Whether it's camping equipment, your backyard or a vehicle, the peer-to-peer sharing market has boomed in recent years.
"It seems, naturally, that consumers see a benefit when they're not using their space or otherwise to generate additional income for themselves," said Daniel Ivans, an insurance expert with Rates.ca. "This might be a quick, easy opportunity to maybe make some money."
At a time when many Canadians are struggling to make ends meet, renting out their personal belongings has become a side hustle. But offering assets, especially big-ticket items like a car, for rent is more complicated than just getting an ad up on an app or online forum. It's also about considering the wear on the item and potential damage costs — and finding the right insurance coverage.
When bigger assets such as a home or vehicle are made available as short-term rentals, Ivans said they're exposed to additional damage risks.
If the individual doesn't inform their insurance provider about short-term rental usage of the asset, they could end up losing their policy coverage and be left with a hefty bill in case of damages, Ivans said.
Most apps, such as car-sharing app Turo, come with existing insurance for the host's vehicle.
Every trip on Turo is covered by the company's commercial insurance policy across provinces, said Bassem El-Rahimy, vice-president of Turo Canada. The company's insurance covers up to $2 million in liability per host, while renters can take on additional protection plans, he added.
"Insurance is essentially built in," El-Rahimy said. Most Turo hosts don't opt for supplemental insurance on top of what the company and their personal auto insurance provide, he added.
"If anything happens to the car while it's being shared, our insurance policy will cover it and kind of keep the host's insurance policy intact," El-Rahimy said.
Turo also mandates its hosts notify their personal auto insurer about the car usage.
"Insurance is a trust game," El-Rahimy said. "You can't be lying or hiding anything from your insurer."
But not all apps may provide that built-in security.
Ivans said it often gets hard for insurance companies to evaluate additional exposure when the item is shared with strangers.
"You're not only loaning something to a friend ... but loaning something to the general public," he said.
"How many providers are out there that are ready to take on that kind of exposure? Probably not too many," Ivans said.
Home insurance can be complicated to assess when a homeowner adds more usage to the property, he said.
"If (consumers) are renting out, say, for example, items like swimming pools or usage of their property, they would want to consult with a broker who can look around to try to find the right company," Ivans said.
David Adams started Sniffspot for city-dwelling pet owners who couldn't find open spaces for their pets in Washington. His solution was to connect dog owners with homeowners who have empty backyards.
The idea took off and spread across the United States, eventually moving north of the border.
Adams said safety is a key aspect of the idea — making sure no one is injured and no property gets damaged.
Like many peer-to-peer sharing apps, Adams said the company offers damage protection and liability insurance.
"Damage protection provides up to $5,000 of protection against any kind of damage that a guest would cause at your property, like a broken gate or a broken chair, things like that," he said.
Liability insurance covers up to $1 million for accidents or injuries that may occur at the property during rented hours, he added.
Still, Ivans warned there can be disparities when using peer-to-peer share apps, especially those with a cross-border presence or international markets.
"There are no guarantees that any app or any organization necessarily can provide somebody with full and holistic coverage for (the) household and their family in the potential case of financial devastation," he said.
This report by The Canadian Press was first published June 26, 2025.
Ritika Dubey, The Canadian Press
