Airbnb Insurance Woes - If you are renting make sure you speak to your insurer

June 14, 2019, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

Are you renting your property out on Airbnb? Insurance companies and brokers are all warning that you should make certain you are properly insured. It's no different than renting out your cottage than your home or income property. Without the proper insurance you will be liable for costs in the event of injury, death or accidents.

BEFORE you get into the business of renting a property out make sure you have checked your current insurance and speak with your insurance agent or broker. This applies even if you are only renting out portions of you home. Renting your property out changes your risk profiles and may void your current policy. Renting changes the underwriting of the policy.

Brokers are reporting that they are receiving more calls these days from customers asking about the impacts of renting their homes and properties on their insurance. The answer to the question varies on many factors including the frequency of rental, how it is being rented, and what you are renting.

Insurers have options for deal with rentals, and some have even created new lines of business to handle short term property rentals. They take the form of a special policy that can be added to an existing homeowner policy for the days you rent it. Other insurers may require highly specialized commercial policies depending on the nature of the property, its value, and the number of days it is rented. There is no simple answer and you must contact your own agent to confirm what options you have and what they will cost.

It is important to understand that wile some hosting sites offer certain insurance plans they don’t cover everything by any means. The policies supplied by Airbnb for example cover up to $1 million US in property damage and bodily and liability damage specifically state that you should purchase insurance ‘that will cover you and your property for losses caused by guests or guests’ invitees in the event your loss is not within the terms of the Airbnb Host Guarantee”.

You should remember that your personal homeowner policy is not designed to carry the liability involved with having strangers stay in your property on a regular basis, and particularly if you aren’t even there.

The Insurance Bureau of Canada has a fact sheet on Rental Coverages  and this portion is particularly interesting:

Renting Out Your Primary Residence?

A major sporting or cultural event is coming to your city. You decide to rent your home to visitors for a few weeks and take a holiday. While you are away, a burglary occurs and your jewellery is stolen. You call your insurer to make a claim. Are you covered?

• Your homeowner’s policy was designed specifically for you and sold with the expectation that you, the owner, would reside in the dwelling.
• Some policies may not permit you to rent your home to someone else, even for a short period of time.
• Before you rent your home, or even a portion of it, check with your insurance representative to determine how the arrangement may affect your insurance coverage.

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

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