Home Sharing Insurance
Home sharing opportunities are on the rise with many people across Ontario using their dwelling as a way to bring in extra income while also offering a way for travelers to find affordable accommodation. To keep up with the rising trend insurance companies have adapted and now offer some form of Home Sharing Insurance package.
Getting the right insurance
If you are considering home sharing then check with your insurance provider first to make sure you have the correct coverages in place in the event of a loss. Many consumers do not realize their personal home insurance does not cover any damage through home sharing in the event of a loss. There have been many horror stories involving guests causing thousands of dollars worth of damage leaving the homeowner to foot the bill.
Available options through Servo Insurance Brokers
As of February 1st 2017 Aviva Canada recently launched their Home Sharing Insurance program, the Short Term Rental Endorsement, which covers homeowners for the following:
- liability arising out of the short-term rental
- loss or damage to buildings and personal property
- intentional acts, criminal acts, or failure to act by a guest
- loss or damage to a guest’s property up to $1,500
- fair rental value (loss of rental income)
They have 4 coverage options homeowners can choose from, depending on their circumstances:
- Option 1: Rent your entire home for up to 90 days.
- Option 2: Rent your entire home for up to 180 days.
- Option 3: Rent a portion of your home (eg a room, basement) to multiple short-term guests year-round.
- Option 4: Rent your income property to short-term guests year-round. This coverage is also available as a standalone policy, even if your primary residence is not insured with Aviva.
Options 1-3 are available for homeowners, condo owners, and seasonal/secondary home and condo owners.
Option 4 is only available for rental income property owners. Condo owners should check with their board to see if these programs are accepted.
If home sharing is something you are considering then speak with your insurance broker to find out if you qualify to add the Short Term Rental Endorsement to your policy. Your home is one of your biggest investments so it is wise to protect it as best possible.