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Insurance for Short-Term Vacation Rental Owners

Written by Leah Bright—Insurance Agent

May 31, 2022 · 4 minute read · Commercial Lines

Blog Insurance for Short-Term Vacation Rental Owners

If you are a VRBO or Airbnb property owner and rely on your homeowners or landlord insurance policy to cover your property, you do not have the coverage you need. Homeowners and landlord insurance policies both have critical coverage gaps that expose you unnecessarily to severe risks.

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Please note: coverage cannot be bound or altered online. A service representative will need to contact you to finalize your request.

Do I need vacation rental insurance?

If you are a VRBO or Airbnb property owner and rely on your homeowners or landlord insurance policy to cover your property, you do not have the coverage you need. Homeowners and landlord insurance policies both have critical coverage gaps that expose you unnecessarily to severe risks.

As a VRBO or Airbnb host, it’s vital that you maintain a policy that protects you and your property during your guests’ stays, your own vacations, and times when the property may be unoccupied.

The four most important areas of coverage are:

  • Building — the home is arguably the most essential part of a vacation property, and you need to protect it the best you can.
  • Contents — your belongings inside the rental home need a second line of defense just as much as the home itself.
  • Income — if a claim is made and your property loses rental time, then you lose income too.
  • Liability — accidents happen, people get injured, and property gets damaged. If accidents happen at your vacation rental, then you are liable.

Does homeowners insurance cover vacation rentals?

Your homeowners insurance may seem like it will provide you the coverage you need, but that likely isn’t the case. Many people don’t realize this, but homeowners insurance doesn’t even cover a personal guest’s stay. In addition, many policies have a full business exclusion clause that cuts coverage off if a claim tied to your business is made.

If you use your property for commercial purposes, it’s vital you have a commercial insurance policy to reflect that.

Can I use landlord insurance to cover my vacation property?

First off, it’s most important to note that you most likely don’t qualify for landlord insurance if you live in your vacation rental. Almost all landlord policies are designed for “non-owner-occupied” property. So, if you’re renting out a room in your home, you will not qualify for a landlord policy.

To answer the original question, if you don’t live in your vacation property you can technically use landlord insurance to cover the property. However, a landlord policy probably isn’t going to be the best type of policy for you. To get the full range of coverage you need, you would most likely have to add on a few riders to the original policy, which would increase your premium even more.

Insurance tailored specifically to vacation rentals like VRBO and Airbnb will consistently provide you better coverage at a lower premium.

How much does vacation rental insurance cost?

Your exact premium will vary, but on average, a vacation rental insurance policy ranges between $2,000 and $3,000 per year. Factors affecting your premium include:

  • How frequently you rent the property
  • The average length of time your guests stay
  • Location of your property
  • What amenities you have on the property (swimming pool, fireplaces, etc.)
  • Value of the property

Do I need VRBO or Airbnb insurance?

There aren’t any legal requirements in place, but to keep yourself protected against unexpected costs and claims, you should maintain an insurance policy tailored to short-term vacation rental properties.

Airbnb does offer its own free insurance program, but there are policy holes, disclaimers, and other important information buried in 70+ pages of hard-to-read fine print.

You don’t have to stitch together policies that don’t fit. Save yourself time and stress by purchasing a single vacation rental insurance policy that provides all the coverage you need.


Leah Bright
Insurance Agent

Phone: 800-525-2060 ext. 4361
Fax: 866-840-0638
D: 605-423-4361
C: 307-296-6142
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