Do You Need Short-Term Rental Home Insurance in Canada?

Short-term rentals have increased over the years, especially with the increasing popularity of platforms such as Airbnb. Canada saw 107,266 short-term rentals that could serve as long-term homes in 2023. Your standard home or tenant policy won’t cover paid guest stays. Short-term rental insurance for renters and owners exists precisely because regular policies exclude business activity.

This article breaks down what short-term rental insurance for renters actually covers, explains what property owners need, shows you cost factors across Canadian provinces, and flags the common mistakes that leave hosts financially exposed.

What Is Short-Term Rental Home Insurance?

Your standard home policy assumes you or your family lives there full-time. Typical policies cover property and liability only for named insureds—not tenants—and failing to disclose occupancy changes can void coverage entirely. Short-term home insurance covers properties rented to paying guests for less than 28 consecutive days. 

Short-term house insurance differs from long-term landlord coverage because of turnover risk. As guests would book for days or weeks, and not months, they don’t know your property and may cause accidental damage or get hurt on unfamiliar premises. Insurers price this exposure separately.

Standard policies often have business activity exclusions. Running an Airbnb counts as business use. You need a policy or endorsement designed for short stays.

Short-Term Rental Insurance for Renters: What’s Covered?

Tenants who rent apartments or houses short-term face different coverage needs than property owners. Short-term renters’ insurance protects your belongings and liability when you book temporary accommodation. 

Personal Belongings and Liability Protection

Your contents coverage protects items you bring into a short-term rental. Laptops, clothes, cameras, and jewellery are covered if stolen or damaged during your stay. Liability protection covers you if you accidentally cause damage to the rental property or injure someone while staying there.

Short-term renters’ insurance kicks in when hosts file damage claims against you. It also covers additional living expenses if the rental becomes uninhabitable mid-stay due to fire or burst pipes. You’re protected while the host fixes the problem.

Damage to the Rental Property

Most short-term rental platforms offer damage protection, but that’s not insurance. Airbnb’s program is explicitly not an insurance policy. You’re responsible for proving you didn’t cause the damage. Your policy defends you if a host exaggerates claims or tries to charge you for pre-existing damage.

Why Standard Renters Insurance May Not Apply

Regular tenant policies exclude commercial activities and may exclude subletting. When you book a short-term rental through Airbnb or other platforms, you’re not technically subletting. You’re a paying guest. If you’re the leaseholder subletting your apartment short-term, your policy likely won’t cover it.

How Much Does Short-Term Rental Insurance Cost in Canada?

Home insurance rates across Canada rose 5.28% in 2025. Short-term rental coverage costs more than standard home insurance because insurers see a higher risk.