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).
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.
Online classified services most often provide no insurance coverage (check their terms and conditions carefully). You’ll have to rely entirely on your home policy and may need additional coverage.
Some online home-sharing networks may offer insurance coverage for physical damage caused to your home, but remember, it comes with limits. Also, coverage from these networks often excludes liability or theft claims. With this in mind, you’ll still need to consider if and how your own home policy will protect you where this coverage falls short.
No matter what, be sure to let your insurer know that you’ll be renting out your space to make sure you have the right coverage in place – and, most importantly, that you’re not voiding your current coverage.
Looking for home insurance that covers short-term renting?