Many educators cannot wait for summer. It's when we pack our bags and hit the road, travelling to wherever our hearts desire. With the popularity of Airbnb and home sharing on the rise, you might be considering taking advantage of one of these services or perhaps renting out your own home while you're away.
Up until recently, home sharing has been a bit of a grey area for home insurance. We're pleased to announce that as of February 1st, 2017, OTIP is offering home-sharing insurance.
What is home-sharing insurance?
Traditional home insurance policies limit or exclude short-term rental activity, which is what home-sharing services like Airbnb fall under. This means that losses or damages that occur when you're renting out your property aren't covered under your home insurance policy, something that more than half of people who rent their homes out like this reported being unaware of in a recent survey.
The gap in coverage inspired the launch of the Short-Term Rental Endorsement (STR), an optional coverage that can be added onto your home insurance to protect your property and your belongings while you're renting.
How it works
The STR policy can be added to an existing home insurance policy or purchased as a standalone policy for rental income property owners. Depending on the nature of your rental, you can choose from the following coverage options:
- STR1 – Protects principal and seasonal/secondary homeowners for rentals of their entire home for up to 90s days, or a portion of their home, such as a single room or a basement, for a full year. This is a great option for educators who are considering renting out their property while they're travelling this summer.
- STR2 – Provides the same coverage as the above except the coverage is valid for up to 180 days.
- STR3 – Allows property owners to rent out their entire property for the whole year. This is the option that can also be purchased as a standalone policy.
Am I eligible?
When you are renting your property out on a short-term basis like this you are considered a host.
Hosts are eligible for home-sharing coverage based on the following criteria:
- You are renting your property, or a portion of your property, for a short time only. This coverage is not intended for long-term rentals or lease situations.
- You rent your residence or a portion of your residence multiple times a year to different individuals
- Your rental is managed through a home rental network like Airbnb, Flipkey, Homeaway, VRBO or an independent professional property management company
The educator advantage
Many hosts consider home-sharing to be an excellent way to generate income on their property, helping them to cover the expenses and to keep their residence occupied while they are away.
With summer around the corner, educators will be happy to know that this coverage can be added at any time. This coverage is offered by some carriers, but not all. Give us a call today at 1-866-523-4111 to learn more and to find out if you are eligible.
This is our way of providing educators like yourself with more options to ensure you're getting the most out of your home insurance.