Renting out your property on a website like Airbnb? Tell your home insurer

There are more than 100,000 Canadian homes listed on Airbnb. And a large chunk of those aren’t telling their insurers about it.

Not a good idea says insurance provider Square One. That’s because if you don’t inform your insurer about listing your space, they could refuse to pay out any damages that happen to your home while you’re renting it out.

“It's important to keep in mind that all home insurance policies have terms, conditions, and exclusions,” says Daniel Mirkovic, president at Square One.

When it comes to home-sharing, insurers view the people staying in your home as boarders, roomers or tenants. Those are not covered under standard home insurance policies — you’re going to need a rental property insurance policy for full coverage.

For instance, if you find something stolen in your home after renting it out on Airbnb, you can’t file a claim to your insurer under most standard home insurance policies. Normally, a stolen television or laptop will be covered under your insurance. Not so if you’re renting the place out.

There are also other complications that can arise if you’re not properly covered.

“The liability coverage included in your home insurance policy does not extend to the guests,” Square One says in its release. “That means if the guests accidentally set fire to your neighbor's home while using your barbecue, your neighbor will need to sue the guests and attempt to recover from the guests' home insurance.”

Other areas that aren’t covered include intentional damage (for instance, if someone punches a hole in your wall) or any damage or loss to your guests’ items.

Square One recommends taking a few steps to protect yourself. First, tell your insurer, so you can get the right coverage. Second, make sure your guests have their own home insurance policies and try to get copies so you know where to call if something goes wrong.

Finally, check with your home-sharing service to see if they have their own “host guarantee.” That could protect you against certain liabilities.