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.
Without adequate short-term rental insurance, you’re exposing yourself financially to liability and property damage issues. For example, if your guest were to file a claim against you, you could be held liable to pay for their medical bills and pain and suffering. This is true even if they only stayed in your home for a single day.
Not Having Rental Insurance for Short-Term Stays Could Be Illegal
If you live in one of many counties that now require adequate commercial property damage insurance and liability coverage, then you could find yourself facing steep fines for being out of compliance. Remember, insurance helps protect you, your property, your income, and your guests. Because homeowner’s insurance does not apply for rentals, be sure that you sign up for ample coverage through a short-term rental insurer before you decide to list your home up for rent.
Building, Contents, Income, and Liability Insurance for Short-Term Rentals
Property owners need to have coverage for their building, contents, income, and 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. While you can sometimes purchase temporary renter coverage in addition to your homeowner’s insurance, this often adds unnecessary expenses as you now must pay for and manage two separate policies. With Proper Insurance®, you’ll have one all-inclusive plan that doubles as both homeowner’s coverage and rental insurance.