Airbnb and home insurance in Canada

Do you need home insurance to rent on Airbnb?

You may have home insurance, but you need to check whether it covers short-term rentals like Airbnb. By registering your home as an income property, you have modified the terms of your contract with your home insurance company. You’ll need to inform your insurer, who may choose to keep this information on file or cancel your contract. If your contract is terminated, you won’t be covered in case of need, even if it’s not Airbnb-related.

Before renting, get home insurance quotes from several different companies to make sure they offer this coverage. Airbnb automatically covers everyone, although there are some limits to its coverage.

Airbnb provides insurance protection: AirCover for Hosts. Nevertheless, you must take every precaution to protect your property. Before posting your ad on a rental platform, check with your insurer to see if becoming a host on Airbnb will affect your home insurance.

Why do you need short-term rental insurance?

Airbnb offers two levels of insurance coverage with AirCover for Hosts:

• $1M liability insurance
• $3M damage protection

These protections are, of course, in addition to reservation and identity checks, as well as security assistance.

But for the purposes of this article, we’re interested in insurance, such as third-party liability and damage insurance. So, here’s more information on the two insurance coverages…

Liability Insurance

Airbnb’s liability insurance pays up to $1 million in public liability for injuries or property damage caused by third parties such as guests, condo management and neighbors.

While a million dollars is a lot of money, it may not be enough to cover medical bills if someone falls because of problems on the property. Host protection insurance does not cover the loss of income suffered by the injured party if he or she is unable to work.

Damage Protection

Airbnb’s damage protection covers up to $3 million in property damage caused by visitors, including accidents, theft and other losses. It also offers specialized protection for :

• Valuables such as works of art
• Cars and boats
• Pet Damage
• Income loss (if you have to cancel Airbnb bookings due to guest damage)
• Deep cleaning

However, try to avoid the risk of theft by removing these items from the property. What’s more, the AirCover for Hosts guarantee (Airbnb) does not replace the homeowner’s home insurance. Talk to your insurance broker and understand the terms of your current insurance coverage. You don’t want any nasty surprises in the event of a claim. If you need supplementary insurance, be careful not to pay twice for unnecessary coverage.

How can you take out additional insurance to protect your home on Airbnb?

There are only a few insurance companies in Canada that offer insurance for short-term rentals of your home on platforms like Airbnb. However, this protection is generally an add-on to your existing coverage and comes at an additional cost. In some cases, it may not be offered by your insurer, or it may be refused. As a result, you may have to change insurers to obtain this coverage.

Start by calling your current insurance company to declare your rental activities and obtain insurance advice. Make sure you understand what is and isn’t covered by your insurance policy. If it doesn’t offer this coverage, contact an insurance broker like YouSet, which has access to several insurance companies.

Finally, compare quotes yourself using our home insurance quote comparison tool.

Bottom Line

In short, short-term rentals on platforms like Airbnb allow owners to generate additional income. But, before you rent out your home on Airbnb, check your current home insurance to make sure your home will be protected against any risks.

If your current insurer doesn’t offer coverage for rentals on platforms like Airbnb, contact an insurance broker or use our tool to compare home insurance quotes online.

Frequently asked questions about Airbnb and home insurance