Introduction

Short‑term rental, Airbnb, and B&B risks are insurable when policies are structured for transient occupancy, revenue dependence, and platform/municipal compliance. Summit Commercial Solutions brokers coverage for hosts and operators across Canada (excluding Quebec), aligning insurance with provincial registries, city licensing, condo/strata bylaws, and lender requirements. See related coverages: Commercial Property, Commercial General Liability, Business Interruption, Hotel / Vacation Rental, Landlord, and Claims Support.

Core coverages for STR/Airbnb/B&B operators

• Property (building/contents): fire, water, wind, theft, vandalism—tailored for transient occupancy. For multi‑unit or dedicated STRs, this is written on a commercial or landlord form, not a standard homeowner form (which often excludes business/STR activity).

• Commercial General Liability (CGL): bodily injury and third‑party property damage arising from premises hazards (slips, trips, balcony falls), products/completed operations for breakfasts/amenities, personal/advertising injury.

• Umbrella/excess liability: increases limits to satisfy lender, municipality, or strata/HOA expectations (common targets: CAD 5–10M, based on contract and exposure).

• Equipment breakdown: sudden and accidental failure of HVAC/boilers; can extend to spoilage for breakfast service.

• Cyber/privacy: coverage for guest data, ransomware on smart‑lock/booking systems.

• Business interruption / loss of rental income: replaces lost revenue after an insured physical loss (e.g., fire/water damage), with options for extra expense and civil authority per policy terms. Regulatory shutdowns or lack of bookings are generally not covered; most policies require direct physical loss to trigger income coverage.

Guest theft and intentional acts: what’s standard and what’s not

• Most primary property policies exclude intentional acts by “an insured” and often exclude theft or vandalism by a tenant/guest unless specifically endorsed. Some carriers offer “theft/vandalism by tenant/guest” extensions on landlord or short‑term rental endorsements; terms and sub‑limits vary by insurer.

• Platform protections (e.g., Airbnb AirCover) are not a substitute for insurance. AirCover’s Host Liability Insurance (program summary last updated June 30, 2025) covers host legal liability to others during a stay, but not the host’s own property; its Host Damage Protection is not an insurance policy and has exclusions (including many intentional acts). Hosts with 6+ listings may have AirCover respond excess/after other insurance depending on policy terms.

• Practical placement guidance with Summit:

• Ask for a written endorsement for “theft or vandalism by tenant/guest,” including sub‑limits, exclusions (jewelry/cash), and security conditions (smart locks, ID verification, interior cameras prohibited in private spaces).

• Align platform screening with policy warranties; document guest ID checks and house rules.

Loss of rental income: insured triggers vs. non‑covered scenarios

• Covered (typical): income lost during repairs after a covered peril causing physical damage at the insured location (fire, burst pipe). Optional civil authority coverage may respond when access is prohibited due to nearby insured damage; waiting periods usually apply.

• Not covered (typical): market downturn or empty calendar; municipal/provincial rule changes; pandemics/communicable disease (unless specifically endorsed); loss due to bylaw/ordinance compliance alone. Always confirm policy wording.

Condo/strata/HOA requirements you should expect

• Strata/condo corporations can restrict short‑term accommodation by bylaw even where long‑term rental bans are prohibited (e.g., in B.C., Bill 44 removed rental‑restriction bylaws but allowed bylaws restricting short‑term accommodation). Expect rules on principal residence, minimum nights, guest conduct, key/fob control, and amenity access.

• Many corporations and property managers will require: proof of liability insurance, evidence of compliance with local STR bylaws, emergency contact details, and sometimes listing the corporation as an additional insured. City programs (e.g., Toronto, Calgary, Winnipeg, Edmonton, Ottawa, Saskatoon) may also require license/registration numbers displayed on listings and local taxes remitted.

• Summit can coordinate with your strata/condo manager to evidence insurance, adjust limits, and align endorsements to bylaws and leases.

Registry and licensing snapshot (service area: Canada excluding Quebec)

Note: Always confirm your exact city/municipal requirements, zoning, licensing, and taxes before hosting.

Market notes (updated quarterly)

Updated: Q4 2025 (October 23, 2025)

• British Columbia: Provincial STR Registry live with platform validation. Hosts must display provincial registration numbers and (where required) local business licence numbers on listings; platforms block non‑registered listings (from June 2, 2025) and cancel future bookings (from June 23, 2025).

• Toronto (ON): Short‑term rental operator fee increased to $375 (Jan 1, 2025) and MAT set at 8.5% for June 1, 2025–July 31, 2026; registrations tied to principal residence and stricter inspection/enforcement phases began in 2024–2025.

• Calgary (AB): Bylaw amendments effective April 1, 2025 establish different licence classes for primary vs non‑primary residences, with fees and continued fire safety inspections and advertising requirements.

• Winnipeg (MB): City licensing program continues (effective April 1, 2024) with 6% accommodation tax, licence number display on listings, inspections, and active enforcement.

• Saskatoon (SK): Moratorium on new non‑principal STR properties remains while vacancy <3% (effective January 31, 2024). Renewals and principal‑residence homestays allowed.

• Nova Scotia: Tourist Accommodations Registry requires registration numbers on listings; updates to Short‑term Rentals Registration Regulations (2024) define classes and annual registration cycles.

• PEI: Tourism accommodations licensing confirmed (April 23, 2025 update) for STR stays under one month.

• Newfoundland & Labrador: Tourist Accommodations Act amendments proclaimed December 20, 2024; registration mandatory; enforcement guidance published.

• Federal tax (CRA): For 2024 forward, deductions for STR expenses can be denied for “non‑compliant short‑term rentals” that fail to meet local licensing/registration by year‑end (transition relief for 2024; CRA guidance January 22, 2025). Maintain records evidencing compliance.

Selected authority references (titles only; verify current text before acting): Province of British Columbia Short‑Term Rentals (registry, platform display/validation); City of Toronto Short‑Term Rental Operators/Hosts (2024–2025 updates); City of Calgary Newsroom (bylaw amendments effective April 1, 2025); City of Winnipeg Short‑Term Rental Accommodations (licensing and 6% accommodation tax); City of Edmonton (Residential Rental Accommodation—Short‑Term—licensing/operational plan); Nova Scotia Tourist Accommodations Registry (registration number on listings); Prince Edward Island Tourism PEI (licensing of tourism accommodations); Newfoundland & Labrador Tourist Accommodations Act (registration required, 2024 amendments); CRA “Changes to rules for eligible deductions from short‑term rental income” (Jan 22, 2025).

What Summit needs to quote accurately

• Address(es), construction year(s), building updates, square footage, and separation (suites/ADUs).

• Occupancy profile: principal residence vs dedicated STR; entire home vs rooms; number of bedrooms; average/peak guest counts.

• Annual gross STR revenue and seasonality; platforms used; cleaning/turnover procedures; safety equipment (smoke/CO alarms, extinguishers); lock/access controls; neighbor notification policy.

• Claims history (5 years), prior cancellations for property damage, and incident logs.

• Compliance documents: city licence/registration numbers, provincial registry proof (if applicable), strata/condo rules, and any required additional insured language.

How Summit helps (Canada, excluding Quebec)

• Independent market access: we compare multiple Canadian insurers for STR/inn/B&B risks—commercial or landlord forms as appropriate.

• Program curation: align theft/vandalism‑by‑tenant extensions, host/innkeeper liability, equipment breakdown, BI/extra expense, and cyber with municipal/provincial obligations and strata bylaws.

• Documentation: we issue certificates showing required limits and additional insureds; we can synchronize policy terms with licence renewal dates.

• Claims advocacy: dedicated account manager and 24/7 claims intake via Summit Claims.

FAQs (schema‑ready)

• Do you operate in Quebec?

• No. Summit’s STR/B&B brokerage services are offered across Canada excluding Quebec.

• Will platform “AirCover” replace commercial insurance?

• No. AirCover includes host liability and a damage protection program, but it is not a substitute for property, BI, or comprehensive liability insurance and contains exclusions (including many intentional acts). Maintain your own policy.

• Is loss of rental income covered if my city changes its STR rules?

• Generally no. Most policies require direct physical loss (e.g., fire/water) to trigger coverage. Regulatory changes, fines, or lack of bookings are typically excluded.

• Can a condo/strata block short‑term rentals even if the city allows them?

• Yes. Condo/strata governing documents can prohibit or restrict STRs and may require proof of insurance and compliance. City permission does not override condo rules.

• Do I need commercial insurance if I only rent my principal residence a few weekends?

• At minimum, you must disclose hosting to your insurer. Many homeowner policies exclude business/STR activity; your broker can place a home‑sharing or landlord/STR endorsement or move you to a commercial/landlord form.

• What liability limit should I carry?

• Requirements vary by city, strata, and lender. Many operators target CAD 2–5M primary CGL with umbrella options to satisfy contracts and risk profile. Your broker will right‑size limits.

• How is income protection calculated for STRs?

• Business interruption or “fair rental value” coverage uses historical statements/forward bookings to establish “but‑for” income during the indemnity period after a covered loss, subject to waiting periods and limits.

Compliance reminder: Always confirm the latest municipal/provincial rules (licensing, taxes, registry, display requirements) for the exact property address before hosting. Summit can align coverage and evidence accordingly.