Home sharing and short-term rental websites have become very popular as an easy way to make some extra money. But did you know that, as soon as someone starts paying to stay in your place, it could impact your home insurance? So, before you post your listing, read up on how you’re covered (and how you’re not).
How short-term renting affects your home insurance
While that extra income is great, you should be prepared for the risks that come with inviting unknown guests to stay in your home – risks like theft, vandalism and liability, all things that are usually covered by your home policy. As a result, some insurers won’t cover you for this type of activity or may even cancel your policy. Others may have restrictions on coverage or require a policy specifically for short-term renting.
Heads up condo owners: Home sharing or short-term rentals could be in violation of your condo board’s policies – so be sure to check first!
Take note renters: This is considered subletting. Review your lease agreement and the rules for renting in your province, to make sure it’s allowed before handing over your keys.