Where Can I Get Liability Insurance For My AIRBNB In Canada?
If you’ve taken an Uber or ordered from Ubereats you may also be thinking about where can I get liability insurance for my AIRBNB in Canada? The disruptive economy offers Canadians new and creative ways to supplement and/or build a sustainable income from scratch. If you own a cottage or a condo in a popular tourist destination, renting out a room or two or even your entire home may make great economic sense. Or, if you’re thinking about retiring in a few years, buying a house where you’d like to live could be simplified if you sign up for one of the many popular short-term rental facilitators such as AIRBNB. Alternatively, you may have a small business that manages short-term rentals across a portfolio of properties. Like any other business venture, if you’re part of the short-term rental economy or about to jump in, “Where can I get liability insurance for my AIRBNB in Canada?” is an important question to ask.
Disruptive Economy + Short Term Rental Opportunity = Where Can I Get Liability Insurance For My AIRBNB In Canada?
According to a recent article in Canadian Underwriter, “Specific figures for the short-term rental insurance industry are hard to come by. Fortunately, we can look at some third-party data to gauge the growth of this sector. AirDNA, a firm that tracks hundreds of markets for property owners or investors looking to capitalize on the short-term rental trend, shows the cumulative number of active listings in the Montreal market rising from about 2,900 in 2014 to 7,000 in 2015, to over 14,000 in 2016. …In slightly less popular Toronto, cumulative active listings climbed from 1,900 to 4,700 to about 10,000 over that same period. All of these short-term renters need insurance for their guests – or at least, they should purchase some if they want to be financially responsible. We encourage everyone to check with their insurance providers,” in order to make sure they’re properly covered, said Aaron Zifkin, Airbnb’s Country Manager for Canada, in an interview with Insurance Business Canada.”1
What You Need To Know To Get Liability Insurance For My AIRBNB In Canada
You may not be aware that typical personal lines condo and homeowners policies don’t appropriately cover any/all commercial uses for your property. In fact, renting out your property to others could nullify your coverage and leave you in an extremely risky situation. For instance, “overflowing plumbing, out-of-control pets, collateral damage from parties or simple accidents, new people in an unfamiliar space they don’t own can mean problems. In the event of serious injury or catastrophic damage, not being covered can wipe out a homeowner’s savings or forfeit their property in the ensuing suit.”2
Related Matters: Airbnb type properties in tourist hotspot a likely regulatory target
While AIRBNB offers insurance, coverage gaps have the potential to leave you and your property unprotected. Renting out your property to others via AIRBNB or other websites amplifies the risks your property faces throughout the year. That’s why we encourage you to ask an ALIGNED Insurance broker “Where Can I get liability insurance for my AIRBNB?”. Across Canada, we understand the market and where appropriate insurance for short term rental properties can be found. To get the process rolling, we’ll need information about your short term rental property such as:
- Mailing address
- Frequency of rentals (current or anticipated)
- Information about replacement cost for rental property contents
- Any historic property insurance claims
Source(s): 1,2 Canadian Underwriter: How Airbnb is changing the home insurance industry
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