Insurance Cancellation

[Jeffrey5]

I recently experienced a cancellation of my policy due to being a bnb. I was in essence told ABB's insurnace is rubbish and not worth even mentioning. In speaking with my broker, had something happened during a stay or any claim they could have denied coverage. I said what are other people getting then.  He said he wasn't sure since an initial search hasn't turned up much info on Abnb other than most people in Canada at least are not insured properly  even though they think they are, many may be in contravention of their policies. I think people, hosts, are just flying by the seats of their pants hoping ABNB will cover them.  Insurance co can't seem to get their hands on this policy to actually see what is covered and what is not.

I have yet to get new insurance and if you are with someone in Canada please let me know who they are and that they have been given full disclosure and know what they are really iunsuring.

Jeffrey

[Robin4]

@Jeffrey5 Hi Jeffrey I could go into this again but it is something that comes up reasonably often. I think you will get more information by just reading through this Thread. I have had similar coversations with other hosts in Canada and I am sure there are ways around this for you.

https://community.airbnb.com/t5/General-Hosting/House-insurance/m-p/21530#M5364

Cheers.....Rob

[Kerry-Phil0]

@Robin4

Thanks so much, most helpful. I just took out a policy with LTM

[Robin4]

@Kerry-Phil0....Hi there Kerry, That's great. this is the beauty of a forum site...you learn all these really important things that you would otherwise be totally unaware of. Now every time you host someone you will not have to worry that things may go off the rails.

Kerry, I am so pleased I was able to assist....cheers....Rob

[Kerry-Phil0]

@Robin

Yes exactly and it's so cheap too! I just assumed the host insurance would be fine so am very glad I checked.

Thanks again!

[Erica3]

Interesting, because I live in Canada (Toronto) and had lenghty discussions with my agent and their adjustor (through the agent) as to what I was doing with AB and I was insured without issue.  The ONLY thing I was told was 'no hotplates' I did find I got more answers when I found an acctual agent, vs. the call centers (who were just checking off boxes).  It was my understanding before speaking with them, that homeowners insurance already covers 'boarders' to some degree - and I confirmed it.  Not sure how much my set-up factors into it - but I still use the space for friends and family (first and foremost) so it is really just an extra room and living space, not a completely seperate unit.  I also don't do longterm, mainly because I need access to my laundry room. I am with RBC.  

Hope that helps, maybe it's time for a new broker 🙂

[Erica3]

I should note: 'I was insured without issue' - I shopped my insurance last year and was in the process of finishing the basement renovation for AB and was proactive in making sure I would not need to move again.  Most conversations with the call centers ended re: my auto insurance - they couldn't seem to get around my loosing my license (for forgetting to renew my plates, and some how missing the court date ... ooops!) .. they were immediately classifying me as a dangerous driver and hiking the rates because they checked off the box 'have you ever had your license suspended' .. and me being 100% honest I would of course say 'yes'.

I did take a look at your listing(s) I assume since you have multiple that you are not living at all residences - which I believe is the difference.  I am just renting out rooms as far as they are concerned, not entire rental properties - which requires business insurance to the best of my knowledge. 

[Jeffrey5]

It isn't the fact I have multiple units it is only the bnb part. I have been insured with economical for more than 20 years and with a good claims history. My Broker is the best I have ever had and is thorough. I know because of difficulties on previous claims and he actually quotes my policy line and verse.  I believe him and suspect others may feel they are insured but will find out differently on a claim.  I would get your assurances in writing, not just a phone call. If your broker does the letter that is okay since if there is an issue and the phone calls are denied, as in never happened, then you will be covered under the brokers insurance.  I have been in the landlord business almost 40 years and insurance is trickey at the best of times. Few consumers understand it. My broker has been researching the issue and feels he can get me insurance but not one company pops up as saying they do ABB.  I do know in no unceratin terms Economical doesn't.  Which company holds your policy?

[Peter0]

I can't be specific but I think the insurance area is one with many potential holes in it.  Ideally, one would have a policy covering any unforeseen eventuality - theft, damage, fire and so on.  But Airbnb offers a bit of damage protection and a bit of liability protection I think.  For myself, I have buildings insurance which covers fire OK.  I cancelled my contents insurance when I started Airbnb because I doubted the theft risk it was there for would be worth anything when I couldn't prove that the stolen items hadn't been taken by someone with a key courtesy of an Airbnb visit.  My main worry is third party liability which I am investigating to see if I can get a specific policy created to cover, for instance, the risk of a guest dropping something out of a window onto a pedestrian in the street below (to take one not too far-fetched example).

[Erica3]

Hi Jeff - as I mentioned my homeowners insurance is with RBC - but since I am just renting rooms, and I am here at all times it's not the same as business insurance which would cover a permanent rental space. I did a lot of research (with professional guidance) prior to renting this way (and business insurance was an implicating factor), rather than putting in a full apartment with annual leases etc. I do have all of this in writing via my policy. So it's possible .. I just don't know that your properties meet the requirements. Good luck!

[Erica3]

Here's some more information:

"Home insurance coverage often includes this type of insurance, but certain insurers suggest supplementary civil liability coverage in cases where the policyholder is away from home"

http://blog.belairdirect.com/airbnb-rental-home-insurance/

There's a lot of marketing fluff in this article - but the bottom line is: homeowners insurance does provide coverage provided you are there. Since I only rent for a few days at a time (I try not to exceed 50% a month total for my own convenience), I fall into this casual territory.

[Robin4]

@Erica3 Hi Erica, I am very interested in the information you have provided re your hosting insurance. I missed this when you first posted it but I would like to know further details. The only company that I have been aware of operating in the Canadian market is Square One Insurance who operate out of Vancouver but they only cover as far east as Ontario at this stage of the piece. Here is the link....

https://www.squareoneinsurance.ca/

I am trying to gain as much reliable information as I can regarding hosting insurance options in Nth America. It's basically a relatively new market and in a few years will become much more widespread with the size of the hosting industry. But it appears many hosts just hope for the best at this stage or put their faith in the Host Protection Scheme which is fraught with peril.

Thanks for what you have provided Erica and I hope you can fill in a few more blanks....cheers.....Rob

[Minga0]

Hello,

I am having same problem.  I rent a house actually and my landlord is telling me we won't be able to rent through Air BnB anymore as their insurance company has threatened to drop them if I do continue Air BnB hosting.  In researching other options i came across something called Square One Insurance.  It's Canadian.  It's online.  It sounds like a response to the needs for more flexible home insurance policies such as in an Air BnB situation.  Google it.  I can't get in on it as they have not expanded to Nova Scotia yet, but they are in other parts of Canada .  I'd be interested to hear from othe Canadian Air Bnb hosts if they have had any experience with Square One.

If Air BnB doesn't respond to insurance issues around hosting it will be very disappointing to me as this has been a god send for my family in helping to pay the bills.  

How are other Nova Scotians dealing with insurance as Air BnB hosts?

[Robin4]

@Minga0 Thank you so much for posting that infomation. I have compiled a list of Australian insurers who support hosting platforms and I would love hosts in other countries to do the same.

If you gather any more information Minga would you be kind enough to post for the benefit of Canadian hosts...cheers....Rob

[Minga0]

Yes, I will certainly post what I find out through my mess I'm in right now....and i'm fully booked for July and August!)-:  

You are lucky and smart in Australia!(-: