Airbnb home insurance in Canada – what you need to know
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Ratehub Staff
This article was published on April 19, 2023 and was updated on June 20, 2025.
What started as an idea of renting an air mattress for people clamouring to attend massive conferences in cities with sold-out hotels, Airbnb has become a worldwide phenomenon.
If you’re looking to make extra money by turning your house into an Airbnb listing, it’s important to know the details of your home insurance. Creating an Airbnb turns your home into a business property. This means you need to manage the property: create the listing, set the price, take photos, clean up, pay taxes, and manage insurance.
You need to protect your most significant investment from any risks that could cost you thousands. Airbnb has insurance coverage for hosts, but you do not want to take chances with your biggest asset. It pays to be informed.
Key takeaways on Airbnb home insurance in Canada
- If you're planning on listing your property for short-term rental, you'll need to let your current insurance provider know. This can potentially void your contract, as not all insurance companies offer Airbnb insurance.
- Airbnb automatically provides hosts with some form of protection, but there are many gaps in that coverage that you could be responsible for. Damage protection is capped at $3 million while liability insurance is capped at $1 million.
- If you're looking to get additional coverage for your Airbnb property, it's important to shop the market to find the best rate possible. Popular insurers that provide this specialized coverage in Canada include Aviva, April, and Square One.
Do I need home insurance for my Airbnb in Canada?
Yes, you do need insurance for your Airbnb. While you may have home insurance, do you know if it covers home-sharing services like Airbnb or Vacation Rentals by Owner (VRBO)?
By creating an income property, you’ve changed the terms of the contract with your home insurance provider. So speak to them about your Airbnb plans; they may make a note of it on file, or they could tell you it voids your contract. A contract that has been voided means you have no coverage if you need it, even if it’s unrelated to Airbnb.
Before you rent out your property, it’s essential to gather home insurance quotes from a few providers to make sure they offer this protection. Airbnb covers hosts automatically, but there are limits to their coverage. If you need access to more money than Airbnb can provide, it’s nice to know you can turn to your provider for the excess.
What home insurance does Airbnb provide?
Airbnb offers a product called AirCover for hosts, which automatically provides some insurance coverage every time you rent out your property on Airbnb.
AirCover for hosts includes $3 million USD in damage protection which covers the cost of damage caused to the property by Airbnb guests, including pet damage, deep cleaning, and replacing lost or damaged art and valuables. If you lose income as a result of the damage, Aircover will help out with that as well.
Airbnb’s included coverage also provides $1 million USD in third-party liability insurance, which covers you in case something goes wrong while your property is rented out. This includes if a guest were to be injured while on your property or if their belongings get damaged or stolen.
Why do I need extra home insurance if Airbnb provides protection?
Your home insurance policy is intended to protect you while you’re living in your home by covering the building, its contents, and third-party liability coverage. When you rent out the house on Airbnb, the change in use affects the coverage you need and the level of risk the insurance company is taking. While Airbnb provides some protection, there are gaps in the coverage you’ll need to make up for.
Let’s say a fire started in the dryer while a guest was doing laundry, destroying the appliance and causing smoke damage throughout the house. Who would pay to repair the damage?
Airbnb’s coverage only extends to damage caused by guests during their stay. While it was the guest who used the dryer, Airbnb could easily argue they didn’t cause the fire; your faulty equipment caused it.
Your insurance company, meanwhile, could argue they shouldn’t pay because the property was being used commercially. The fire didn’t start while you were living in the home; it started while your customer was paying rent to be there. Had they known you were using it for short-term rentals, they would have calculated the risk – and your premiums – accordingly.
Without adequate coverage, you would have to pay out of pocket for the repairs. And as Airbnb’s income loss coverage wouldn’t apply either, you would have to find a way to continue paying the mortgage, taxes, and condo fees without any rental income.
If the guest were to sue you over the incident, Airbnb’s third-party liability insurance would likely cover you for up to $1 million. But without commercial liability insurance, you would be responsible for any additional amount.
Looking for Airbnb insurance in Canada?
In less than five minutes, you can view multiple home insurance quotes from Canada's top providers – comprehensive coverage doesn't need to come at an unaffordable rate.
Where can I get additional insurance for my Airbnb?
In Canada, a few select insurance companies provide home-sharing insurance. You may have to switch providers entirely to access these services as they are add-ons to existing coverages. Compare short-term rental property insurance quotes from the providers below, and make sure you understand what the policy provides and what it doesn’t cover.
Which insurance companies insure Airbnb in Canada?
Aviva home-sharing insurance
Aviva offers short-term rental insurance that can be purchased as an add-on to a regular home insurance policy or as standalone coverage. The endorsement covers damage to buildings and personal property, guest actions including criminal behaviour, up to $1,500 in coverage for your guest's property, and income loss.
April short-term rentals insurance
April is an innovative insurance company that is always launching new and intriguing products, so it doesn’t come as a surprise they play in the home sharing space. In addition to typical coverage, April also offers optional endorsements for vandalism and theft, as well as liability extension for boats made available to guests.
Square One Airbnb insurance
Square One Insurance specializes in all home insurance. They have Airbnb insurance if you occasionally rent your home to others through home-sharing programs. It covers accidental damage to your home and property and your exposure to personal liability. It does not include the guest’s property or their personal liability. It starts at $40/month, and you can pay monthly with no contracts.
Wawanesa short-term rental coverage
Wawanesa offers a short-term rental endorsement that can be added to a new or existing Wawanesa home insurance policy. The endorsement covers theft and attempted theft caused by tenants and their guests, damage caused by tenant vandalism, up to $1,500 for theft or damage to a guest’s property, and loss of income.
The bottom line
Are you willing to pay a little extra for home-sharing or short-term rental home insurance? $20-$40 per month is less than you can charge for one night’s stay at a place you call home. But, before you turn your house into a rental property, shop around to find a provider that offers an Airbnb endorsement. Be sure to review the policy in depth, so you know what you’re protected for.
Airbnb is more than an inflated mattress, and your home deserves more than your standard coverage provides. It’s best to get a few home insurance quotes to find the most affordable rate with the right protection. Make the most of your Airbnb without risking unexpected expenses.