What you need to know about home insurance and Airbnb
Airbnb is a great way to make extra cash by renting out your home or apartment when you're not using it. If you're planning a long vacation or are being temporarily relocated for work and don't want to give up your space, renting it out on Airbnb can help cover the costs while you're away. That sounds like a great idea, doesn't it? But what about the logistics of temporarily renting out your space over the long term?
Having overnight guests in your home is very different than having part-time tenants while you're away. If you want to keep your personal belongings, the structure, and your guests safe, you'll need home insurance.
Could you imagine renting out your home for a month and coming home to find the dishwasher or stove broken? Could you imagine leaving strangers in your home for the summer and coming back to find the place completely trashed? That would not be money well spent or invested. The last thing you want to do is rent out your home to make a little extra cash and have the damage cost more than you made. That's where having home owners insurance comes in.
Here's what you need to know about home insurance and Airbnb in Canada:
Check the Airbnb coverage
Airbnb offers insurance for anyone who is renting out their home or apartment. It's called Host Protection Insurance and liability coverage to hosts (that's you) as well as their landlords (if you rent an apartment) while away from home and renting out your space on Airbnb. Of course, like most insurance policies the Airbnb Home Protection Insurance has some conditions, limitations and exclusions.
Airbnb says before renting out your space be sure to confirm you have full insurance coverage with them as well as your own independent home owner's insurance: "Some policies protect homeowners and renters from certain lawsuits that result from injury to a visitor, while others do not. It’s always a good idea to let your insurance carrier know about rental activity in your space even though liability arising during an Airbnb stay should be covered by the Host Protection Insurance policy."
Find out if you're covered for long term absences
Some insurance policies become void if you leave the premises for prolonged periods of time. If you're planning to be away from home for more than 30 days, contact your insurance company prior to leaving to ensure your standard home insurance policy still stands. If not, you may need to buy additional coverage to make sure your home is still safe.
Talk to your insurance company
It's also a good idea to talk to your insurance company and let them know that while you're away there will be someone else living in your home. This may eliminate the need for additional insurance because technically someone will be living in the home – it's just not you. Speaking to a professional insurance agent can help you work through all the fine print to keep your home and your belongings safe while you are away and using Airbnb to fill the gap.