Brokers concerned about the coverage gaps inherent in such “sharing economy” services as Airbnb and Uber may be relieved to know that some provinces are at least one step closer to a solution.
This week, Tourism Vancouver announced that is in discussions with Airbnb to begin taxing transactions similar to how the province taxes hotel rooms. If approved, British Columbia would join Quebec as the second province to attempt taxing and regulating the short-term rental website.
Many brokers welcome this proposal, as it will grant officials access to details about who is using the service and details about their transactions. Equipped with this knowledge, authorities can then ensure that homeowners have adequate insurance coverage needed to rent out their homes.
“This is good for homeowners, because if they do not have the right policies in place, they are in violation and that could have consequences,” said Tom Meier, partner and director of Johnston Meier Insurance Agencies Group in British Columbia.
Meier suggests that these consequences include being denied for fire damages or liability because the homeowner was in violation of their homeowner policies.
Finally, in addition to these benefits, Meier also believes that regulation will make the Airbnb experience safer and more trustworthy.
“Regulation helps protect renters,” he said. “In hotel rooms you have regulations for fire safety and other liability concerns, and I think that depending on the regulations, they can be great for consumers.”
