Thinking of renting your home or room as a vacation rental on AirBnB, VRBO or other short-term vacation rental site? Before you do, you’ll want to make sure that you have the proper insurance coverage.

In the case renting out your home or room for money, which would be classified as a landlord-tenant situation, even if that guest is only on your property for a short time, like a weekend.  While sites, like Airbnb, do offer some property protection for hosts against damage by a guest, it does not include liability insurance. A landlord insurance policy from Direct Insurance Services may cover losses for injury claims by guests, loss of belongings or damage to your home caused by a tenant.

What Sorts of Rentals Are We Talking About?

If you rent under any form of companies such as:

• AirBnB
• HomeAway
• EasyRoommate
• VRBO
• Home Exchange
• Hometogo

You need a specialized form of insurance policy called Landlord Protection Insurance, also known as Vacation Rental Insurance.

What does Landlord Protection insurance include?

Landlords just do not own the home or condo being rented, they may own additional items or toys such as kayaks, hot tubs, bikes etc. that tenants have access to.

A Landlord Protection insurance policy can include:

• Commercial Package Policy: coverage for building(s), contents, liability, and income
• Building(s): special cause of loss with replacement cost valuation
• Contents: special cause of loss with replacement cost valuation
• Commercial general liability insurance coverage
• Income Coverage: actual loss sustained business income coverage with no time limit
• Liability coverage continued to amenities: swimming pools, hot tubs, watercraft, bicycles, docks, rec areas, + much more
• Enhancement coverage: theft, damage to your rental caused by a guest, animal/pet liability + more
• No standard occupancy restrictions; designed for short-term rentals

When letting renters into your home whether for short or long periods of time, you should do a proper screening.

Additional Coverage Options

There are additional coverage options that may be added to Landlord Protection insurance policy. Talk to an agent about these optional coverages:

• Libel or slander
• Accidental Damage
• Wrongful eviction

We’re ready to help insure your Short-Term Vacation Rental property!

Frequently Asked Questions about Short Term Rental Insurance

Is Landlord insurance the same for Short-Term vacation rentals?

Not all insurance companies will insure a short-term vacation rental. While they are both considered landlord insurance policies, some companies simply do not want the added exposure of short-term renters.

Doesn’t insurance provided by AirBnB or VRBO cover my home?

No, it does not. It is your responsibility to stay up to date on your familiarity with AirBnB’s policies but currently (November 2020) they offer something called “Host Protection insurance.” This is a liability insurance policy. You can read more about it here. This does not provide coverage for your property, however.

What other insurance should I have for a short-term rental home?

Landlords should purchase an Umbrella insurance policy to protect their assets and have an extra layer of protection.