Short-term rentals through platforms like Airbnb and Vrbo have become popular across Canada—but many homeowners don’t realize that standard home insurance often excludes short-term rental activity. One claim without proper coverage can be costly.

Why Short-Term Rentals Change Insurance Risk

Unlike long-term tenants, short-term guests bring:

• Higher turnover and unfamiliar occupants
• Increased risk of property damage or theft
• Greater liability exposure from guest injuries
• Fire and water risks from improper use of appliances

Essential Insurance Coverages

• Short-Term Rental Endorsement or Policy – Explicitly allows Airbnb-style use
• Property Coverage – Protects the building and furnishings
• Liability Insurance – Covers guest injuries and legal claims
• Loss of Income – Replaces booking revenue after a covered loss
• Damage & Vandalism Coverage – Important for frequent guest turnover

Platform-provided “host guarantees” are not insurance and have limits.

Risk Management Tips

• Fully disclose rental activity to your insurer
• Install smart locks, smoke detectors, and leak sensors
• Set clear house rules and occupancy limits

Final Thought

Short-term rentals can be profitable—but only if properly insured. A Canadian broker can help tailor coverage so your Airbnb income doesn’t become a liability. 🇨🇦

Brokers can contact Total Risk Managers to discuss a risk.

This article is general information for insurance brokers. It is not advice, and it is not a quote or an offer of coverage. Policy wording decides what is covered. Coverage is arranged through a licensed insurance broker.