VANCOUVER — There are signs it might be harder to get and keep insurance coverage for short-term rentals in Metro Vancouver, a market that has exploded in recent years but is being curbed with new regulations in some municipalities.
According to several brokers, Wawanesa, a major insurance company that had been offering coverage for Airbnb-style listings, stopped doing so as of early July.
Some brokers are suggesting clients seek coverage for short-term rentals by going to “specialty market” insurers, which they describe as providing insurance that covers less while costing more.
Winnipeg-based Wawanesa’s website still has a description advertising short-term rental insurance. Its spokesperson David Hultin responded to a Postmedia New query, but did not answer questions or provide a statement about any changes to its offering of short-term rental insurance, which was launched around spring 2017.
Some brokers said it was worth trying to approach the company on a “case by case basis” if, for example, a homeowner with Wawanesa insurance on a principal residence was seeking short-term rental insurance for a laneway unit on the same property. Such situations are seen as lower risk, and might be still be considered by the company.
There are other companies, such as Aviva Canada Insurance and Toronto-based Intact Insurance, that offer short-term rental policies. Aviva calls it “home-sharing insurance” and one broker explained it is limited to short-term rentals of a homeowner’s principal residence.
Intact said in a statement “we are seeing more consumers wanting to rent out their homes for short terms through a home- rental network. With Intact Insurance, customers can be covered for various short-term renting scenarios at an additional cost. We will assess each case individually.”
Insurance is cropping up as a problem as short-term rental listings fluctuate in Vancouver. Last week, the city said its new regulations requiring properties that rent for less than 30 days to have a city licence by Sept. 1 meant that 2,400 listings for short-term rentals were de-activated.
In April 2018, there were 7,100 active Airbnb listings across Metro Vancouver, which earned approximately $14 million.
Insurance brokers say that not following municipal regulations for short-term rentals, such as licensing requirements, would immediately invalidate any insurance coverage. Standard house insurance does not cover a property if it’s being used for short-term rentals.
