Alternative options to protect your short-term rental
One alternative to short-term rental insurance you may consider is landlord insurance; however, this type of policy is usually designed for long-term rentals. Unless you plan to have the same tenants for an extended period of time, you may find that some insurance companies will not offer you a landlord insurance policy.
Another option is to consider finding an insurance policy that covers both your home and your short-term rental. This type of coverage streamlines the process and can potentially save you money since the coverage for the rental is likely coming from an endorsement/rider rather than a separate policy.
Airbnb host insurance
If you book your property through Airbnb, you are also entitled to some automatic protection, although it may not provide as much coverage as a short-term rental policy.
When you become a host on the platform, you are covered by Airbnb’s host protection insurance. This coverage includes up to $1 million primary liability coverage of bodily injury or property damage. It also includes coverage for damage that your guests cause to common areas, such as building lobbies.
Host protection coverage does not include property damage from environmental factors such as mold, damage or injury from intentional actions or loss of earnings. If you need to file a claim, you must first contact Airbnb, who then puts you in touch with a third-party claims administrator.
In addition to the protection insurance, hosts also automatically qualify for Airbnb’s host guarantee. This covers any damage to your listed property and possessions up to $1 million. However, this is not considered an insurance policy and Airbnb still recommends getting additional insurance to protect your listing.
Vrbo liability insurance
Vrbo liability insurance offers $1 million in coverage to protect homeowners offering their property as a short-term rental, a coverage that may be excluded from your regular homeowners policy. This coverage is available for stays booked through Vrbo’s online checkout. This coverage provides the added benefit that if you already are insured and a Vrbo traveler files a claim, you have the additional protection of the $1 million Vrbo coverage. This coverage is also global and will apply regardless of where your rental is located. Vrbo’s insurance is not meant as a standalone policy, as the platform’s listing requirements include that owners have sufficient existing coverage.
Vrbo insurance may cover property damage claims when a traveler has caused damage to a third-party. However, this coverage does not provide protection for damage caused to your property, so it is important to have alternate coverage in place. Vrbo insurance may also provide coverage for traveler injury claims.
Homeowners listing their property as a short-term rental on Vrbo do not have to utilize this coverage, although rental reservations booked through the online Vrbo checkout system are automatically covered. Either way, rental owner fees do not increase with the service’s use. In the event of an incident, claims can easily be filed online.
