by Lucy Hook
A new report from Airbnb, the online short-term rental site, reveals that more and more everyday people are using the service to rent out their homes in Ontario.
There are now over 15,000 Airbnb hosts in the province, including 8,600 in Toronto, with the vast majority renting out their primary home, and supplementing their income in the process.
The typical host is earning $3,900 annually from their listing – evidence that the sharing economy is alive and well.
But how is the industry reacting to the growing trend for home-sharing?
“There has definitely been a shift in the market when it comes to how the industry and consumers involved in home-sharing need to think about insurance,” Nicole Watts, manager, public affairs at Allstate Insurance told
Insurance Business.
Whilst the government is looking at how legislation and regulations need to be adapted to recognize the evolving sharing economy, insurance needs continue to vary between properties, Watts said.
“There isn’t one specific policy that will work for everyone,” Watts explained. “We encourage anyone that’s considering participating in a home-sharing service to do their research.”
It’s especially important for potential hosts to read all the terms and policies of the property-sharing service, Watts advised, as policies differ widely between home-sharing sites – particularly when it comes to whether the service provides a host-guarantee or host-protection insurance.
From there, brokers and agents should advise hosts on what their current coverage offers and what other options are available to them.
However, it seems that there is not yet a cohesive response from the industry when it comes to policies that cover home-sharing.
Watts said that
Allstate Canada does not yet offer a product designed for home-sharing, but is evaluating the need in light of the changes in the market.
And in many cases, hosts may be in the dark as to the fact that they require additional coverage when renting out their homes.
“Many people may think that personal liability coverage through their home or tenant’s insurance policy is sufficient to cover damage caused by a temporary renter,” Watts said. “Others may rely on the terms and policies of the property sharing service they’re using and they don’t worry about what could happen if their property were to be damaged by a temporary renter.
“However, depending on the circumstances of the damage to your property, neither may provide full coverage to you.”
Whilst Airbnb does provide a Host Guarantee, it’s not clear how this works alongside a client’s home insurance or to what extent it covers hosts.
And with incidents rising – such as the case of
two cousins in Montreal who were robbed by the same Airbnb renter in the space of a weekend – the implications of the sharing economy on insurance policies looks set to continue.
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Airbnb insurance even more essential
