What Coverage Do You Have When Renting out Your Place Short-Term?

short term rentals

With the rise of Airbnb, more and more Canadians are become part-time hoteliers. Indeed, renting out your place short-term is a good way to make some extra money when away from home. However, doing so comes with a number of risks. It’s important that you understand what coverage you have as a short-term landlord and that you adjust your home insurance policy as needed.

Airbnb’s coverage

When you rent your place out through Airbnb, you’re automatically covered by two types of insurance provided by the company, their Host Insurance and Host Guarantee.

 

Airbnb Host Insurance covers you against injury claims. It gives you $1.3 million of liability coverage, which protects you in the event that a guest becomes injured while staying at your home.

 

The Host Guarantee protects you against property damage and thefts of up to $1.3 million. However, this coverage isn’t comprehensive. Certain items, including vehicles, artwork, antiques, jewelry and collectibles, have only limited protections.

 

Moreover, in the event of a theft, even if the stolen item is covered by the Host Guarantee policy, there’s no guarantee that you’ll be reimbursed. You have to be able to prove that the theft took place, and you have to provide substantial documentation to verify your ownership as well as the value of any missing property. Very often, it isn’t easy to satisfy these conditions.

 

To sum up, Airbnb’s insurance programs provide good liability protection but the coverage for theft and damage is pretty scant.

 

Your homeowner’s coverage

The standard home insurance policy doesn’t cover short-term rental hosting. If an Airbnb guest damages your property or steals from you, you’ll be left to pay out pocket if Airbnb won’t reimburse you. Unless you seek out a homeowner’s policy that specifically protects you as a short-term landlord.

 

Not all insurance companies provide such policies, but a number of them do. If you’re planning to rent your place out through Airbnb or another short-term rental service like VRBO, it’s worth speaking with an insurance broker. An insurance broker will be able to give you a comprehensive rundown of what you’re covered for in your homeowner’s policy and can help you shop around for coverage that provides ample protection.

 

Customized home insurance in Alberta

At TSG Insurance, we custom-build your home insurance policy to meet your needs. Because we can access multiple insurance agencies, we’re able to provide you with various options and get you the best rates. For a free quote, or to learn more about our insurance services in Calgary, Edmonton and beyond, contact us today.