Home-sharing Insurance Short-Term Rental Endorsement

Transcription

1 Home-sharing Insurance Short-Term Rental Endorsement February 2017

2 Introduction Aviva is excited to offer a new industry-leading coverage, specifically designed for customers who rent their property through home rental networks such as Airbnb. Our Short-Term Rental Endorsement (STR) is designed to address possible gaps in coverage and provide hosts with peace of mind while renting their residence (or a portion of it) on a short-term basis. The standalone version of the Short-Term Rental Endorsement (STR3) provides yearround coverage for customers who rent their income property on a short-term basis. They can also purchase this coverage even if their primary residence isn't insured with us. 2

3 Agenda Important definitions Product overview Adding the coverage

4 Important definitions

5 Key terms Before we discuss the product in more detail, let s get familiar with some of the terms we ll use: Home rental network A digital platform, software, website, or system operated by a rental network company that allows people to list, find, and rent short-term accommodations and lodging. Home rental network company A company that operates a home rental network for the sole purpose of pre-arranging short-term rental accommodations and lodging. These companies connect people with property to rent (hosts) with people looking to rent the space (guests) Examples include: Airbnb, Flipkey, HomeAway, VRBO, and Corporate Housing by Owner (CHBO). Short-term rental When a person rents their full residence, or a portion of their residence on a temporary basis, multiple times, to different individuals throughout their policy term. 5

6 Product overview

7 Availability The Short-Term Rental Endorsement will be available on February 1, 2017, for new and existing Aviva customers. Company Aviva Insurance Company of Canada Traders General Insurance Company (group division) Scottish & York Insurance Co. Limited Product availability Homeowners Condominium Seasonal/secondary homeowners Seasonal/secondary condominium Income property (fire and extended coverage forms accepted) Out of scope Tenants policies Seasonal risks (fire and extended coverage) 7

8 How it works The Short-term Rental Endorsement is a simple addition to an Aviva personal property policy. Customers can choose coverage based on their rental activity needs as follows: STR1 Gives principal and seasonal/secondary homeowners the ability to rent their entire home for up to 90 days, or a portion of their home (eg a room or basement) for the full year. STR2 Gives principal and seasonal/secondary homeowners the ability to rent their entire home for up to 180 days, or a portion of their home (eg a room or basement) for the full year. STR3 Gives income property owners the ability to rent their residence for the entire year. 8

9 Eligibility Available for new and existing Aviva customers. home and condominium owners secondary/seasonal home and condominium owners income property owners For customers who rent their residence, or a portion of it, on a short-term basis, multiple times, and to different individuals throughout their policy term. Must be managed by a home rental network (for example, Airbnb or Flipkey), or by an independent professional property management company. Hosts can rent out their entire residence, or a portion of it while living in it. The endorsement is available for a maximum of either 90 days or 180 days if the host is renting their entire home, in this case the host must not be at the home during the short-term rental period. The endorsement is available for the entire year if the host is still living at the home and only rents out a portion of their home on a short-term basis. Total combined liability limit (including umbrella) cannot exceed $2 million. 9

10 How much will it cost? Premiums for the Short-Term Rental Endorsement are based on: Current annual personal property premium Number of days per year the home is being rented Individual risk characteristics The Short-Term Rental Endorsement premium represents an annual risk level and must not be removed. If it s removed, it can t be added back to the policy for at least 12 months. A premium estimate calculator will be available at avivacanada.com/home-sharing as of February 1,

11 What s covered? liability arising out of the short-term rental loss or damage to buildings loss or damage to personal property caused by any tenant theft or attempted theft by a short-term tenant intentional or criminal act or failure to act by any tenant loss or damage to the uninsured property of short-term tenants up to $1,500 fair rental value (loss of rental income) 11

12 Benefits Provides customers with choice based on their rental activity needs. Is a simple solution that addresses a gap in coverage. A standalone policy is available for rental income property owners. Provides customers peace of mind. It s easy to explain and understand coverage. Coverage can be tailored to meet customers needs. Aviva Canada is the first to respond in the event of a claim. 12

13 Marketing On February 1, 2017, a comprehensive marketing campaign will be launched, including: A press release Social media posts Display banner ads Trade advertising Please remember to share our posts on your social media accounts. 13

14 Adding the coverage

15 Broker Portal system For the homeowner, seasonal/secondary homeowner and seasonal/secondary, select STR1 or STR2 from the endorsements dropdown menu. For rental dwelling, select STR3 from the endorsements dropdown menu. 15

16 Thank you