Short-term rental insurance: what it is and who needs it On This Page Intro What is short-term rental insurance?

What is short-term rental insurance?

Your standard homeowners insurance does not provide coverage if you rent out your home, which can leave you financially vulnerable if you use your home as a short-term rental. For peace of mind and enhanced coverage, you’ll need to purchase short-term rental insurance that includes property and liability coverage. If you’re unsure where to begin, ’s insurance editorial team is here to help. We’ll answer your questions about what’s covered and excluded. Plus, we’ll give you a head start in researching insurance companies that provide short-term rental insurance.

How STR insurance works

How STR insurance works

Many home insurance companies offer short-term rental insurance as an endorsement (sometimes called a rider), meaning that the coverage is added to your current homeowners insurance policy. However, some companies may require that you obtain a separate policy to cover your short-term rental. Whether you are renting a room in your house or another structure on your property, this coverage can protect your assets in the event of an accident.

Depending on how your endorsement is written, you may be able to pay only for nights when guests stay at your property, not for continuous coverage. This can help reduce your costs if you plan on offering your property as a rental on a part-time basis.

How to get short-term rental insurance

How to get short-term rental insurance 

To obtain short-term rental insurance, you can check with your current home insurer to see if it’s offered as an add-on or a separate policy. This may be the easiest way to get coverage and you might get a better deal by working with your current insurer. However, if you are unable to get coverage from your current carrier, explore other home insurance companies to compare prices and coverage. If you’re not confident doing it on your own, you can always contact a licensed insurance agent to help.

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What does short-term rental insurance cover?

Exactly what’s covered by insurance for short-term rentals will vary, but in general, most policies include:

• Guest liability insurance: This is one of the core coverages of short-term rental insurance. It can help if a short-term, paying guest is injured on your rental property and you are found legally liable. 
• Theft and burglary: If you rent out your home on Airbnb, it’s likely that some of your personal belongings are there during a guest’s stay. If a guest steals something, you can file a claim with your short-term rental insurance provider to help cover the loss. 
• Personal property insurance: If a guest breaks or damages your home or personal belongings, you may be able to file a claim for that damage. 
• Loss of income: A bad storm, kitchen fire or other covered loss could make your home uninhabitable for guests. Loss of income coverage can reimburse you if you’re not able to rent out your home.  

Like a home insurance policy, you may be able to customize your short-term rental insurance. The add-on coverage types that are available could change depending on which company underwrites your policy, but common optional customizations include: 

• Excess use of utilities
• Flea and bed bug infestation
• Liquor liability
• Identity theft
• Squatter protection

Depending on the laws where you live and your lease agreement, you may be able to list a property you are renting on a long-term basis on sites like Airbnb, where others can rent it for a short term. This is sometimes referred to as Airbnb arbitrage. You might rent out just one room or the entire unit.

However, before subletting your apartment as a vacation rental, you’ll need permission from the owner, as well as appropriate insurance coverage. Ideally, you already have renters insurance in place. If not, you should consider obtaining a policy before hosting paying guests. You may also want to add short-term rental coverage as an endorsement or standalone policy.

What is not covered by short-term rental insurance?

What is not covered by short-term rental insurance?

Short-term rental insurance has some exclusions — especially the free or cheaper policies offered by Airbnb and Vrbo. For instance, Vrbo’s host insurance policy only includes liability insurance; the host’s personal property wouldn’t be covered. 

Some other common short-term rental policy exclusions are: 

• Flood: Like home insurance, short-term rental insurance won’t cover flood damage. You would need a flood insurance policy in order to be financially protected from a flood. 
• Earthquake: Similarly, damage from earth movement won’t be covered by short-term rental insurance. 
• Intentional damage: If a guest intentionally damages your property, it won’t be covered by your short-term rental insurance policy. 
• Wear and tear: If part of your rental property is damaged simply because it’s old and rundown — as opposed to being damaged by a covered policy peril — it won’t be covered by a short-term rental policy. 
• Guests’ property: You are not usually responsible for your guests’ property. If a guest damages their own belongings while on your rental property, that guest would need to rely on their own home, renters or condo insurance policy to cover the loss.
• Theft of valuable items: A short-term rental insurance policy may not cover the full value of some expensive items, like jewelry or artwork, if they are stolen by a paying guest. To fully protect these items, you may need to add a scheduled personal property endorsement to your home insurance policy.

Companies that offer insurance for short-term rentals

Companies that offer insurance for short-term rentals

If you have decided to purchase a short-term rental policy, the first step is to compare quotes from different companies. Not only does this help you to get the best price, but it can also help you get the specific coverages that you want.

National and regional property insurers that offer short-term rental insurance include:

• Allstate: Allstate’s HostAdvantage home-sharing insurance offers a Merry Maids discount, with $25 off your first four cleanings.
• American Family: American Family offers short-term rental insurance for those who rent out their homes for less than 62 days per year.
• American Modern: American Modern offers STR insurance to homeowners who rent out their homes for less than three months per year. 
• CBIZ: With CBIZ’s standalone short-term rental insurance, you can rent out your home for a few months out of the year.
• Erie: You can add a home-sharing endorsement to your Erie home insurance policy.
• Foremost: You can personalize your Foremost short-term rental policy with options like a landlord package, endorsements and your preferred settlement method for approved claims.
• Proper: With unique endorsements from Vrbo, Proper offers a four-in-one policy covering short-term rentals, personal use, occasionally unoccupied homes and long-term guests or tenants.
• USAA: Rental property insurance, specifically home sharing coverage‍, is available to USAA policyholders who rent out their homes for less than 30 days.

How much does short-term rental insurance cost?

How much does short-term rental insurance cost?

Several factors go into determining short-term rental premiums. The location of the property will play a significant role, as will the condition of your home. In general, most of the variables that impact homeowners insurance policy premiums will also affect a short-term rental policy.

These factors can include proximity to fire stations, crime rates in the area, your credit-based insurance score and the types of construction materials that were used to build your home. In general, renting your home (or a portion of it) is going to be viewed by insurance companies as a risk. Since insurance underwriting is based on risk, the premium that a company charges you will depend on the perceived risk of your specific rental situation.

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If you’re shopping around for a new home insurance policy and know you’ll need a short-term rental endorsement, consider these providers: Alternative options to protect your short-term rental

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 and have them sign a lease, 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 rather than a separate policy.

AirCover for Airbnb hosts

If you rent your property through Airbnb, you are automatically enrolled in its AirCover protection program. It is made up of two coverage types: host liability insurance and host damage protection. The liability portion of the policy has a $1 million limit and can help if you’re legally responsible for:

• Guest bodily injury 
• Theft of guest property 
• Damage to common areas, like a building lobby, caused by a guest

Host damage protection has a $3 million limit and can help with these costs:

• Damage to your belongings caused by guests
• Damage to parked cars, boats and other vehicles caused by guests
• Extra cleaning costs for pet accidents, stains, smoke odor removal or unapproved guests
• Loss of income if the property is made uninhabitable by previous guests

Host damage protection coverage does not include property damage from environmental factors such as mold, damage or injury from intentional actions or loss of earnings. But, if your paying guests invite more people over, you should be covered for damages caused by the invitees. If you need to file a claim, you must first contact Airbnb, which then puts you in touch with a third-party claims administrator.

Vrbo liability insurance 

Vrbo’s insurance is not meant to be a standalone policy, as the platform’s listing requirements specify that owners need to have sufficient existing coverage. However, if you are already insured and a Vrbo guest files a claim, Vrbo’s liability insurance offers an additional $1 million in coverage to homeowners.

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 be filed online.

Who should get short-term rental insurance?

Who should get short-term rental insurance?

If you have paying guests in your home, chances are you’ll need short-term rental insurance. Your home insurance policy won’t financially protect you when you use your home as a business (e.g., renting out all or part of your home for a short stay). 

Listing your home on Airbnb, Vrbo or a similar platform can be a nice way to earn some extra cash. But, it won’t be worth it if it leaves you financially vulnerable.

Frequently asked questions

Frequently asked questions about short-term rental insurance

If you use your home for a business purpose, like renting it out, a standard home insurance policy won’t cover you. Before you have any paying guests in your home, most insurance experts suggest having a short-term rental policy in place.

Does home insurance cover short-term rentals?

Condo insurance does not usually cover home sharing. Renting out your condo is considered a business endeavor, which is typically not covered by a condo (HO-6) policy. If you only rent out your condo every once in a while, or just rent out part of it, you’ll likely need short-term rental insurance. Or, if you rent out a condo you own to long-term tenants, landlord insurance would likely offer the financial protection you’re looking for.

Does condo insurance cover home sharing?

It depends on your coverage needs and budget. Ultimately, the best short-term rental insurance company for you will strike a balance between the coverage you need, your budget and your customer service preferences. If you’re more tech-savvy, a company with strong digital tools and a highly rated mobile app may be up your alley. Or, if you’d rather manage your home and short-term rental policy in one place, you may want to ask an agent if your current home insurance company offers any solutions.

What is the best company for short-term rental insurance?

You might be able to purchase short-term insurance from your current homeowners insurance provider as a standalone policy or endorsement. If the company doesn’t offer this coverage, you may want to request quotes from a different provider. If you’re unsure where to start, you can refer to our list of insurance providers or work with an insurance broker or agent.

How do I get short-term rental insurance? Methodology

Methodology

Rates

utilizes Quadrant Information Services to analyze July 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage limits:

40 year oldMarried male and female homeownersBrand name 2017 build yearPrimary homeBrand name $300,000 $30,000 $150,000 $60,000 $500,000 $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

If otherwise specified, the base profile has been modified with the following homeowner characteristics:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Dwelling coverage:

Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts. 

  Credit:

Rates were calculated based on the following insurance claims assigned to our homeowners: “fire ($80,000 in losses), liability ($31,000 in losses), theft ($5,000 in losses) and wind ($12,000 in losses).”

Claims:

Rates were calculated based on the following build years for homes and assigned to our homeowners: 1959, 1982, 1992, 2010, 2017 (base) and 2020.

Year built:

Rates were calculated based on the following deductible amounts: $1,000 (base), $1,500, $2,000 and $5,000.

Deductible

Score

• Tier 1 (Cost & ratings): To determine how well home insurance companies satisfy these priorities, our team analyzed average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC).
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.

Short-term rental insurance: what it is and who needs it Explore offers from trusted carriers

If you rent out your home on Airbnb, Vrbo or another home-sharing platform, you may not be fully covered by your home insurance policy. In fact, many insurance policies void coverage if you are using your home for a business purpose, like an Airbnb side hustle. To be fully financially protected while your home is occupied by paying guests, you may need a short-term rental (STR) endorsement or a standalone STR insurance policy. Short-term rental insurance, also called home-sharing insurance, adds extra liability coverage and financial protection for your personal belongings while your home is guest-occupied.

Short-term rental insurance: what it is and who needs it

Summary