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 general 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. Frivolous lawsuits are filed every day against short-term rental property owners, and if you don’t have adequate coverage, you could be paying for legal representation out of pocket.
Please take a few minutes to complete the Proper Insurance® online quotation, and a licensed insurance agent will reach out to provide a free consultation and deliver a custom proposal. Proper insures short-term rentals located in all 50 states and D.C.
Not Having Rental Insurance for Short-Term Stays Could Be An Ordinance Violation
If you live in one of many cities or 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 homeowners insurance does not apply for short-term 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. The minute your Airbnb or Vrbo online listing or advertisement goes live, you are operating a business in the eyes of the insurance world.
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. Plus, these supplemental policies or riders are very limited in coverage. With Proper Insurance®, you’ll have one all-inclusive plan that doubles as both homeowners coverage and short-term rental insurance.