A little coverage can go a long way to protect your property. That’s the beauty of short term rental insurance: it provides protection for your primary residence or another home on your property when you’re renting it out—which, thanks to vacation rental services like Airbnb, millions of people are doing to make extra income.
But, as a host, you have some extra responsibilities. You have to make sure your home, property, and guests are protected. After all, you’re trying to make money—not lose it.
Here’s the thing: traditional homeowners insurance policies only insure the house when it is owner-occupied—or occupied by family members or even someone just visiting your property.
As soon as you rent your home or part of your home, it becomes a business transaction, and home insurance does not automatically cover business ventures. So, if you don’t have liability insurance for short term rental when you’ve rented your home, you’ve left yourself exposed to the possibility of a serious expense if anything should happen to anyone or anything on your property.
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To be clear, short term rental insurance is usually gap coverage, meaning it is supposed to work in tandem with your primary homeowner’s or renter’s insurance and is not intended to work alone.
The reason for this is simple: short term vacation rental insurance only covers your home sporadically, when you tell your carrier your home will be occupied by guests—usually for a total of 62 days a calendar year. If this insurance were your only insurance, there would be a large period of time when your property would not be protected.
What’s more, short term rental insurance doesn’t cover everything that comprehensive homeowner’s insurance covers—and homeowners insurance doesn’t cover everything your short term insurance will cover.
For example, most homeowner’s insurance doesn’t cover infestation, but short term rental insurance will. After all, you never know what a guest may bring into your home. And thankfully, you don’t have to stress about it if you have insurance for your short term rental because even if guests do come packing pests, your policy will have you covered.
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Not every insurance provider will offer short term rental insurance, but a good place to start looking for this coverage is with your existing home or renter insurance provider. You don’t have to commit, but get a price so you can compare.
You can also get quotes from other providers, though this may be a little more expensive than going with your existing carrier because you won’t be taking advantage of a multi-policy discount. On the other hand, if your existing provider deems short term rental insurance too much of a risk, going with a separate provider may be the less expensive option.
Every insurance provider is different.
You really won’t know your rates until you get some quotes. We can help. Contact us to get a free quote for short term rental insurance. We’ve curated a list of the best providers for this niche coverage and we’ll pair you with the best short term rental insurance specifically for you.
Not legally, but it’s a huge risk if you don’t have it. Even if you aren’t renting your home—even if you will just be away for a while and friends, family members, or a house sitter will be watching your home—short term rental insurance will give you an added layer of protection you may need.
That depends. On average, most policies are $1,500 to $3,000 per year. Get a quote to find out what you can expect to pay to cover your property.
Maybe, but maybe not. Many providers will offer short term rental insurance as an add-on, but there are also some that won’t and you will need to get a separate policy.
Check your rental agreement. Some leases will prohibit subletting. In addition to your renter’s insurance (which you should already have), you can investigate a second, short term rental insurance policy for your apartment or room you are renting.
Typically, short term policies are only meant to cover your property for around 62 days (two months) in total out of the entire calendar year. You will often have to inform your insurance company when the rental is booked to enact coverage.
Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.
