Renting out your home on a short-term basis can be a great way to generate extra income and home sharing has become a popular means of accommodation for vacationers and travelers. Before you take that first step and open your door to guests; be sure to fully understand your insurance needs in order to protect you and your home.
According to Canadian insurer Aviva, more than half of the people who currently share their homes are not aware their home insurance policies will not cover losses or damage related to home sharing. When you rent your home on a short-term basis, it’s considered a business activity, and this is excluded under a Homeowners insurance policy.
If you plan to share your home, your current policy can remain in force provided you notify your insurance company and special home-sharing coverage is added. While home rental networks such as Airbnb offer “host insurance protection,” this should never replace a home-sharing policy as these policies only offer limited liability coverage for injuries and they don’t protect your home or property.
If home sharing is something you are considering, please contact us and we can review the details and provide an insurance quote. Failure to have the correct coverage could potentially result in a denied claim and the cancellation of your property policy.