Thinking of renting out your home? Read this first.

The idea of renting your home for extra cash isn't new – but, thanks to the rise in home-sharing services, it's easier and more popular than ever. However, there are questions that come with being a host, like whether your home insurance will cover unexpected damages caused by a guest which require repairs. Learn more about home insurance and home sharing in the article below.

Does my home insurance cover me if I rent out my home for short term stays?

The best way to confirm whether your home insurance covers short term rentals is to contact your insurance company. Keep in mind that having unsupervised people in your residence is considered an extra risk. Therefore, after confirming your coverage, you may also want to consider the following before renting your home for short term stays:

  • Set aside funds for repairs.  Without adequate insurance coverage, you may be expected to take financial responsibility for damages caused by your guests and potentially accept liability for injuries or damages that happen under your roof.
  • Consider commercial insurance. If you're planning on renting your home for an extended period of time, you may need a commercial insurance policy to ensure you're fully protected.
  • Check your home sharing service. If you're using a home-sharing service, it may provide some level of insurance protection for hosts. Do some research ahead of time to ensure you know what will and won't be covered by your home sharing company.
  • Look for supplementary insurance options. Some home sharing companies offer their own extra coverage to offset areas that their standard coverage may not include.

If you're renting out your home, a TD Insurance advisor can help you determine what the coverage you need. Contact us before listing your home for rent.

What are some risks of home-sharing?

Home sharing may appear to be a simple way to supplement your income. But, as a host, it's important to be mindful of the extra risks and responsibilities you're taking on when it comes to the safety of your guests and your property.

Renting out your home and potentially having multiple guests staying on your property unsupervised increases the risk of accidents – and if a guest is injured while staying at your home, you could end up being responsible for their medical expenses and for damages. In addition, should home-share guests cause damage to your property, a traditional home insurance policy may not cover repairs, meaning you'd have to pay out of pocket to fix any guest-inflicted damages.

How can I protect myself and my belongings as a home-share host?

Insurance is just one of the tools you can use to feel secure when renting out your home. As a responsible home-share host, you may want to consider the following to reduce the amount of risk that comes with short-term home rentals.

  • Establish rules for your home and communicate them clearly with your guests so they understand your expectations for your space. If you want to keep your home pet-free or smoke-free, informing your guests up front can help you avoid future frustration.
  • Do your research. If you’re renting independently, review the short-term rental guidelines for your area. If you’re using an app or a home-share service, make sure you’re comfortable with the company and their policies.    
  • Take care of home hazards. Maintaining your home can help reduce the chance of injury on your property. Some home features, like pools and trampolines, are riskier than others so proper maintenance and pre-established rules can help make sure everyone stays safe.
  • Store away valuables. Lock away valuables and sentimental items to help ensure their safety and minimize the risk of theft or damage while guests are renting your home. 
  • Regularly check your smoke detectors, carbon monoxide detectors, and fire extinguishers to ensure they're in good working order. This will help you to create a secure environment and keep your property – and your guests – safe.
  • Consider collecting a safety deposit for guests to cover potential damages to your property. This way, you'll have a financial buffer in case of any unforeseen incidents or damages during their stay.

I'm thinking about renting out my home. What should I do next?

Contact us if you're a TD Insurance customer and you're considering renting out your home. We can help you determine the home insurance coverage you need to ensure you feel secure when renting your property.

Shopping for home insurance? Get a quote online.

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The content on this page is for general information purposes only and does not constitute legal advice. Coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.

In the case of conflict between the content on this page and your policy wordings, your policy wordings shall take precedence. Please speak to an Advisor or consult your policy wordings for further details.