Are you going on vacation for a few weeks and want to make the most of your stay by listing your home on Airbnb with the aim of renting it out while you’re away? Assurances Multi-Risques would like to provide you with information about short-term rentals and some home insurance tips related to renting your home on Airbnb.
Renting out your home on Airbnb can be risky if you fail to contact your insurance broker or agent. In such a situation, your home insurer could refuse to compensate you in the event of a claim if they discover that you are renting out your home on a short-term basis or through Airbnb.
Why is it better to contact your insurance broker or agent?
Il est fortement recommandé de contacter votre courtier ou votre professionnel en assurance si vous louez votre résidence à court terme, car sachez que les activités professionnelles comme la location font généralement parties des exclusions générales de votre contrat d’assurance habitation. De grâce, n’oubliez pas volontairement d’aviser votre assureur dans le but de faire quelques économies sur votre prime d’assurance!
In the event of a claim, the insurance company may refuse to pay the claim. Your home insurer may also refuse to insure you in the future. In such a case, you will have to find a new insurer, one that specializes in short-term rentals or that agrees to insure rentals with Airbnb. Opt instead for the worry-free solution, where you will have to pay a small insurance surcharge to avoid losing one of your biggest assets, your house or condo.
About Airbnb insurance
Some people believe that it is not necessary to notify their home insurer since Airbnb has insurance. Airbnb has Host Guarantee, which is supplemental insurance. Although it can provide compensation, it does not cover everything that is necessary for the owner of a home who rents out their residence on a short-term basis.
Supplementary insurance does not cover replacement value, but actual (depreciated) value. Therefore, you could incur a financial loss if your insurer is not notified of the short-term rental of your home. In addition, Airbnb’s Host Guarantee specifies that the insurance applies to the tenant who caused the damage. However, if a fire breaks out due to an electrical fault or you experience a sewer backup, you should be compensated by your home insurer.
It is therefore, among other reasons, to avoid claims issues that you must declare the short-term rental of your residence. It is also important to note that Airbnb’s supplemental insurance does not cover your civil liability.
Some practical tips when renting out your home on Airbnb
- Store your valuables in a safe or secure location.
- Be selective with your tenants. Conduct interviews to get the full picture and, if necessary, perform background checks such as criminal record checks.
- Ask a neighbor to discreetly keep an eye on your home and collect your mail. That way, there will always be someone watching over your home.
- Provide your landlord with the contact details of a responsible person (your neighbor, for example) in case of damage.
En terminant, nous vous conseillons de contacter votre assureur habitation si vous comptez louer votre résidence via une plateforme Web telle que Airbnb. Un simple appel à votre courtier d’assurance pourrait vous éviter bien des problèmes et des craintes et par le fait même vous offrir un séjour à l’extérieur beaucoup plus agréable!