“This year will likely bring an increase in short-term rentals as Toronto prepares to host the 2015 Pan Am and Parapan Am games in July and August,” says Donna Ince, senior vice president, personal insurance, RSA Canada. “The Pan Am and Parapan Am games will pose some unique coverage challenges for those looking to do short-term rentals.”
The Pan Am games begin on July 10, so if you haven’t already, Ince recommends that now is a great time to open a discussion on short-term rental coverages.
“As game time approaches, now is a good time to remind clients of what coverages may or may not apply when it comes to short-term rentals, as there could be gaps in coverage or variations between products and providers,” says Ince. “Brokers should also anticipate calls from their clients who want to review their insurance policies.”
When opening this discussion with the client, it is a good time to point out that many insurers short-term rental coverages are not intended for on-going or regular business/commercial pursuit – such as Airbnb, or other Bed & Breakfast (B&B) exposures.
“Most home insurance policies anticipate that family or friends will use your house from time to time. However, when renting your property, it’s important to check your policy with your home insurance representative,” says Ralph Palumbo, vice-president, Ontario, IBC.
It’s also a good time to remind condo and homeowners who rent their property in the traditional sense, to check online to see that their properties are not being rented out by their tenants.
“I would recommend that brokers remind their clients that their properties can be rented out without their knowledge,” says Ince. “This is a good time to suggest to your clients that they search their neighbourhood on sites like AirBNB and HomeAway to ensure that they are not up for rent.”
The games are fast approaching, so be sure to talk to your clients about short-term rentals today, urges Ince.
The buzz of the Pan Am Games is rising, and so too is interest in travelers looking for accommodation while visiting Toronto, Ont.