Ontario’s real estate market is full of unique opportunities. Maybe you’ve turned part of your home into an Airbnb to earn extra income, or you’ve invested in a cottage that doubles as a seasonal rental. Both scenarios can be smart moves, until something unexpected happens.
The big question: Will your home insurance actually cover it?
The answer isn’t always straightforward. Standard home insurance in Ontario often has limitations when it comes to short-term rentals or seasonal properties. That’s why knowing your coverage, and working with the right insurer, matters more than ever.
We’ll break down how Airbnb and short-term rentals are treated under Ontario insurance standards, how seasonal or secondary homes are insured, and what leading Canadian insurers offer in these situations. We’ll also explain how a broker like Levitt Insurance Insurance can make sure your coverage is complete and competitive.
Short-Term Rentals and Home Insurance in Ontario
If you’re using your home for short-term rentals, through platforms like Airbnb or Vrbo, you’re taking on a different type of risk than a standard homeowner. Instead of a long-term tenant or your own family living there, you have a steady flow of guests, each with their own habits and potential for accidents.
Under Ontario’s insurance regulations, most standard home insurance policies exclude or limit coverage for short-term rental activity unless you have a specific endorsement or policy designed for it.
Common risks for short-term rentals include:
- Property damage caused by guests
- Theft of belongings
- Liability if a guest is injured on your property
If you rent out your basement suite on weekends, a short-term rental endorsement with some insurers can protect you against guest-related damage and liability claims, something not typically included in a standard home policy.
What Top Canadian Insurers Offer for Airbnb and Part-Time Rentals
Intact Insurance is one of the home insurance companies in Canada that recognizes the growing demand for short-term rental coverage. For landlords or part-time hosts, they offer:
- Short-term rental endorsements that extend your standard home insurance in Ontario to cover guest stays
- Liability coverage in case a guest is injured on your property
- Options for both primary residences and secondary properties
Conditions may apply. For example, you may need to inform Intact Insurance in advance about:
- The frequency of rentals
- Whether you’re renting a room, a unit, or the entire property
- Whether you live on-site or the property is fully guest-occupied during rentals
Failing to disclose rental activity could void your coverage. This is why working with a broker matters, we ensure your insurer knows exactly how the property is used so you’re fully protected.
Insuring a Secondary Property or Cottage in Ontario
Secondary homes, like cottages, bring their own insurance challenges. They’re often located in rural or waterfront areas, may be used only part of the year, and can sit vacant for extended periods. These factors increase the risk of:
- Water damage from undetected leaks
- Break-ins when no one is home
- Damage from storms or wildlife
Many house insurance companies have specific seasonal property policies with different terms than primary home insurance.
Leading insurers offers tailored coverage for cottages and seasonal properties, including:
- Fire and theft coverage
- Liability coverage for when you or guests are on the property
- Optional coverage for outbuildings like boathouses or sheds
- Add-ons for boats or watercraft stored on the property
Some policies require regular property checks, every few days in winter, for example, to keep coverage valid. Intact Insurance makes these requirements clear, and as your broker, Levitt Insurance ensures you understand and meet them.
Why Bundling Can Be a Smart Move
If you own both a primary residence and a secondary property, you may qualify for a home insurance and car insurance bundle through Intact Insurance or other insurers we work with. Bundling your home and auto insurance policies often comes with:
- Significant premium discounts
- Simplified policy management
- Consistent renewal dates
This is one of the easiest ways to save money while keeping coverage comprehensive.
The Broker Advantage
You could call an insurance company directly, but you’d only get their view of your options. As insurance brokers, at Levitt Insurance we work with multiple house insurance companies to:
- Compare coverage for Airbnb, seasonal homes, and primary residences
- Explain each policy in plain language
- Make sure you’re meeting Ontario’s insurance standards
- Find you competitive rates without cutting corners on protection
Because we work directly with multiple insurers, we know how to position your application so you get the right coverage and the best possible rate.
Questions to Ask Before You Insure a Rental or Cottage
When you talk to a broker or insurer, make sure you ask:
- Does my home insurance in Ontario cover short-term rentals, or do I need an endorsement?
- Are there occupancy requirements for seasonal properties?
- What are the inspection frequency rules during the off-season?
- Can I bundle this with my auto insurance to save money?
- Are there coverage limits for outbuildings or recreational equipment?
These answers will help you avoid surprises if you ever need to file a claim.
Owning an Airbnb, short-term rental, or secondary property in Ontario can be rewarding, but it changes your property insurance needs. Without the right policy, you risk gaps in coverage that could cost you thousands.
Many top insurers offer strong options for both landlords and seasonal homeowners, but the key is knowing exactly which coverage applies to your situation. That’s where Levitt Insurance comes in. We’ll compare policies from multiple house insurance companies, explain your options, and make sure you have full protection at the best possible rate.
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