Airbnb Insurance: Home Sharing & Short Term Rental Insurance

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What you need to know about Airbnb insurance for short term rentals

Short-term rental insurance is necessary if you rent out your property on Airbnb. Renting your primary residence or a secondary location on Airbnb or other short-term rental platforms requires you to know what your insurance policy covers. If you don’t have the right coverage in place, you could void your home insurance policy. You will also be on the hook to pay for the damage from guests out of your pocket.

Hosting guests in your home or short-term rental can be a great way to earn additional rental income. But it’s also a business venture and a risk that needs to be managed. Property damage, vandalism, theft, and personal injury can happen. You need insurance that covers Airbnb rentals. All it takes is one issue, event, or liability claim to take away the income you’ve earned through the rental.

Compare quotes for home sharing and Airbnb insurance from the top insurance providers. Get started online or give us a call and speak with an advisor. Keep reading to learn more about short-term home rentals on Airbnb and being properly protected.

What is Airbnb insurance?

Airbnb insurance is a form of short-term rental insurance. You get it from your insurance provider, not from Airbnb. Most insurance policies do not cover Airbnb rentals. If you offer short-term rentals, you will need insurance that is beyond your current policy. As soon as you offer your property for rent on a home sharing website, your home becomes a business.

Why do I need Airbnb insurance?

You may be wondering why you need more insurance if Airbnb already provides it. There are many important reasons Airbnb insurance is necessary. They include:

Your homeowner's insurance does not cover this type of rental activity.
The plan offered by Airbnb and other home sharing providers is not enough.
Airbnb insurance provides you with specific coverage from threats related to renting.
Get extra coverage for additional risks such as theft, vandalism, harm to personal belongings, and injuries to renters while on your property.
Ensure you have the right amount of protection.

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How do Airbnb and home sharing insurance work?

Short-term rental insurance is like landlord insurance. It provides you with coverage for your place when you lease it out to other people. Short-term insurance is a policy specifically for home sharing and Airbnb. It gives you liability protection for short-term rentals and protects all items within your unit against theft, damage, and other perils.

It is unique because it's not commercial property insurance and a standard homeowners policy will not cover it. So, you need home sharing insurance if you plan to rent out your residence.

What does short-term rental insurance cover?

a Airbnb house with pine trees, mountains

Home sharing unit coverage provides a lot more protection than most realize. In addition to supplementing what is not included by Airbnb and other host platforms, plans include:

Theft by guests
Damage by guests
Legal liability protection
Loss of income from destruction by guests that make your unit unrentable
Lock and key replacement
Protection if guests use excessive water or hydro – for example, a guest leaves the water running all day

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An Airbnb insurance example

You decide to list your home for rent on Airbnb. You make the assumption the basic coverage offered through the platform is enough to cover you if something happens to your property. So, you don't bother to contact your insurer.

Fast forward a few months and your dishwasher springs a leak while one of your renters is washing the dishes. The dishwasher is damaged and cracks a pipe, causing extensive water damage in your kitchen and basement. You’re covered by Airbnb, right? Not exactly.

Airbnb could make the case that the water damage was caused by your dishwasher, or that you failed to properly maintain it.

You also won't be covered by your home insurance policy. In failing to notify them that you are renting your home on Airbnb, you’ve potentially voided your coverage. They will not cover the claim. So, you would be forced to pay for repairs yourself. If you would have added Airbnb insurance, the damage would have been covered.

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How to get Airbnb insurance

Get started by comparing quotes for Airbnb insurance from the top insurers who offer short-term rental coverage by following these easy steps:

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2) Enter your property details

Enter some information about your property.

3) Compare rates

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Choose your policy

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Who needs short term rental insurance for Airbnb?

Any owner who rents out their place on a short-term basis needs an Airbnb policy. This includes renting out your entire home, a separate unit, or a room. You need a plan if:

You use Airbnb or other home sharing platforms.
If you take part in home exchanges.
If you occasionally rent out your condo unit, cottage, or vacation home.
You rent out your primary residence or condo while you are away.

Note that some condo buildings do not allow Airbnb rentals. Subletting your unit does not qualify you for this type of insurance.

Airbnb already provides insurance – isn’t it enough?

The Airbnb platform does offer basic plans for all hosts. However, it doesn’t replace insurance for your property. Airbnb recommends you take out additional protection against loss, liability, and other risks associated with having guests stay in your home short-term.

What insurance does Airbnb provide?

Airbnb provides hosts with two types of coverage free of charge. This is included if you are a member of the platform and rent your place. They are Host Protection insurance and Host Guarantee protection.

Airbnb host protection insurance

Called host liability insurance, it is part of AirCover for Hosts. This provides you with third-party liability coverage. You have USD 1 million in protection. It covers claims for loss or personal injury. It includes coverage for bodily injury, damage, or theft of belongings of a guest, and damage caused by a guest to building lobbies, common areas, and other shared spaces.

Airbnb host guarantee protection

This provides you with property damage protection. It helps to protect you against some types of damage by guests to your personal belongings. Contents insurance with Airbnb is not comprehensive. This is NOT an insurance policy.

What isn’t covered by Airbnb?

Even though Airbnb does provide you with basic coverage, there are many things not included. It’s important to read the terms and conditions carefully to understand the coverage you have with Airbnb. This will help you determine how much additional insurance you require. Here are common things not included in the plan from Airbnb:

Intentional acts by your guests.
Safety or health issues in your residence causing harm to guests.
Plans from Airbnb are only valid when guests are staying at your residence.
It does not cover loss of earnings if someone is hurt during their stay.
You only have protection up to the limit in the Airbnb policy.
Defamation
Weather damage

There are a variety of terms and conditions you need to meet for coverage to apply. You could also have challenges dealing with Airbnb to file claims in a timely manner.

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What types of insurance do I need for Airbnb rentals?

No two short-term rental situations are the same. It’s important to customize your policy to meet your unique needs. Most Airbnb hosts add coverage for additional liabilities and contents. They also add accidental damage, rental interruption, and legal expenses. Speak with your insurance advisor to get the best Airbnb insurance for your situation.

How much does short-term rental insurance cost in Canada?

Short-term rental insurance costs are determined based on your property and coverage requirements. Insurers use a series of factors to determine the cost of your premiums. They consider:

Plan limits
Location and property type
Size of the space
The items in your unit
Replacement cost of the contents
Your rental activity levels
Claims history

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What insurance companies offer home sharing and short-term rental insurance?

Since it’s a specialized product, not all insurance companies offer Airbnb insurance policies. Some of the providers include:

April Canada - April short-term rental insurance
Aviva Canada - Aviva home sharing insurance
Wawanesa insurance - Wawanesa short term rental coverage

Speak with our advisors to compare the best short-term rental insurance quotes.

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What other home sharing services require insurance?

Airbnb is not the only short-term rental platform that requires additional insurance. If you rent your property using any of these platforms, you should have extra insurance. Here are some of the home sharing platforms we can help you get:

We may also be able to offer insurance products from other platforms. Please contact us to inquire if coverage is available.

Airbnb home insurance FAQs

What is short-term rental insurance for Airbnb?

A short-term rental is another way to refer to home sharing. Owners lease out a unit or property at their primary residence or vacation home for short-term stays with platforms like Airbnb. This can be a couple of days or even a week. Typically, it is no longer than 30 days. Short-term rental insurance for owners provides plans for the rental space – this includes liability and contents insurance.

Do you need extra insurance for Airbnb?

Yes. Airbnb only offers limited coverage. You may have risk exposure if you do not get additional insurance. Speak with your insurer about your plan options.

Does Airbnb have insurance?

Yes. Airbnb does offer hosts free protection plans. But it has limitations. Your home insurance in Ontario and other parts of Canada does not cover short-term Airbnb rentals. You require extra insurance to ensure you have proper protection.

Does Airbnb insurance cover fire?

It is highly recommended hosts ensure they have additional measures to protect themselves in case of fire. This is one of the biggest threats to your dwelling. Make sure you have adequate fire insurance for your Airbnb rental.

Does Airbnb have insurance for guests?

People using the platform as guests should consider getting travel insurance. This is particularly important if you are travelling out of the province or outside Canada.

Does Airbnb cover liability insurance?

Yes. All Airbnb hosts have up to $1 million in liability protection. It’s recommended to increase your plan limits to $2 million or more.

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Canadian Airbnb stats

Airbnb has a strong presence across Canada. According to a research report at McGill University, Short-term rentals in Canada: The first comprehensive overview, About 46% of all active listings are in Toronto, Montreal, and Vancouver. These hosts earned over $1.8 billion (2018).

Alltherooms.com provides information about the occupancy rate and activity by city:
Canada has an average Airbnb occupancy rate of 27% (2022/2023)
Calgary is the city with the highest occupancy rate (33.7%), followed by Vancouver (32.2%), and Ottawa (29.7%)
Toronto has the most active listings (42,742), followed by Montreal (35,872), and Vancouver (12,463)

Tips to keep your Airbnb safe

a deck at a cottage looking at the water

Airbnb and home sharing units are meant to be income generators. Owners should take steps to protect the property and ensure it's in ideal condition so they can rent it out to meet their short-term rental goals. You can protect your investment by ensuring you take these steps:

Make sure you abide by all municipal, provincial, and federal regulations.
Have a list of house rules you expect all guests to follow.
Purchase additional insurance to protect your dwelling.
Do not leave valuables or personal items in the unit.
Charge a security deposit for incidentals.
Install a security system.
Use smart locks to secure your residence and make it easier to transition between guests.
Change passwords regularly (Wi-Fi, garage, smart locks, alarm systems).
Have a list of all contents in your units.
Leave a guidebook to provide guests with instructions on how to use electronics and appliances.
Perform regular maintenance to avoid potential hazards.
Do not permit smoking indoors.

Get a quote for short-term rental insurance

Home sharing can be a great investment to help you earn some extra money. But it can be a liability without the right insurance coverage. Protect your investment with short-term rental insurance for your Airbnb listing. Compare Airbnb insurance quotes with ThinkInsure to find the best rates.

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Insurance Blog And News

Read our insurance blog to get helpful tips, information and news.

2024-12-03

Airbnb Insurance & Short Term Rental Insurance

Get Airbnb insurance for short-term rental coverage to protect your home and property.

Compare home insurance rates from the top providers

What you need to know about Airbnb insurance for short term rentals

What is Airbnb insurance?

Why do I need Airbnb insurance?

How do Airbnb and home sharing insurance work?

What does short-term rental insurance cover?

An Airbnb insurance example

How to get Airbnb insurance

1) Begin

2) Enter your property details

3) Compare rates

Choose your policy

See our customer reviews

Who needs short term rental insurance for Airbnb?

Get Airbnb insurance so you're covered for short term rentals

Airbnb already provides insurance – isn’t it enough?

What insurance does Airbnb provide?

Airbnb host protection insurance

Airbnb host guarantee protection

What isn’t covered by Airbnb?

What types of insurance do I need for Airbnb rentals?

How much does short-term rental insurance cost in Canada?

What insurance companies offer home sharing and short-term rental insurance?

What other home sharing services require insurance?

Airbnb home insurance FAQs

What is short-term rental insurance for Airbnb?

Do you need extra insurance for Airbnb?

Does Airbnb have insurance?

Does Airbnb insurance cover fire?

Does Airbnb have insurance for guests?

Does Airbnb cover liability insurance?

Canadian Airbnb stats

Tips to keep your Airbnb safe

Get a quote for short-term rental insurance

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