Before you Airbnb your home or loan your car, check your insurance!

Stephen Grootes speaks to Ernest North, co-founder of insurance platform Naked, about the hidden insurance risks South Africans face when renting out homes or cars during the holiday season.

Listen to the interview in the audio player below.

As South Africans look for inventive ways to stretch their holiday budgets, many are turning to the sharing economy. From renting out homes on Airbnb and swapping holiday houses, these money-saving strategies are becoming increasingly common.

But while they can help cut costs, or even generate extra income, many consumers are overlooking a crucial detail: whether their insurance will still pay out if something goes wrong.

According to Ernest North, co-founder of digital insurance platform Naked, misunderstandings around insurance cover are one of the biggest risks facing holidaymakers this festive season.

Holiday side hustles and sharing-economy solutions can make financial sense, but only if they don’t expose you to uninsured losses.

North cautions policy holders to read the fine print, which could potentially ruin the festive cheer.

"The recommendation is, if you are going to be allowing friends or family to stay in your house, rent-free, then it doesn't impact your insurance policy at all. Just ask them to look after your place as well as you would."

- Ernest North, co-founder, Naked Insurance

"If you're renting out your house on a short-term basis, then you have to let your insurer know."

- Ernest North, co-founder, Naked Insurance

"When someone is paying to use your car, then it becomes a commercial policy essentially, and your standard personalised car insurance policy won't cover them."

- Ernest North, co-founder, Naked Insurance

Scroll to the top of the article to listen to the full interview.