People may now travel and gain extra money in new ways thanks to short-term rentals. If you let visitors stay in your downtown condo or your cottage by the lake, you take on new risks that regular home insurance might not cover. That's when you should consider short-term rental insurance. This kind of insurance protects hosts from losing money when guests stay too long, damage their property, file liability claims, or have business interruptions that come out of nowhere.
As the market for short-term rentals grows, so does the need for landlord insurance that fits the unique needs of hosting. Property owners may protect their investment and maintain peace of mind by knowing what these insurance policies cover.
Airbnb and Other Platforms
Thanks to services like Airbnb, Vrbo, and Booking.com, hosts may now generate money in innovative ways. But each site has its own approach to keeping hosts safe. For example, Airbnb's AirCover package comes with Host Damage Protection and Host Liability Insurance. This could be a good backup plan, but it's not the same as having short-term rental insurance. Most platform protections have limits, exclusions, and claim thresholds, so owners don't get full coverage.
Vrbo and other sites offer their own types of host liability coverage, but these schemes only protect the site, not the individual hosts. You are always covered, no matter which booking site you use, if you have specialized short-term rental insurance. This includes direct bookings made outside apps developed by other companies.
Specific Policy Requirements
Some insurance companies offer short-term rental insurance policies, but most include basic coverage that rental operators need. At the very least, hosts should look for:
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Property coverage: Protection for the rental unit and its contents against accidental damage, fire, water damage, theft, and vandalism.
- Commercial liability: Since hosting is considered a business activity, liability coverage should apply to guest injuries, accidents on the property, or claims of negligence.
- Business income protection: If a covered event—such as a fire or major repair—makes the rental temporarily unusable, business income coverage can reimburse lost revenue during downtime.
- Home-sharing endorsements: Some insurance companies require an endorsement to be added to a standard homeowners or landlord policy, while others offer short-term rental policies on their own. It's essential to ensure the policy aligns with how often the property is rented and whether you live there.
Guest-Related Damages
Even the most respectful guests can accidentally damage property. Spilled wine on the carpet, broken furniture, missing items, and clogged plumbing are common issues for hosts. More serious incidents—such as intentional damage, unauthorized parties, or theft—may require filing an insurance claim. Comprehensive short-term rental insurance helps cover repairs or replacements while reducing out-of-pocket costs.
When guests get hurt, it's also essential to protect yourself from liability. You could have to pay a lot for medical care and legal fees if someone slips on icy steps or falls because the floor is loose. Insurance protects hosts from claims that could cost them a lot of money. This makes short-term rental businesses safer and more stable for everyone.
Protect Yourself and Your Property with Landlord Insurance
Are you looking for an excellent price on landlord insurance, including short-terms rentals? Contact our team today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!
Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.
