Most people have heard of Airbnb, HomeAway and other home sharing companies. These corporations aren’t foreign to most who travel, bringing in hundreds of thousands of hosts across the globe and an alternative to hotel stays. While this idea can be a good financial decision for both the hosts and the guests, there are some details that are very important to note. If you or someone you know is making the decision to do home sharing, you’ll want to keep reading!
Home sharing is one of those big booming industries that has really taken off. And this doesn’t exclude Canada. Even up here, home sharing has been on the rise. It’s a great option for hosts to make additional income and great for the guests who want a little more variety when they travel. However, when it comes to insurance, things can get a little precarious.
To start, it’s important to note that if you are considering renting out your home, you have to be aware that your current home insurance coverage might not cover the guests. Companies like Airbnb offer basic coverage that will act as primary coverage for damage to renter’s own possessions, but doesn’t cover for things like property damage that is caused directly by the guests, compensation for theft, or coverage for damages like pets or other valuables. In this case, you are still required to pay for these expenses. Their other options for coverage will only cover up to $1 million in insurance if the guests are injured in your home. So, when you think about it, offering your home to a service like this may present some liability issues.
So, what should you do? Like we always mention to our clients; if you aren’t sure what and who your current insurance coverage will cover, contact your insurance company. There is a home insurance offered by Aviva that has rolled out nation-wide that works with many home sharing companies. Many people don’t realize that their standard homeowner’s insurance policy doesn’t cover losses or damages that may occur from commercial activity of renting out your home. This is a smart option that home sharers should look into. A home sharing policy includes:
• Up to $1500 of guests lost or damaged property
• Intentional acts, criminal acts or failure to act by a guest
• Loss or damage to personal belongings or the buildings
• Fair rental value (loss of rental income)
• Liability rising with a short-term rental
It’s also important to note that this coverage is not intended for long-term basis. The coverage is specifically designed for hosts that are looking to rent out a portion of their home on a short-term basis.
If this is something you want to look into or want more information, contact your insurance broker. At Bedrock, we’re proudly here to assist all our clients with personalized insurance coverage tailored just for you. Contact us today and let us get you covered!
Contact Us: 416-907-2130
Check out this video to learn more about the insurance liabilities on home sharing!