Vacation stays in hotels are becoming a thing of the past as home-sharing services such as Airbnb Insurance are taking over the market. On average, an Airbnb host can make upwards of $2,000 a month, making it a fairly lucrative endeavour for many people in the city and the GTA alike.
With more than 9,500 entire-home Airbnb listings in Toronto alone, homeowners and short term rental landlords need to protect themselves and their properties. We offer comprehensive policies for Airbnb insurance in Toronto, that can provide you coverage against numerous risks unique to short term rental units.
Rest easy when guests stay in your home or rental property when you choose Insurance. Keep reading to find out why we’re the right insurance broker for you.
I Already Have Home Insurance — Do I Need Airbnb Insurance?
Most property owners already have an insurance policy in place, such as home owner’s insurance to protect their living space, personal property, and basic liability. But it’s not the same when you’re using your home for business, such as rentals. Your basic home insurance coverage does not cover damage caused by business and income-generating activities, such as Airbnb hosting.
As an Airbnb host, your home is also your place of business. You create a listing, set the price, stage it for inviting photos, manage bookings, and restore the place when guests check out — just like hotel management. While Airbnb may include insurance protection through fines and additional charges unruly guests pay for the damage they caused, you will still want to take all necessary precautions to protect your biggest investment. Before you hit post, remember to talk to your broker about how being an Airbnb host may impact your insurance coverage.
What Does Airbnb Insurance Cover?
Airbnb guarantees two types of minimal insurance protection:
- Host protection insurance: typically provides up to $1 million in liability coverage for injuries or property damage sustained by third parties, such as guests, condo management, and neighbours.
- Host guarantee protection: provides up to $1 million of property damage coverage due to accidents, theft, and other losses caused by guests.
Why Is Airbnb Insurance So Important?
Airbnb insurance is unlike any other kind of homeowners’ insurance available. Most homeowners’ insurance policies do not provide coverage for short-term rental properties, leaving you vulnerable to guests staying in your home even if you do have this kind of insurance. Additionally, making sure that there is proper coverage in place will guarantee that you are protected against liabilities that are unique to being a home-sharing host.
While the Airbnb platform itself does offer its hosts some protection, it does not provide the extensive coverage that you need, especially in instances of theft. It’s a nice starting point, but these policies cannot replace an insurance policy, which they even state themselves. That is why it is so important to ensure that you have Airbnb insurance in Toronto in order to make sure that you have coverage that even the platform cannot provide.
Airbnb And Short-term Rental Insurance
The coverage limits provided by Airbnb might sound a lot, but the cost of legal fees, settlements, home repairs, and property replacement can easily rack up. You could end up dipping into your savings or wiping out rental income as a result of liability claims and additional repair costs.
A comprehensive Airbnb insurance policy builds on your existing home insurance policy by providing additional coverage that the Host Protection and Host Guarantee Protection cannot cover. This coverage also extends your home insurance policy, since damages and injuries that occur when the property is in use for Airbnb rentals may not qualify.
What Does Airbnb Insurance Cover?
The degree of coverage that you will receive through Airbnb insurance in Toronto will depend on the policy that you get. However, there are a few features that you can expect to be included in your policy, including:
- Bodily Injury: If a guest suffers from a severe injury while staying at your rental property, you can be held responsible as the owner. If they make a claim against you, Airbnb insurance in Toronto can make sure that you don’t have to pay exorbitant legal and medical fees.
- Vandalism & Property Damage: In the instance that your property is vandalized or damaged by your guests, you are covered. Typically, this particular insurance policy can assist in paying up to $1,500 to fix any of the damage done.
- Extensions of Liability: Should your guests cause damage to your neighbour’s home during their stay, you will likely be held financially responsible. Having insurance offers coverage for acts of vandalism, water damage, and infestation to neighbouring property.
- Theft & Attempted Theft: While you may conduct a thorough vetting process before you let guests stay in your home, you never know what might happen. With Airbnb insurance in Toronto, you and your rental property are protected when it comes to acts of theft during your guests’ stay.