If you are planning to rent out your house or apartment on Airbnb, it’s important to understand that Airbnb does not automatically provide full insurance coverage for guests who stay at your place.
This guide walks you through the ins and outs of Airbnb Insurance Coverage in Canada — what’s covered, what isn’t, how much it costs, and how to choose the right policy to protect yourself and your property.
Homeowners Insurance
Your homeowners’ insurance may protect your guests if they’re injured at your home. However, if you rent out a room or your entire property, your standard policy may not apply to short-term guests or their possessions.
Some insurers allow you to add renters as additional insureds, but you should confirm this with your insurance agent first.
Depending on your province and the nature of your rental, an umbrella policy might also be worth considering. Umbrella coverage provides extra protection when your primary policy limits run out — typically covering injuries or legal issues up to $1 million–$5 million.
Renter’s Insurance
If you’re renting a home or apartment (especially with roommates), each of you should have individual renter’s insurance coverage.
Generally, renter’s insurance covers personal belongings in case they’re stolen or damaged by fire or another covered disaster. Some policies also include liability protection if someone is injured at your rental and decides to sue.
However, coverage varies widely between companies, so it’s crucial to research your options before choosing a policy.
Tip: If you’re renting for fewer than 30 days, renter’s insurance alone might not be enough. You may need to purchase additional Airbnb Insurance Coverage or opt into Airbnb’s own protection program.
Some hosts even require business insurance or specific Airbnb policies to ensure comprehensive coverage. Bundling renter’s and homeowner’s policies can also offer discounts and stronger protection.
Airbnb’s Own Insurance Options for Hosts and Guests
Airbnb offers several types of insurance options to both hosts and guests in Canada, including:
Host Protection Insurance
Protects hosts against third-party claims of physical harm or property damage caused by guests.
- Provided at no extra cost
- Covers up to $1 million per occurrence
Host Guarantee
Covers damages to the host’s property caused by guests.
- Up to $1 million in coverage
- Does not include personal liability or bodily injury
Guest Injury Protection
Optional coverage available to hosts for an additional fee.
- Covers medical expenses for guest injuries
- Up to $1 million per occurrence
Travel Insurance for Guests
Airbnb offers optional travel insurance to protect guests against cancellations, delays, or medical emergencies during their stay.
Additional Insurance
Because Airbnb’s coverage has limitations and exclusions, many hosts supplement it with:
- Homeowners insurance
- Renter’s insurance
- Specialized short-term rental policies
Airbnb Host Protection Insurance Policy (Canada)
Many Airbnb hosts are unaware that their home insurance policy does not cover short-term rentals. With the rapid growth of platforms like Airbnb, this has become a major concern.
Even if a host has other policies — such as personal property or liability coverage — these may not cover damages caused by paying guests.
To address this, Airbnb Insurance Coverage in Canada has sold over $100 million worth of protection to vacation rental properties. Yet, understanding the limitations of these coverages remains crucial before listing your property.
Always check with your insurance company to confirm if your existing policy covers short-term rentals. If it doesn’t, you may need to switch to or add coverage that explicitly does.
How to Choose the Right Airbnb Insurance in Canada
Choosing the correct Airbnb insurance policy depends on your hosting style and property type. Follow these steps:
- ✅ Review your current policy: Ensure your homeowner’s or renter’s insurance includes short-term rentals. Most do not unless specifically endorsed.
- ✅ Look for specific coverage: Select a policy that covers third-party liability, guest accidents, and property damage. If you store guest data or payment info, consider cyber/privacy extensions.
- ✅ Understand limits: Pay attention to per-occurrence, aggregate, and sub-limits for contents or loss of income.
- ✅ Compare policy types: Check whether coverage is offered as an extension to your existing policy or a stand-alone short-term rental plan.
- ✅ Ask about claims process: Understand waiting periods, documentation needs, and retroactive dates.
💡 For a basic comparison and definitions of what various policies include, check out Summit Insurance — understanding the small print before you list can save you significant trouble and stress later.
Practical Tips to Reduce Your Insurance Risk
Reducing risk not only minimizes potential claims but also helps enhance your insurability and potentially lower premiums.
- 🏠 Maintain an updated inventory of valuable assets — photograph and date them before guests arrive.
- 🔒 Keep safety measures active: smoke/CO detectors, secure locks, clear escape paths, and regular maintenance logs.
- 📋 Use house rules and check-in/out procedures to prevent misuse.
- 💬 Screen guests carefully using Airbnb’s review and messaging tools.
- 💰 Use a small refundable security deposit for frequent hosting.
- 📸 Document incidents: keep photos, police, or medical reports when needed — detailed records speed up claims and strengthen your case.
Final Thoughts: Protect Yourself Before You Host
Insurance isn’t legally required to rent your home on Airbnb, but it’s essential for peace of mind. Whether it’s Airbnb’s own host protection, a third-party short-term rental policy, or an extended homeowner’s plan, having the right coverage ensures you’re prepared for unexpected events.
Before you list, always read policy fine print, confirm coverage limits, and consult a licensed insurance professional for tailored advice.
