Home insurance for short-term rentals

In today’s sharing economy, peer-to-peer rentals are making their name as cheaper (and trendier) alternatives to traditional hotels. But if you’re considering entering the market as a homeowner, there are a few things you should know about home insurance for short-term rentals.

Do you have to tell your home insurance company when you rent out your home?

Yes. Any time your situation changes, it’s important to talk to your licensed home insurance broker to make sure you’re covered in an emergency.

Here are 3 examples of home-sharing situations your broker and insurer need to know about, no matter what.

1. Listing your home on a home-sharing website or app. You’ve heard that listing your apartment (or even your spare room) on a home-sharing site could be a great way to make extra cash. You travel a lot for work, so you list your home on a popular peer-to-peer rental app so others can stay while you’re away.
   
   
2. Listing your home in an online classified ad. Your kids are moving out of the province for school and their bedrooms are sitting empty. You plan to rent out their rooms to local students on a buy and sell site.
   
   
3. Participating in a house swap. You trade houses with your Banff-dwelling friends and tackle the mountains for the winter break. Your friends agree to feed and walk Fido if you water their plants, and both families can explore new places without paying a cent for accommodation. It’s a win-win.

These are a few common home-sharing scenarios that might affect your coverage. Any time you invite someone to stay in your home (if they’re paying to stay or not), it’s important to get in touch with your broker. Even short-term changes such as renting out your apartment for a couple weekends could affect your eligibility for coverage or the outcome of a claim. It’s always worth having a quick conversation with your broker beforehand to make sure you’re covered.

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Do home-sharing apps and sites include insurance coverage?

Some online home-sharing networks offer insurance coverage for physical damage caused to your home. But it’s important to note that this built-in coverage is limited and often excludes liability or theft claims. If you plan to rent out your home through a service that includes insurance, ask your broker how your own policy will protect you if the built-in coverage falls short.

If you’re planning to rent out your home (or part of your home) through an online classified site that isn’t specific to home-sharing, read the terms and conditions carefully before publishing your listing. Many sites provide no insurance coverage, so you’ll have to rely entirely on your own insurance company and may need to buy added coverage.

Home-sharing networks may offer insurance for damage caused to your home but this built-in coverage comes with limits and often excludes liability or theft claims.

Always tell your insurance broker when you’re considering renting out your home

Don’t compromise your coverage. No matter what kind of home-sharing arrangement you’re considering, remember to contact your licensed broker beforehand. Your broker can connect with your insurance company to find out exactly how your own policy will respond, to your plan. They’ll always be there for advice when you need it.