The growing popularity of VRBO and Airbnb (among other services) has revolutionized the homestay industry. Many Canadians have entered the short-term home rental business as a way to help pay off those hefty mortgages. But, putting your home up on the short-term vacation rental market does not come without risk. Fortunately, new coverage is available to EGBC registrants that can help mitigate these risks.
Take Advantage of New Coverage for EGBC Registrants!
The underwriter for the EGBC Registrant Insurance Program has made coverage available for homeowners who provide Airbnb homestay services.
Update for 2022: Coverage under the EGBC Registrant insurance program now includes 30 days of rentals at no extra charge! This enhanced protection provides coverage for many of the gaps that exist when relying solely on Host Protection Insurance. If you plan to rent your home for longer than 30 days, please consult your broker to explore additional coverage options.
While some coverage is provided for hosts directly through Airbnb, additional coverage is often required to provide comprehensive protection. Coverage will vary via service provider and may change over time, so be vigilant in researching what is and what is not covered. Some potential gaps include coverage for shared areas of the home and liability that is incurred before or after the defined period of stay – even by a few hours.
It is also important to understand if coverage of damaged or stolen property is being provided based on Actual Cash Value or Replacement Cost. For example, will you receive the cash value of your 5-year-old television (purchase price less depreciation) or an amount that will allow you to replace it with a similar style NEW television?
Research the coverage provided by your homestay rental service provider, and then fill any gaps with a comprehensive insurance product designed to ensure those extra dollars you earn stay where they belong – in your pocket.
Contact our team of knowledgeable insurance advisors today with any of your home insurance questions. We are here to help.
P.S. Be sure to review these 3 great tips for protecting your vacation rental. Wishing you a safe and enjoyable summer!