4 tips on home insurance when renting with Airbnb or HomeAway
Airbnb and HomeAway are popular platforms for short-term home rentals. In addition to allowing travellers to experience life as it's lived at their destination for an affordable price, these platforms are also popular with homeowners who can take advantage of the investments they have made in their property.
But the experience is not all positive. Some hosts have suffered vandalism, property damage, theft and civil suits to name a few of the risks to which they are exposed. That's why you need to be well-informed and have good home insurance! Here are a few tips from La Capitale's blog:
Notify your insurer when you start offering your home for rent
Your insurance covers you against standard risks when you lend out your home to family members or friends on an occasional basis.
But the Insurance Bureau of Canada (IBC) recommends that you call your insurer before handing over the keys to strangers. Your insurer will check that you have adequate coverage for this usage of your home so you'll know if you will be compensated in the event of loss, theft, vandalism, etc. If necessary, the insurer will adjust your coverage and let you know the new terms and conditions. Since renting is a commercial usage of your property, certain limits apply.
Ensure you have adequate civil liability coverage
Don't forget to check what is covered by your home insurance! When you rent out your home, there are numerous situations in which bodily injury or property damage could be caused to third parties. For example, what if a guest staying at your home doesn't clear the snow from the entryway and a visitor falls and gets injured? You could be held liable for that person's injuries and have to pay damages. Having appropriate civil liability insurance will save you from worrying.
Read the fine print before taking the plunge
Read and follow the security advice on the platform. It can be very helpful, but nothing beats personalized advice from your insurer. Find out about all the platform's warranties, policies and conditions of use. Being prepared will help you know what to expect.
Reduce risk with a few simple steps
- Don't agree to rent your home to just anyone. Be alert to signs that a potential guest might cause problems.
- To the extent possible, don't leave any valuables in your home when you rent it.
- If possible, remain in the area while guests are staying in your home. If you can't, ask someone you trust to drop in to make sure everything is alright during their stay.
- Give this person's contact information or your own to your guests so that they can reach you if necessary.
Benefit from the new partnership with La Capitale!
If you are a DuProprio client, feel free to ask for a La Capitale General Insurance quote. You'll receive an additional 5% discount and savings of up to $360 by bundling your home, auto and leisure vehicle insurance.