Airbnb, Home Sharing and Short Term Rental

Short term rental and home share networks such as Airbnb, HomeAway and Flipkey provide property owners, interested in renting their dwelling, an online community marketplace that connects them with travellers looking for accommodations to rent. These networks offer access to worldwide accommodations in family homes, condos, summer homes and cabins where the property owner may or may not be in the dwelling during the stay.  Guests reportedly experience a home-away-from-home feel that they may not get while checked into a hotel.

As these networks increase in popularity, the number of Canadian property owners renting out their homes, or part of their homes, temporarily, is also growing.  Millennials are reportedly using the extra income to help make their mortgage payments, while the over-55 demographic are renting out their homes to supplement fixed incomes.

While earning extra cash is attractive, there are several factors that should be considered before entering into a contract to rent out your home.  One such factor is insurance protection. Many Homeowners’ insurance policies exclude short term occupancy and may not cover things such as:

• liability of the property owner arising out of the short-term rental

• loss or damage to buildings and personal property

• intentional acts, criminal acts, or failure to act by a guest

• loss or damage to a guest’s property

• fair rental value (loss of rental income)

A recent survey of homeowners across Canada who rent their homes on a short-term basis showed a staggering 51% were unaware that their homeowner’s insurance policy wouldn’t cover losses or damage that could occur as a result of the short-term rental. 

If you are currently renting out your dwelling or are considering doing so, talk to Team Insurance Brokers about your insurance coverage.   Our insurance advisors will review your current coverage and recommend coverage tailored to protect you, your family and your investment.