Owning a rental property or Airbnb in Ontario — especially in high-demand areas like Mississauga and Toronto — can be a smart investment. But what many property owners overlook is a major hidden risk: insurance gaps. The reality? Your standard home insurance policy likely does not protect you against the specific risks of renting on platforms like Airbnb or VRBO.
Understanding the Gap Between Home and Rental Insurance
Traditional home insurance in Ontario is designed for owner-occupied dwellings — not short-term rentals. If you list your condo or basement suite on Airbnb, you might unintentionally void parts of your policy. Why? Because insurers see short-term rentals as a business activity, not a personal one.
That’s where rental property insurance or Airbnb insurance comes in. These policies offer protection for scenarios that standard home insurance doesn’t, such as:
Guest-related property damage or theft.
Liability claims if a guest is injured on your property.
Loss of income due to property damage or cancellations.
Without this coverage, even a single incident could cost you thousands — and possibly put your investment at risk.
How Specialized Short-Term Rental Insurance Protects You
Ontario insurers now offer specific short-term rental coverage extensions, but not all policies are created equal. As a local Mississauga insurance broker, I always encourage landlords to look beyond basic protection and ask:
“Would my coverage stand up if a guest starts a fire, damages the unit, or files a lawsuit?”
A tailored Airbnb insurance policy adds extra layers of protection, including:
Enhanced liability limits (often recommended at $2 million or more).
Coverage for both short-term and long-term rental guests.
Optional loss-of-income protection if your property becomes unusable.
Working with a local broker ensures you’re getting coverage specific to regulations and risks in Mississauga and Toronto — including condo board restrictions, municipal bylaws, and Ontario’s legal environment.
Frequently Asked Questions About Airbnb & Rental Insurance in Ontario
1. Does Airbnb’s Host Guarantee replace my insurance?
No. The Host Guarantee is not an insurance policy and has strict limitations. It should never replace your personal coverage.
2. I rent my Mississauga condo occasionally. Do I need special insurance?
Yes. Even if you rent a few weekends a year, most insurers require disclosure and separate coverage for short-term rentals.
3. Can my tenant sublet on Airbnb without my knowledge?
This happens often in Toronto. Always include a no-subletting clause in your lease and review your policy terms with a broker.
Why Work With a Local Insurance Expert
Choosing a local broker in Mississauga or Toronto means you get personalized advice and access to multiple insurers to compare coverage and pricing. Brokers like us at Katherine Le Insurance Broker are licensed experts who help landlords protect what they’ve worked hard for — without overpaying for unnecessary extras.