Brokers called on to keep an eye on the short-term rental insurance market

More short-term rental landlords need to be made aware of the risks they face, MGA says
Brokers called on to keep an eye on the short-term rental insurance market
PROPERTY
By Lyle Adriano
Mar 29, 2022

Short-term rentals continue to be a popular service, and CHES Special Risk has advised brokers to pay special attention to this growing line of business.

Online service rentals such as Airbnb allow hosts/landlords to generate additional income on the side, by renting out their properties to students, travellers, and those looking for a temporary place to stay. Hosts/landlords, however, may be unaware of the unique exposures of short-term rentals, and that their regular homeowners’ or condo insurance policy will not cover commercial use.

Explore the policies offered by the best condo insurance providers in Canada in this article.

Brokers can address this coverage gap with the help of CHES Special Risk; the managing general agent said in a release that it has expertise in designing specialist insurance to serve the needs of evolving business landscapes.

According to CHES, its short-term rental insurance features liability limits up to $5,000,000. It features a named perils form with various limitations and exclusions, and can cover for loss of rental income. It is also a flexible product, as end clients can choose to purchase building owners and/or tenant contents only, and they can also secure insurance for multiple properties and/or multi-room units in one policy. The coverage underwritten by the MGA can cover international students, as well.

In addition to the short-term rental offering, CHES said that it can also offer a comprehensive buildings and contents package, which includes fixtures and fittings, liability, loss of rental income coverage, as well as support with criminal record and credit referencing check services.

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