There’s no questioning the fact that Airbnb and other home-sharing networks like it are all the rage right now.
Why shouldn’t they be when you can get incredible deals on vacation rentals and save money while doing it? Airbnb and other home-rental networks like FlipKey and HomeAway have seen massive success recently, and even now more and more Canadians are considering turning their homes into rentals. Unfortunately, over half of Canadians who are considering home-sharing are unaware that their home insurance will not cover this particular practice.
According to Aviva Canada, 51% of home-sharing Canadians are unaware that their current insurance coverage won’t protect them against losses or damage caused by rental users. If you are considering joining a home-sharing network, we recommend purchasing Aviva’s Home-Sharing Insurance first.
What is Home-Sharing Insurance? Is it expensive? What does it cover? In this blog, we will break down Home-Sharing Insurance for you to understand better.
What is Home-Sharing Insurance?
Aviva is the first company in Canada to offer Home-Sharing Insurance. It ensures that you have protection if you rent out your home or a portion of your home on a sharing network, such as Airbnb or Homeaway. Your Home-Sharing Insurance policy may cover the following list:
- Damage to buildings and personal property
- Intentional acts, criminal acts, or failure to act by a guest (such as vandalism and theft)
- Damage caused to a guest’s property up to $1,500
- Loss of rental income (fair rental value)
- Liability coverage from problems regarding a short-term rental
*Please note that to add Home-Sharing Insurance from Aviva, Aviva must be the provider of your stand-alone home insurance policy.
If you are in the midst of weighing the pros and cons of renting out your property through a network such as Airbnb, you should contact your insurance broker to discuss your existing renter’s or homeowner’s insurance policy. If you depend strictly on these policies alone, there may be some sizeable gaps in your coverage which could leave you at risk financially.
What Are My Options?
Your Home-Sharing Insurance may present several different options. Discuss with your insurance broker to have any of the following options added to your insurance policy, so long as you are eligible.
- Option 1: Rent your entire home for up to 90 days
- Option 2: Rent your entire home for up to 180 days
- Option 3: Rent a portion of your home (e.g. a room, a basement) to multiple short-term guests year-round
- Option 4: Rent your income property to short-term guests year-round. This coverage is also available as a stand-alone policy, even if your primary residence is not insured by Aviva
**Options 1-3: are available for homeowners, condo owners, and seasonal/secondary home and condo owners.
***Option 4: is only available for rental income property owners.
It is also important to keep in mind that every insurance provider will have restrictions or requirements. Many insurers will request an advanced notice of short-term rental, whereas others may suggest you purchase an insurance rider to enhance your existing coverage. Not sure what the right coverage is for you? Give us a call at 1-888-298-7343 to discuss your options or read this guide on Risk Insights for Airbnb Hosts.
How Much Does Home-Sharing Insurance Cost?
The premium for Home-Sharing Insurance is based on several factors including, your current home insurance premium, how many days of the year you will rent out your home, and other factors individual to your situation.
You Are A:
Current Home Policy Premium
Estimated Cost Of Home-Sharing Insurance
|Home, condo, or seasonal/secondary homeowner ||Entire home up to 90 days ||$900 ||$180 |
|Home, condo, or seasonal/secondary homeowner ||Entire home up to 180 days ||$900 ||$360 |
|Home, condo, or seasonal/secondary homeowner ||Portion of your home to multiple short-term guests year-round ||$900 ||$180 |
|Rental income property owner ||Entire income property to multiple short-term guests year-round ||$900 ||$360 |
****These quotes are for illustration purposes only and are subject to change. Personal details may affect your rate. Talk to your insurance broker for more information.
To get a cost estimate for Home-Sharing Insurance, you can visit Aviva’s website and try their online quoting software. Or give us a call at 1-888-298-7343 to speak to one of our licensed brokers.
Remember: your renter’s or home insurance is intended for personal risks, and not commercial usage. So, if you are looking to rent out your residence or a portion of your home on a regular basis, this will be considered commercial usage. Regular hosts on Airbnb and other similar home-sharing networks will need to purchase a commercial insurance policy to guarantee adequate insurance.
Finally, Airbnb also offers hosts two separate forms of coverage: Host Protection Insurance and Host Guarantee. It is important that hosts do not depend solely on these products, as they still may leave gaps in their insurance. This is because intentional actions will not have coverage, nor will property issues such as bedbugs, mould, or asbestos be covered. Finally, the property of the guest and any damages or theft caused by a guest will not be covered. It is advised that you talk with an insurance broker to review any necessary policy adjustments to ensure full coverage.
To get a cost estimate for Home-Sharing Insurance, give us a call at 1-888-298-7343 to speak to one of our licensed brokers.