Short-term Rental Insurance: Coverage Considerations for Airbnb and Vacation Rentals

In recent years, the rise of platforms like Airbnb, Vrbo and HomeAway has revolutionized how people travel and seek accommodation. Renting out a property can be a lucrative investment; however, amid the excitement of hosting a vacation rental, it’s crucial not to overlook insurance coverage.

What Is Short-term Rental Insurance?

Short-term rental insurance is a specialized type of coverage designed to protect both hosts and guests from potential risks and liabilities associated with temporary lodging arrangements. From property damage to bodily injury, the right insurance policy can provide peace of mind for all parties involved.

What Are the Risks of Owning Short-term Rentals?

Before delving into insurance options, it’s essential to understand the risks inherent in short-term rentals. For hosts, these risks may include the following:

• Property damage—Guests may accidentally damage the property, furnishings or amenities during their stay.
• Liability—Injuries sustained by guests or third parties on the rental property could result in liability claims against the host.
• Theft or vandalism—Unwelcome guests or malicious individuals may steal or vandalize the property.
• Loss of income—Unexpected events such as property damage or guest cancellations could lead to financial losses for hosts.

Who Needs Short-term Rental Insurance?

The following are some types of people who may need short-term rental insurance:

• Property owners renting out their home or part of their home for short periods—typically less than two months at a time
• Renters who are temporarily subletting their home
• Those using their property as a rental with Airbnb or a similar service

It’s essential to discuss your coverage needs with a qualified insurance agent. If you rent your property for extended periods, you may need alternative coverage, such as landlord insurance.

What Does Short-term Rental Insurance Cover?

Short-term rental insurance policies typically include the following coverage:

• Dwelling coverage may help financially protect the physical structure of your home.
• Personal property coverage may help financially protect any personal belongings on the property, such as appliances.

• Personal liability coverage may help cover medical or legal fees if someone is injured on your property or they file a lawsuit against you.
• Loss of revenue coverage may help cover lost income if damage from a covered event prevents your property from being rented.

Short-term Rental Insurance in Rancho Santa Fe, CA

Contact Ranch and Coast Insurance Services today to discuss your short-term rental insurance needs. We can make policy recommendations based on your property.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.