checked out in the 7 days before the reference date can be chosen. Damage discovered after that window can only go to the owner or to insurance.
What we do: photos at every turnover, damage records with photos and receipts, platform claims filed inside their deadlines, and items paid by insurance tagged separately so you have a complete record when you claim. We don't promise what a platform will pay. As our deposit deduction article explains, claims are sometimes paid in part and sometimes refused.
One more question worth asking any management company, including us, in writing: does the company hold its own public liability insurance, and what does it cover? Clause 12 of the 12 clauses to check before you sign is about exactly this.
Something happened: what order do I do things in?
- Photograph and video everything before any clean-up: wide shots and close-ups, with timestamps
- Notify management, and ask for an incident report if building facilities are involved
- Make a police report for theft or break-in; most policies require one
- Claim on the platform within its deadline: for Airbnb, generally 14 days after check-out
- Notify your insurer promptly; many policies set a notice period and late notice can be refused, so check yours
- Keep every document: repair quotes, invoices, receipts
Seven questions to ask your insurance agent
| # | Question | The answer you want |
|---|---|---|
| 1 | Is this unit covered when it runs as a short-term rental / homestay? | Written confirmation or an endorsement |
| 2 | Do renovation and furniture need to be declared separately? How is the sum insured set? | Replacement value, not second-hand value |
| 3 | What is the public liability limit, and how high can it go? | Options above RM50,000 |
| 4 | Is deliberate damage by a guest covered? | Often not; know it in advance |
| 5 | Are flood and water leaking into the unit below covered? | Flood is often an add-on |
| 6 | Is there a loss-of-rent add-on? | Income while the unit is down |
| 7 | How many days do I have to notify a claim? | Put it in your incident checklist |
Next step
What you insure, and for how much, is the owner's decision. If your unit is managed by us, when something happens we put together the photos, receipts and timeline you need to claim. To see how our management works, leave a note at /ownerenquiry.