What Is Short-Term Rental Insurance?


WRITTEN BY: Mark Romero

UPDATED: SEPTEMBER 21, 2022 | 2 MIN READ

Short-term rental insurance is a type of coverage you can purchase to protect your property from damage or theft. This coverage is usually available for rentals that are less than 30 days in length. This type of insurance can be a good idea if you plan to rent your home or apartment while you are away on vacation. It can be helpful if you rent second home on a short-term basis. It can also be beneficial if you plan to rent your house for short periods while trying to sell it.

What Is Short-Term Rental Insurance?

Short-term home insurance is sometimes another name for unoccupied property insurance. Other times it may similar to host protection insurance, in that it gives you peace of mind while renters stay in your vacation home.

Short-term rental insurance is a type of property insurance that covers the loss or damage to your rented property. It is often a standalone policy and not included in your homeowner’s policy.

The short-term rental market has been growing rapidly in recent years. This is likely due to the rise of Airbnb, VRBO, HomeAway, and other online short-term rental platforms.

What does it cover?

Short-term rental insurance policies typically cover losses and damages to the property. This includes things such as theft, vandalism, fire, and water damage.

Additionally, short-term rental insurance will give you liability coverage. This policy covers you if a paying guest injures themselves in your vacation home.

The most common risks that are covered by this type of insurance are:

  • Vandalism: This can happen when someone intentionally damages your property with graffiti, paints on it, or throws rocks at it.
  • Renters stealing your belongings: This can happen if someone steals valuable items from your rental home. This may include any jewelry, electronics, or clothes.
  • A natural disaster: This can happen when a storm or hurricane destroys your home, building, or yard.

Does short-term rental insurance cover personal property?

Different types of short-term rental insurance offer different levels of coverage. For example, some policies will only cover up to $2,500 worth of personal property, while others may offer up to $10,000 worth in the case of personal property damage.

Some policies will provide coverage for items such as laptops and tablets but not jewelry or other valuables. Other policies may exclude certain items like jewelry or electronics.

How does it work?

If you own a home that isn’t going to be your primary residence, you may want to use it as a short-term vacation rental. In this case, you may have a landlord insurance policy. However, there are gaps between a standard homeowner’s insurance policy and a landlord insurance policy.

Therefore, you may want to look at getting additional coverage.

Who Needs Short-Term Rental Insurance?

Short-term rental coverage is a type of insurance that covers you for a short period of time. It is meant for people who are renting out their property on a short-term basis.

This type of insurance is designed to cover the loss or damage to your property in case of an accident or theft. So if your home is damaged by fire, it will cover the cost of repairs and replacing any items that were lost in the fire.

Liability insurance also covers any damage that you cause to someone else’s property while using it. It also covers any bodily injuries sustained by people who are on your property while you’re renting it out.

Short-Term Rental Insurance Considerations

There are a number of things to consider when looking for renters insurance for your short-term rental property.

  • One important thing to know is if the policy has any exclusions.
  • You’ll also want to make sure that your rental income is protected, should your business activity become disrupted.

What Kind Of Insurance Policy Do You Need?

The first step in getting an insurance policy is deciding what kind of insurance you need.

Endorsements to existing home insurance policies

Some people may be able to speak to their current insurance carrier to add an endorsement to their existing policy. This may then cover you for short-term renters staying in your property.

Homeshare insurance or vacation rental insurance policies

If you’re going to rent out your home or part of your home, you’ll likely want to get some kind of homeshare insurance or vacation rental insurance policy.

Landlord insurance policies

If you decide to go the route of becoming a landlord, and renting out your property for longer periods of time, this type of home insurance may be for you. Check with your insurance carrier to make sure that you’re covered.

Commercial insurance policies

If you carry out business activity from your premises, commercial insurance may be your best option.

Short-Term Rental Insurance FAQs

What kind of insurance do I need for a vacation rental property?

This depends on a number of factors. Speak to your insurance agent to discuss your coverage options.

What’s the best way to protect my short-term rental?

Having proper insurance is the best way to make sure you protect your rental home.

How much does short-term rental insurance cost?

This varies depending on the insurance provider. It also depends on the deductible you’re willing to pay. Speak to your insurance agent to get a detailed insurance quote.

What kind of insurance do you need for AirBNB?

As an AirBNB host, you may be required to have certain types of insurance depending on the country where you are hosting your property. You can speak to insurance companies to find out your coverage options.

What’s the difference between a vacation rental and AirBNB?

A vacation rental is a service that provides accommodation for visitors to a particular area. The property is typically managed by the owner or property manager, and rented out for short periods of time. AirBNB is a company that allows homeowners to rent out their homes or apartments to guests over short periods of time. . In comparison, vacation rentals are usually managed by the property owners themselves. AirBNB manages the entire process on behalf of the homeowner. This includes customer service and payment processing.

Finding Short-Term Rental Insurance

The first thing you should do is find out what kind of policy you need. There are two types of policies: a replacement cost policy or a cash value policy. A replacement cost policy will cover the cost of replacing your property with similar items if it was stolen or damaged beyond repair. A cash value policy will reimburse you for the current value of your property in case it was stolen or damaged beyond repair.

The next thing to do is research which insurers offer short-term rental policies and what their requirements are. Finally, get home insurance quotes from as many insurers as possible so that you can compare prices and see which offers the cheapest rates.