By: Luke Jones, Published on April 25, 2018 06:35 PM, Last Update on April 25, 2018 03:37 PM
Insurance for the sharing market is complicated. In the City of Vancouver, short term rentals like Airbnb are allowed, with residents able to apply for a business license from April 19. Vancouver City Council first approved the new short-term rental regulations last year, allowing people to rent properties for less than 30 days.
Speaking a Thursday quiz event, the city confirmed the regulations are for principal residences, defined as one which “you live more than 180 days of the year and receive mail, including bills, identification, taxes and insurance.”
Kaye Krishna, Vancouver’s general manager of development, buildings and licensing spoke to Canadian Underwriter and discussed the insurance ramifications. Specifically, a question raised by the regulations has been whether short-term tenants will need to have tenants insurance.
“As with similar business licence requirements, the City of Vancouver does not require short-term rental operators to obtain insurance,” Krishna said. “Individual operators are encouraged to discuss their business with their insurance provider and ensure they are adequately covered for risks associated with the operation of their business. Short-term rental operator business licence applicants must declare that they understand that costs and damages associated with their business are their responsibility.”
However, residents who are renting their properties should ensure they are properly covered as they will be on the hook for costs and damages.
“We advise operators that they are responsible for costs and damages resulting from their short-term rental and we recommend that they ensure they have adequate insurance coverage,” she said.