Short-Term Renters Insurance Basics
As a homeowner or renter, you'll need to have extra insurance if you regularly rent out your home or vacation property to short-term guests.
If you are a guest staying at a short-term rental, you can count on your homeowners or renters insurance policy to provide some coverage but may want to buy travel insurance for extra protection.
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Who needs short-term rental insurance?
What is short-term rental insurance?
Short-term rental insurance protects you and your home if you regularly rent your house or part of your house to guests for a short period of time.
Typically, home or renters insurance doesn't offer protection if you're renting out your house, even if it's just a room. In fact, your insurance company could cancel your policy if it finds out you've been renting your space to guests.
Some insurance companies allow you to add short-term renters coverage onto your existing policy. Homeowners and renters can also buy a separate policy specifically tailored toward short-term rentals.
Short-term rental insurance vs. landlord insurance
Insurance companies usually consider someone a short-term renter if they're staying at your home for less than one or two months.
Anyone leasing their home to the same renter for a longer period will likely need to purchase either a landlord endorsement (if their insurance policy offers one) or a separate landlord policy.
What does short-term renters insurance cover?
Basic short-term renters insurance protects your home and belongings from damage caused by your guests. It also provides liability coverage, which can help pay guests' medical bills if they're hurt on your property.
Short-term renters insurance can also cover:
- Loss of income
- Liquor liability
- Excess use of utilities
- Identity theft
Vacation rental insurance for homeowners
If a homeowner regularly rents out their property to short-term guests, they should purchase extra coverage to protect themselves and their home while renters stay there.
Most insurance companies won't cover your home if it's rented out for more than 90 days per year by one or more short-term guests. However, you should check your homeowners insurance policy or speak with an agent to check your company's policy.
Some home insurance companies offer coverage that you can add on to your existing policy called a rider or endorsement. If your company doesn't offer a short-term renter endorsement, you'll need to buy a separate policy.
What companies offer home-sharing insurance?
Insurance type | Company | ||
|---|---|---|---|
| Short-term renters endorsement | Allstate | American Family | Nationwide |
| Short-term renters policy | American Modern | Foremost | Proper |
| Landlord endorsement | Farmers | Progressive | |
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If you rent your property using a house-sharing service, like Airbnb or Vrbo, the company may include some insurance protection for hosts.
Airbnb rental insurance
Airbnb offers a program called AirCover for Hosts, which includes $3 million of damage protection for your home and belongings and $1 million of liability coverage. This program doesn't cost anything and also includes guest screening.
However, Airbnb says that host damage protection doesn't cover all damage, and it recommends that homeowners purchase their own insurance policy to make sure they're properly covered.
Vrbo liability insurance
Homeowners that list their property with Vrbo automatically receive $1 million in liability insurance through the company. Vrbo doesn't offer property damage protection, so it's important for homeowners to have their own insurance to cover any damage guests cause.
Short-term insurance for renters
Like homeowners insurance, renters insurance won't protect a renter who regularly leases all or part of their home to short-term guests. Unlike homeowners, renters also need to be aware of the terms of their lease agreement before renting out their space.
Some landlords and developers might not allow tenants to temporarily lease, or sublet, their home to others.
If a renter's landlord permits them to host short-term guests, they're still subject to the insurance company's rules regarding how often they can rent out their space. Most companies won't cover short-term renters if you lease your home for 90 days or more per year. But it's important to check with your renters insurance company to make sure you're following the rules.
Renters who regularly sublet their apartment to vacationers should see if their insurance company offers short-term renter coverage, or purchase a separate policy to make sure they're properly protected.
Short-term rental insurance for guests
There are no insurance policies specifically designed to protect guests paying to stay in someone's home or rental unit for a short period of time.
Your homeowners and renters insurance will cover any personal property you bring with you on vacation, up to your policy limit.
The liability coverage included in your home or renters insurance policy will also travel with you when you're renting a vacation home. This can help pay for damage you cause to the rental home. However, your policy may only cover damage to a rental home from specific hazards — usually fire, smoke or explosion. An umbrella policy may offer extended coverage, but it's best to check with your insurance agent.
Although your home or renters insurance policy will extend some coverage, short-term guests might consider purchasing travel insurance.
Travel insurance policies can help cover the cost of trip cancellations or delays and will reimburse you for accommodation expenses, such as a deposit or bill for a short-term lease.
Where can you buy travel insurance?
Airbnb and Vrbo both offer travel insurance for guests who book a rental through their sites. You can also buy travel insurance through a private insurance company, which may offer more protection, like helping to pay for medical bills if you're hurt while you're away from home.
Insurance for 30-day stays or longer
A guest paying to stay at someone's home for longer than 30 days is not considered a short-term renter.
If you're planning to stay somewhere for more than 30 days, you should consider purchasing a traditional renters insurance policy.
Most insurance companies will offer a policy lasting as few as six months, but other companies might offer coverage for a shorter term.
The good news for renters who need insurance for a stay longer than 30 days but shorter than a year is that renters insurance is relatively inexpensive and can usually be canceled if you need to move. The average cost of renters insurance is $18 per month across the U.S.
When purchasing a renters insurance policy for a short period, don't assume you can simply cancel a policy with a one-year term without penalty. Some companies might charge a fee or refuse to refund the premiums for the months that were paid but went unused.
For this reason, it's important to confirm a company's cancellation policy before you make a commitment.
Frequently asked questions
What type of insurance do I need for a vacation rental property?
People who own a vacation rental property should have short-term renters coverage. Some home insurance companies give you the option to add this coverage to your existing policy. If your company doesn't offer a short-term renters endorsement, you may need to buy a separate policy to make sure you're properly protected.
Who should get short-term rental insurance?
Homeowners and renters who regularly lease their home to short-term guests need to have short-term renters insurance.
If you only rent out your space occasionally, your regular home or renters insurance policy may cover short-term renters. However, you should check with your company to see how many days a year you're allowed to do this before assuming you're protected.
What home insurance do I need for Airbnb?
Homeowners who list their home as a vacation rental on Airbnb should have a home insurance policy along with a short-term renters insurance policy. Airbnb provides some damage and liability protection when you have guests, but it's best to have your own policy so you can make sure all of your stuff is covered if your guests damage your home.
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