The Insurance Bureau of Canada (IBC) is reminding homeowners with short-term rentals in Atlantic Canada to make sure their properties are compliant and appropriately insured. Amanda Dean (pictured), IBC vice president for Ontario and Atlantic, emphasized the need to balance hospitality with today’s realities.
“Your insurance representative will have a host of questions for you when you let them know that you’re putting your home up for rent – and there are a lot of good reasons why,” Dean advised property owners who might be considering the short-term rentals route as a means to cope amid high living costs.
“The risks associated with a short-term rental are different from an owner-occupied home, and understanding the details of your home insurance policy is key to avoiding unpleasant surprises about your coverage.”
Dean urges prospective lessors to review their policies and notify insurance providers before opening their homes to guests. “Always check your policy and inform your insurance provider about your plans,” she said.
The VP pointed out that failing to disclose a change in occupancy can have serious consequences. For example, if a fire occurs and the insurance company is unaware of the rental, the policy might be voided. This could leave the owner without coverage for the property, its contents, and potentially their guests’ belongings.
“To ensure you are covered: contact your insurance company to confirm coverage before listing your short-term rental; inform your insurance representative of the change in how you are using your home or secondary residence; and review our webpage on the different types of property insurance and for tips on lowering your risk when renting out your property,” Dean enumerated.
She also cited the required licensing and registration, depending on location. Costs to consider, meanwhile, include licensing fees, insurance, maintenance and upkeep, damage and liability, and legal compliance.
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