Homeowners Insurance Does Not Equal Short-Term Rental Protection
At Day Insurance Agency, we help property owners stay protected with smart insurance tips for Airbnb and VRBO hosts. Most standard homeowners policies only cover owner-occupied homes. Once you rent—even occasionally—your insurer may consider it a business activity and deny claims. Common uncovered scenarios include:
- A guest damaging your home
- A fire during a weekend rental
- Guest injuries and lawsuits
- Theft or vandalism during or after a stay
If you list your home on Airbnb or VRBO, your homeowners policy likely won’t be enough.
Know What Insurance Options Hosts Should Consider
You have two main choices:
- Short-Term Rental Insurance Policy
- Covers property and contents
- Provides liability protection
- Reimburses lost income if uninhabitable
- Protects against theft, vandalism, or even infestations
- Landlord Insurance with a Short-Term Rental Endorsement
- Works for occasional rentals like guesthouses or seasonal listings
- Adds protection for short-term stays if allowed by your insurer
Understand the Limits of Airbnb and VRBO Insurance
Platforms provide some coverage, but it’s limited:
- Airbnb Host Guarantee: Up to $3 million in damage protection, but exclusions apply
- Airbnb Host Liability: Up to $1 million in liability coverage, subject to conditions
- VRBO offers similar liability and damage protection
These policies are not guaranteed and don’t replace your own coverage.
Coverage Every Vacation Rental Host Should Have
When building your policy, make sure it includes:
- Building & property coverage
- Contents protection for furnishings and appliances
- Liability insurance for lawsuits or injuries
- Business income coverage after a loss
- Guest medical payments
- Theft and vandalism protection
Protect Yourself with Smart Hosting Practices
Insurance is vital, but prevention matters too. Protect your property by:
- Requiring security deposits
- Using check-in and check-out procedures
- Taking before-and-after photos
- Installing smoke detectors and fire extinguishers
- Posting house rules and emergency contacts
Turning your home into a vacation rental is a smart way to earn income, but it comes with unique risks. With the right policy in place, you can safeguard your property, protect your income, and host with confidence all year long.
Don’t hand over the keys unprotected. Call Day Insurance Agency at (724) 228-3448 in Washington, PA or (724) 356-7700 in Hickory, PA. Learn how to protect your property with these insurance tips for Airbnb and VRBO hosts.