So you got yourself a legit pad that people from far and away want to stay at. They saw your beautifully staged, no-filter photos, read your poetic “Look no further” profile, and can’t wait to dive into your linens. Only question is, are they going to leave your place the same way they found it?
Whether you’re renting through Airbnb, VRBO, HomeAway or any other platform, you need to make sure you’re protected. Our independent agents will help you find the right coverage to maintain the feng shui of your homesharing experience.
What Is Short-Term Rental Insurance?
Boiled down, it’s specialty coverage or an “endorsement” that’s added to a homeowners policy to protect you, your short-term renters, and the personal goodies of both parties from damage or harm due to a number of causes.
Is Short-Term Rental Insurance Mandatory?
Nope, but unless you like living/renting recklessly, you should explore your insurance options.
Does Homeowners Insurance Cover Short-Term Renting?
The short answer is gonna be a solid, “Probably not.” A standard homeowners policy may have certain exclusions about renting in general so typical coverage may not apply to this situation.
Harold Soden, insurance and risk management advisor at Oliver L.E. Soden Agency, Inc. in New Jersey, says that only having a homeowners insurance policy and the guarantee provided by the renting platform typically isn’t enough.
“Never assume that whatever coverage the rental platform provides is actually insurance, because it’s usually not. And a typical homeowners policy usually doesn’t cover your possessions or liability while your property is being rented."
Why Do You Need Short-Term Rental Insurance?
As mentioned before, a homeowners policy and a rental platform’s policy won’t provide head-to-toe coverage, meaning you’ll need some additional protection. Because let’s face it, there’s nothing worse than renting to earn some extra cash, then losing it all by having to pay out of pocket to repair or replace your stuff.
What Does Short-Term Rental Insurance Cover?
If you’re one of those people who make a habit of imagining worst-case scenarios, this specialty dish of coverage will help ease your mind while you’re away … or in the next room. For example, if you have nightmares about guests bringing in an insect infestation or trying to steal your identity, there’s coverage for that.
Gap protection should include the following:
- Your belongings: Say a guest accidentally or on purpose makes off with your expensive Japanese lamps. If you’re a victim of theft, you’ll want to make sure your policy will actually recover losses of your personal property. The same goes for belongings that are damaged as a result of hosting.
- Liability: Your guest trips on a loose tile in your entryway, and their injury requires medical treatment. Short-term rental insurance with liability coverage would take care of whatever you’re on the hook for, which could be a lot.
How Can I Get the Right Short-Term Rental Coverage and Quotes?
So you know you need it, but do you need it all the time, or on a case-by-case basis? How much or how little coverage will fill the gaps? This is one of those times where it’s best to get professional assistance right off the bat.
“The first and most important thing you should do is talk to an independent agent. That way, you’re getting the most updated and accurate information and can follow specific rules for your state,” Soden says.
Plus, they’ll simplify the process by shopping and comparing short-term home rental insurance quotes for you. Not only that, they’ll cut the jargon and clarify the fine print so you know exactly what you’re getting.
How Much Does Short-Term Rental Insurance Cost?
It depends. Some policies make sure you’re covered 365/24/7, while some cover just the nights your rental is booked. And depending on the bells and whistles you need, coverage can be a small add-on or a larger but worthwhile investment to keep your home safe.
A Cautionary Tale
Soden says that when explaining the importance of getting short-term rental insurance, an episode of “Broad City” comes to mind. The main characters list their apartments on B&B-NYC — and, spoiler alert, someone steals their stuff.
“If they’d talked to their insurance person first, they maybe could have avoided that,” says Soden.