Renting for short stays changes the occupancy
Receiving paying guests is different from ordinary owner occupancy or a long-term residential lease. Frequency, guest turnover, services provided, property type and whether the owner remains on site can all influence insurer acceptance.
The Insurance Bureau of Canada advises homeowners to disclose rental activity and not assume a standard home policy covers it. Tell your broker before advertising, accepting a booking or switching between personal and rental use.
Platform protection is not the whole insurance plan
A booking platform may advertise host protection, but its terms, exclusions, limits and claims process are separate from the property owner’s policy. It should not be treated as a substitute without comparing both. Direct bookings may fall outside platform arrangements entirely.
Depending on the risk and available insurers, a review may address:
- Damage to the building, contents and furnishings
- Liability arising from guest injury or property damage
- Theft, vandalism and intentional acts, subject to wording
- Lost rental income after an insured loss
- Equipment, pools, hot tubs, docks, watercraft or recreational vehicles
- Cyber or payment exposure for direct-booking operations
Coverage for guest damage, wear and tear and bylaw violations is not automatic.
Local and building rules still apply
Insurance does not authorize a short-term rental. Check municipal licensing and zoning, condo declarations and rules, mortgage or lease conditions, fire-code responsibilities and tax obligations. Requirements differ by property and location, and they can change.
Use written house rules, emergency contacts, smoke and carbon-monoxide alarms, maintenance records, safe exits and a process for reporting damage. If a property manager or cleaner is involved, identify who employs them and what insurance they carry.
Describe the operation completely
Provide the address, construction, occupancy, number of rental nights, platform or booking method, maximum guests, annual revenue, owner presence, amenities, security controls and claims history. For a seasonal property, also review our cottage insurance guide.
Review changes before the next booking
Adding a unit, increasing capacity, installing a hot tub, moving off-platform or hiring staff can change the risk. Contact Westoak to review the arrangement. Coverage and insurer availability depend on the complete facts and policy wording.