Most owners of short-term rental properties that advertise on Airbnb and VRBO carry a homeowners or landlord policy, both of which do not appropriately cover a vacation rental. The owner needs to think about theft, vandalism, miscellaneous property damage, business income, and commercial liability. Homeowners insurance is designed for owner-occupied properties, and a landlord policy is designed for tenant occupied properties. When someone short-term rents a property on Airbnb or VRBO they are a guest and the owner needs short-term rental insurance coverage.
Building, Contents, Income, and Liability Insurance for Short-Term Rentals
Property owners need to have coverage for their building, their contents, their income, and their liability, period. The key is to find a short-term rental insurance policy that can cover all of this and replace the current coverage on the home. In other words, a policy they can buy, and then cancel their homeowners or landlord insurance.