INSURANCE FOR VRBO HOSTS

Your Vrbo property isn’t a side hustle. It’s a business with a rotating door of guests. And if you’re relying on a Homeowners or Landlord policy to protect it, you’re already exposed. Most standard policies exclude short-term rentals altogether, leaving you with costly gaps when the unexpected happens.

Proper Insurance is exclusively endorsed by Vrbo as their preferred provider for comprehensive insurance. The Proper Policy completely replaces a Homeowner’s or Landlord policy, offering superior protection and outstanding service. The policy provides coverage for all booking platforms including Airbnb and direct bookings, and even periods of vacancy.

Insurance for VRBO Owners

Why Standard Insurance Falls Short for Vrbo

Vacation rentals are a business—even when the home is used personally. That’s why standard Homeowners or Landlord policies often fail the moment a paying guest is involved, leaving the property, contents rental income, and business liability exposed. Gaps include business-use exclusions, “residence-premises” limitations, and no protection for cancelled bookings when your property is unlivable.

Common gaps in traditional insurance policies for vacation rental hosts:

Business activity exclusions when a guest pays to stay

Home-sharing endorsements limited to primary residence (“residence premises”)

Property entrustment gaps for guest-caused damage and theft

Amenities liability (pools, hot tubs, bikes) + off-premises exposure often limited

Liquor and invasion of privacy are excluded

No business income protection for downtime after a covered loss

Platform provided tools are not the same as carrying your own insurance policy. Vrbo hosts need a purpose-built solution.

Vrbo Hosts Need to Have Robust Vacation Rental Insurance

Operating a Vrbo property produces real income, whether it’s a single-family home, condo, or cabin. There are three exposures that every host should account for: the property itself, guest liability, and rental income when a covered loss prevents bookings.

Damage to Your Property & Contents

Illustration of someone worrying about a broken window in an Airbnb

Liability Involving Your Guests

Illustration of a Short-Term Rental Insurance Liability Slip and Fall

Loss of Business Revenue

Illustration of the importance of insurance for your Airbnb and finding commercial insurance coverage for your vacation rental home.

The Proper Policy: One-of-a-Kind Commercial Homeowners Coverage

Insurance contracts break down when you give someone the keys to your home or entrust your vacation rental property to a guest. Gaps quickly appear around guest-caused vandalism, damage caused by a guest, liability off-premises and more. The only way to get comprehensive coverage for your vacation rental property is through a specialty Vrbo insurance policy that can completely replace your current policy.

The best thing to do is read real insurance reviews to know what to expect, and make certain you have all reasonable exposure covered.

The Proper Policy is unique Commercial Homeowners coverage that includes:

Purpose-built for vacation rentals, not a Homeowners add-on

Commercial-grade liability with robust strength and off-premises extension

No sub-limit on guest damage, vandalism & theft

Actual Loss Sustained business income protects booked and unbooked nights when property is unlivable

Amenity liability ready for pools, hot tubs, bikes, small watercraft

Lender-friendly and is accepted by major U.S. lenders

Proper is the Best Insurance for VRBO Hosts

With almost everything in life, you get what you pay for, and insurance is no different. The only way to get comprehensive Vrbo insurance is with a Commercial policy that can entirely replace inadequate coverage. The Proper Insurance policy was custom-penned for vacation rental properties and is the most comprehensive insurance a short-term rental owner and vacation rental host can purchase. A policy designed for Vrbo operations—replacing the patchwork solution of Homeowners + Landlord + riders.

Coverage	Proper Insurance	Homeowners Insurance (HO)	HO + Home-Sharing Endorsement	Landlord Insurance (DP)
PropertyProperty example: A natural disaster occurs like a tree falling on your home.		Homeowners Insurance: Exclusion for business activity	HO + Home-Sharing: If your Airbnb is not your primary home, your HO coverage with an endorsement is likely null and void.
Damage, theft and vandalism by a guestDamage, theft and vandalism example: Guest throws a party and damages the contents of the home and structure				Landlord Insurance: Covers theft and vandalism if NOT by your Airbnb guest (property entrustment). Limited contents coverage.
Liability on premises Liability on premises example: Guest slips and falls exiting the shower at your rental.			HO + Home-Sharing Endorsement: If your Airbnb is not your primary home where you live, your HO coverage, even with an endorsement, is likely null and void.
Liability off premises Liability off premises example: Guest gets injured while off your property line (like at the beach of your waterfront rental or guest burns your neighbors house down/dog bite – someone gets hurt off property ties it back to you)
Replacement costs Replacement costs example: Roof damage from a covered cause of loss	Proper Insurance: Pays pure replacement cost – the full amount needed to replace damaged item (new for old). No depreciation deducted.	Homeowners Insurance: More often than not this would be responded to, however the business activity exclusion found in HO policies could result in no coverage.	HO + Home-Sharing Endorsement: Typically, pays “actual cash value,” which includes depreciation. The insurer may pay you only $10,000. If this is not your primary home, you may receive $0.	Landlord Insurance: Typically, pays “actual cash value,” which includes depreciation. The insurer may pay you only $10,000.
Loss of income Loss of income example: A claim occurs at your property that takes your Airbnb out of business	Proper Insurance: Provides a check for the actual revenue lost up to the limit of your choosing.		HO + Home-Sharing Endorsement: Some endorsements may extend limited coverage to use “loss of use” as “loss of rents.” However, you may not have enough to cover additional living expenses and loss of income.	Landlord Insurance: Provides a check for “loss of rents,” which is based on the average from your area, including long-term rentals.
Liability for amenities Liability for amenities example: If a guest gets injured or worse from your provided bikes, kayaks, pool, hot tub, etc.				Landlord Insurance: Only covers amenities that are confined to your property line.
Vacancy Vacancy example: Damage occurs at the property during the shoulder season or period of vacancy
Invasion of privacy Invasion of privacy example: House cleaner accidentally walks in on a guest before they check out
Airbnb squatterAirbnb squatter example: A person rents your property for one week but overstays their checkout period by three months and is now protected by law as a tenant
Bed Bugs Bed Bugs example: Liability from bed bug bites and the cost to exterminate them

Host FAQ: “Does Homeowners or Landlord insurance cover Vrbo?”

No, the majority of Homeowners and Landlord policies aren’t built for vacation rental business activity. Hosting introduces unique liability scenarios, property entrustment gaps, and lost-revenue exposures that standard insurance policies typically exclude. Learn why Vrbo hosts need specialized insurance.

Real Review of Proper’s Coverage & Claims

“Our agent was extremely patient, helpful and knowledgeable. I had been exploring different insurance options for our Vrbo investment, and someone told me about Proper Insurance. Once I studied the details and compared against other available options, it was really a no brainer to go with Proper. Great process from start to finish! Thank you, Proper Insurance, for providing this insurance option which is truly tailor-made for short term rental owners.”

– Tony

Rated 4.8/5 Stars Across Review Platforms

VRBO Host Insurance Frequently Asked Questions

Is a home-sharing endorsement with Homeowners insurance good enough coverage for my Vrbo?

Not typically. Home-sharing endorsements are designed for primary residences — the home you actually live in. If your Vrbo is a second home, a vacation property, or anything other than your main address, the endorsement won’t apply. Even on a primary residence, coverage is limited. A home-sharing endorsement patches a Homeowners policy; it doesn’t replace it with something built for the risks that come with taking paying guests.

What happens to my rental income if a loss takes my Vrbo off the market?

Yes. If a covered loss — a burst pipe, wind damage, fire — forces your Vrbo off the market during repairs, Proper reimburses the lost rental income. Unlike most competitors, there’s no time limit on that reimbursement. You’re covered until your property is back in business, up to your chosen limit. A Vrbo vacation rental is an income-generating business; its revenue protection is crucial. There is no better risk mitigation plan than Proper’s Vrbo insurance policy.

Will a personal umbrella cover my Vrbo?

Personal umbrellas follow the underlying policy and generally exclude business activity. If the base policy excludes STR incidents, a personal umbrella won’t respond. Consider commercial excess only after the correct base is in place.

How much liability coverage do Vrbo hosts usually carry?

Many select $1,000,000 in Commercial General Liability per occurrence, with options to increase based on amenities, guest count, and seasonality.

Why is Vrbo liability insurance critical for vacation rental owners?

As a vacation rental property owner, having a good grasp of Vrbo liability insurance is important. The U.S. is an extremely litigious society and bodily injury or liability lawsuits are commonplace in the vacation rental industry.

What legal duties do Vrbo hosts have to paying guests?

A core concept all Vrbo property owners must understand is that you compete with Hilton and Marriott for travelers’ lodging dollars, which means you are held to the same hospitality laws and legal duties, which include protecting a guest’s safety and preventing negligence.

What safety considerations should Vrbo owners keep in mind?

Common safety items include a fire extinguisher, emergency contact information, reasonable lighting, handrails, and warnings or notices for amenities such as hot tubs, swimming pools, bicycles, and so much more. Proper has underwritten more then 200,000 insurance policies and settled tens of millions in claims. We know what to look for and can help educate you as an insured.

How likely are guest injuries or lawsuits—and how does Proper help?

Regardless of how much we underwrite and how safe your property is, a guest will get injured at some point, and the likelihood of a lawsuit is very high. This is where insurance for Vrbo owners comes in, and a comprehensive Vrbo insurance policy from Proper can make all the difference.

Peace of Mind Delivered to Your Inbox

In an industry that keeps you busy enough, our monthly newsletter makes staying informed effortless. Get the latest on emerging trends, real short-term rental risks, and regulatory changes.

"*" indicates required fields