Compare short term rental insurance quotes for Airbnb insurance, VRBO insurance, and more

Q: Does homeowners insurance cover short-term rentals?

No, you need special accommodation from your insurance company to allow for short-term rentals.

Q: How much is short-term rental insurance?

You can get short-term rental insurance for as little as $8 per night. However, much will depend on the size and location of your property. Get a short term rental insurance quote today to find out how much it would be to insure your property.

Are you an avid short term renter? Did you know you need VRBO or Airbnb insurance? Speak with an insurance broker to get a short term rental insurance quote today.

Why do I need short-term rental insurance in Canada?

Matt Hands, VP, Insurance and MoneySense

October 5, 2023

If you’re renting out your home on Airbnb, Homeaway, VRBO, or any other platform you need insurance for your short-term rental property. While Airbnb host insurance or VRBO host insurance promises protection, without informing your home insurance provider, you’re leaving yourself open to lawsuits, litigation, loss of income, and other potential shortfalls in your insurance policies.

In fact, most insurance companies will decline to insure your house if you temporarily rent it out. The technical insurance term is called misrepresentation if you choose to rent out your property without informing your insurance carrier ahead of time. By operating a business from your home (e.g. Airbnb, VRBO, Homeaway), the risk profile changes. In simple terms, lying to your insurer, or failing to inform them of potential risks, you could end up with more problems than you bargained for.

For example, let’s say someone injures themselves during their stay and chooses to sue you. Airbnb or VRBO insurance coverage has you covered for up to $1 million USD. But, if they request more, and you haven’t told your home insurance company, they could deny your claim and cancel your coverage altogether. This would leave you on your own to pay any potential damages awarded from a successful lawsuit.

Instead, with liability insurance for your short-term rental in place, you have coverage to handle any overages.

As another example, If a fire breaks out burning your home to the ground, Airbnb insurance won’t protect your loss of rental income in Canada which could lead to late mortgage payments on your rental property. In a worst-case scenario a guest could lose their life, or be unable to work for life, will $1 million USD be enough? Having a short-term rental policy is the best way to insure you have the protection you need to securely rent out your home.

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What does Airbnb insurance cover?

Airbnb Host Guarantee	Things to know
Property damage program through Airbnb. As a host, you may be protected up to $1,000,000 USD if your space or belongings are damaged by a guest.	Does not cover theft of cash and securities Does not cover any damage from “wear and tear” Does not cover any bodily injury or property damage to guests or others (may be covered by host protection insurance below) Does not cover any damage over $1,000,000 USD

Host protection insurance	Things to know
Gives you legal liability up to $1,000,000 USD if a guest or third party gets hurt or their property is damaged. Covers damage to common areas including building lobbies or neighbouring properties	As the host, you must be legally at fault for the guest’s or third party’s injury or property damage Does not cover damage or injury resulting from intentional acts (not an accident) Does not cover loss of income Does not cover liability over $1,000,000 USD Subject to (many) terms and conditions

What should short-term rental insurance for owners include?

Don’t let one bad guest or once-in-a-lifetime accident ruin your income property, let’s look at what you need on your home insurance policy.

Disasters

Liability

Contents & theft

Builder’s risk

Loss of income

Who offers short-term rental insurance in Canada?

The following home insurance companies offer home-sharing insurance in Canada:

April
Aviva
Duuo (underwritten by the Co-operators)
Square One
Wawanesa

Short-term renter tips for homeowners, condo owners, and tenants

Choose guests wisely
Don’t rent your home without speaking to potential renters and finding out their intentions. Consider turning down high-risk applicants.
Reduce the risk of theft
Don’t leave valuables out in the open. Put them in a safe, or better yet, have a ready-to-go travel bag to bring your valuables with you.
Stay nearby
If you’re renting out your house, try and stay nearby to support your guests. If you’re traveling, give your guests a phone number of someone you trust to handle any situations as they arise.
Understand your rental agreement
Familiarize yourself with the terms and conditions of the rental agreement between you and the platform. Knowing the rules will help you better understand what you’re getting into.
Seekout landlord approval (if needed)
Ensure your landlord is ok with you leasing your space and follow the building or condo rules about short-term rentals. Many times they aren’t allowed.
Follow recommendations
Whatever platform you choose will have safety tips, follow those as well.
Take an inventory
Document all your belongings in your rental space or home and supply them to your insurer. Receipts and photos are great, but at least a video walk-through.
Leave a guide
If a guest unintentionally uses an appliance or electronics, it can damage their stay and your staff. Leaving a guide with instructions on how to use everything can save you from unnecessary headaches.

FAQ about short term rentals

Does homeowners insurance cover short-term rentals?

How much is short-term rental insurance?

Does Airbnb have insurance for guests?

Yes, Airbnb does cover guests staying with you, but there are some issues. Airbnb’s host guarantee can usually only be used after trying and failing to recover damages directly from the guest. So, if a guest damages your property, you first have to show that you’ve made an attempt to chase the guest down for the repair bill before Airbnb will step in. Other rental platforms may make you approach your primary home insurance provider first.

Do I need special insurance for Airbnb?

Yes, short-term rental insurance will cover you where Airbnb fails. For example, let’s say you have a back-to-back booking leaving you barely enough time to clean and change the linens. According to Airbnb’s terms and conditions, “You must notify Airbnb as well as the Responsible Guest about your complaint and attempt to resolve the loss or damage with the Responsible Guest within the earlier of (i) fourteen (14) days of the check-out date, or (ii) before your next guest checks in.” So, if you missed any damage, it’s possible that they won’t cover you, but your personal short-term rental insurance policy would.

Default Does Airbnb insurance protect against damage?

Technically yes, but it may not be enough contents insurance for the valuables you have. Airbnb has an actual cash value policy that includes depreciation. In other words, you might only get $500 for the $2,000 TV you bought last year. While most home insurance policies are the same (meaning they have actual cash value protection), you can up your policy to a replacement cost policy. It’s more expensive, but you’re buying coverage to get your rental back up to speed quickly without delays.

Matt Hands, Business Director of Insurance

With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio

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