Short-Term Rental Insurance in Canada
Renting a primary or secondary home for short stays changes the occupancy and insurance risk. IBC advises property owners to contact their insurer before renting the property and to arrange coverage suited to the rental use.
Rented properties face different risks than owner-occupied homes
IBC says owners planning to rent a primary or secondary property for short or long periods should contact their insurer first. Failing to disclose a rental arrangement can affect coverage, and regular home or seasonal policies can restrict or exclude losses while the property is rented to others.
IBC — Types of home coverage →Why guest stays change the risk
Short-term rentals can create frequent turnover, unfamiliar occupants, key or access-code sharing and higher use of kitchens, balconies, pools or other amenities.
The owner can also face liability allegations from guests and property-damage claims that do not look like ordinary owner-occupied household losses.
Tell the insurer before listing the property
IBC recommends contacting the insurer before renting all or part of a primary or secondary home. The insurer can explain whether an endorsement, dedicated short-term-rental product or different policy is needed.
Keep the occupancy and rental arrangement accurate throughout the policy term, especially if occasional hosting becomes a regular business activity.
Platform protection is not the same as your policy
Home-sharing platforms may advertise host protection, but those programs have their own eligibility rules, exclusions and limits. They should not automatically be treated as a substitute for insurance arranged for the property owner.
Review who pays first, what property is covered, liability conditions and what happens when a claim falls outside the platform program.
Seasonal homes need an extra check
IBC notes that standard home and seasonal policies can restrict or exclude coverage when a property is rented to others. A cottage that is insured for personal seasonal use can therefore need a different arrangement when it begins generating rental income.
Occupancy, winterization, water systems and guest use should be reviewed together rather than treating the rental as only an income change.