STR insurance in Ontario: what your home policy actually covers (and doesn't)

Your standard home insurance policy almost certainly excludes short-term rental activity. Here's what to ask for, what it costs, and what the platforms' "host protection" really covers.

The most common insurance mistake Ontario STR hosts make: assuming their existing home policy covers Airbnb stays because "it''s still my house." It almost never does. Standard Ontario homeowner policies exclude commercial use of the property, which includes paid short-term rentals.

What your standard home policy excludes

Read your policy''s "exclusions" section. You will find some version of:

"Business or commercial activity conducted on the premises."
"Property rented or held for rent for periods of less than 30 consecutive days."
"Guests, paying or otherwise, beyond [N] persons or [N] days per year."

If a guest slips on your stairs, your home policy''s liability section will deny the claim. If a guest starts a kitchen fire, your property section may pay out and then subrogate against you for non-disclosure.

What Airbnb''s AirCover actually covers

AirCover (and Vrbo''s Liability Insurance) provides up to USD $1M liability coverage and up to USD $3M for damage. But:

It''s secondary to your own policy. They pay only after your insurer refuses (and your insurer will refuse if you have no STR endorsement, plus they''ll cancel your policy when they find out).
It only applies to bookings on that platform. Direct bookings, off-platform stays, and bookings through other channels are not covered.
There are significant exclusions: damage to the host''s vehicle, damage from pets, mould, and any damage during a stay that doesn''t go through the platform''s payment system.

You cannot rely on AirCover as your only coverage. You need real insurance.

What to ask for from a broker

A proper Ontario STR policy includes:

$2M liability minimum (some municipalities require this in the bylaw — Toronto and Ottawa both require $2M).
Building and contents coverage with no short-term rental exclusion.
Loss-of-rent coverage if a covered claim forces the property offline.
Coverage for theft and malicious damage by guests.
Coverage for "ordinance or law" — pays the cost of bringing the building up to current code if it has to be rebuilt after a covered loss.

What it costs

Roughly 30–60% more than a comparable owner-occupied policy. A $1,800/year policy becomes $2,400–$2,900/year. Cottage policies (seasonal, water access, freeze risk) run higher — $3,500–$5,500 is normal for a fully-insured STR cottage.

Ontario brokers that actually write STR policies

The shortlist: Square One, Aviva (through select brokers), Intact (case-by-case), Northbridge, and specialty MGAs like CHES. Many big-name insurers will quietly cancel you if you mention "Airbnb" on the application — the brokers who actually want the business will say so.

What to keep on file

Copy of the policy declaration page in your guest welcome book (some municipalities ask for proof at inspection).
A separate liability waiver in your guest welcome packet — does NOT replace insurance but documents that you''ve set expectations.
Photos of every room dated within 30 days of each guest stay. If a guest damages something, undated photos are nearly useless in a claim.

The disclosure rule

If you have a claim and didn''t disclose STR use, your insurer can deny the claim AND retroactively void your policy back to the day you started renting. That includes any unrelated claims you made in between. Disclose at the next renewal; don''t hide it and hope.