Short-Term Rental Insurance

Why you need it and where to find it

Host welcomes short term renters in her apartment. Find short term rental insurance.

You may have a beautiful rental that you can't wait to host the public in. But along with the pride and profits also comes a risk of perils. Unfortunately your guests may not leave your place in the same condition they found it, which could create big problems for you without the right coverage.

If you're renting out your home or other property for any length of time, you need to make sure you’re protected. Our independent insurance agents will help you find the right short-term rental insurance coverage to protect your property from disrespectful or accident-prone guests.

What Is Short-Term Rental Insurance?

Basically, short-term rental insurance is a specialty coverage or endorsement that’s added to a homeowners insurance policy to protect you, your renters, and each party's personal belongings from damage due to a number of causes. Short-term rental insurance only applies if you'll be renting out a property for a term that your insurance company considers to fall within that category.

If you're renting out your property for six months or more, you'll need a different coverage like landlord insurance or rental dwelling coverage. Further, if you plan to turn your property into a short-term rental on a regular basis, this would constitute a business and need a different policy entirely such as hotel insurance, or bed and breakfast insurance.

What Does Short-Term Rental Insurance Cover?

Short-term rental insurance covers potential disasters that may extend beyond obvious examples. Your paying guests may even cause an insect infestation or attempt to steal your identity. Luckily, short-term rental insurance can cover many risks.

Here is what short-term rental insurance covers

  • Your belongings: Coverage includes property damage to or theft of your personal belongings stored on the premises by your renters.
  • Liability: Coverage includes reimbursement for legal costs if you get sued by your renters for claims of bodily injury or personal property damage while staying at your residence.
  • Dwelling damage: Coverage includes property damage to the dwelling or structure of your home or other rented property caused by fire, vandalism, etc.

These are just the basic coverages provided by many short-term rental endorsements. An independent insurance agent can help you add an extra coverages that you may need.

How Popular Are Short-Term Property Rentals?

You might be surprised by just how many folks choose to rent out their property on a short-term basis. Check out the chart below and see for yourself.

Number of short-term rental home sharing users in the US (in millions)

Over the past five years, the number of short-term rental home sharing users has increased significantly. At the beginning of the observed period, 58.1 million folks reportedly stayed in home sharing rentals. In the next couple of years, this number is expected to jump to 68.2 million users.

With short-term rentals in shared homes being an ever-growing economy, it's crucial for all participants to have the proper coverage secured from the start.

Is Short-Term Rental Insurance Mandatory?

Short-term rental insurance isn't mandatory by law, but it's a crucial coverage if you'll be allowing renters to stay on your property. Without the right extra coverage or endorsement, you could be stuck paying repair or replacement costs out of your own pocket if your guests cause damage. You might also find yourself on the wrong side of a lawsuit filed against you by your guests if they claim to have been harmed by/on your property.


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Does Homeowners Insurance Cover Short-Term Renting?

Your homeowners insurance most likely will not cover property damage or liabilities arising from a short-term rental situation. Standard homeowners policies often have exclusions about renting in general. That's why it's important to work with an independent insurance agent to find the right coverage to protect yourself and your property if you decide to rent it out.

Why Do You Need Short-Term Rental Insurance?

Short-term rental insurance is required to protect your home or other property if you choose to rent it out for what your insurance company considers a short amount of time. If you rent your home through a service like Airbnb, the coverage provided by that platform isn't enough to protect you. Your home insurance also doesn't provide enough coverage to protect you from renters' damage.


This year, there are more than 2.9 million hosts on Airbnb worldwide.

Airbnb is growing in popularity as time goes on, and experienced a 40% growth within the past three years alone. Further, Airbnb accounts for just a small overall percentage of short-term rental properties. Short-term rental coverage is important to protect hosts from fires, theft, guest injuries, plumbing breaks, and more.

Who Uses Short-Term Rental Insurance and Why?

Property owners who choose to rent out all or part of their property to paying guests use short-term rental coverage to protect themselves in a myriad of ways. Here are just a few common examples of short-term rental insurance in action.

  • Reimbursement for renter-caused property damage: Whether it's accidental or malicious vandalism, short-term rental insurance can cover costs of property damage caused by your renters.
  • Reimbursement for theft by renters: If your renters steal your belongings, other property, cash, etc., short-term rental insurance can help recover the cost.
  • Reimbursement for bed bugs brought by renters: If you have the unfortunate experience of renting to folks who bring bed bugs into your home or other property, luckily short-term rental insurance can help cover the costs of treatment.
  • Reimbursement for injuries caused to the renters by your pet: In case your renters get injured or have their belongings damaged by a pet on your property, fortunately short-term rental coverage often includes pet liability.

These are just a few examples of how short-term rental insurance can protect you after a disaster. An independent insurance agent can provide many more. 

How Much Does Short-Term Rental Insurance Cost? 

The cost of short-term rental coverage will depend on a number of factors. For starters, it will depend on if you need separate coverage or can add it to your home insurance as an endorsement. 

Short-term rental endorsements can be as low as $4 per month for about $10,000 worth of coverage for your personal belongings. An independent insurance agent can help you find exact quotes for short-term rental coverage in your area.

Who Sells Short-Term Rental Insurance?

Short-term rental insurance is available from many different insurance companies, and the best way to find the right carrier for you is through working with an independent insurance agent.

Though many insurance companies could offer short-term rental coverage for you, finding it could also depend on the area you live in. Here are a few of the top companies for short-term rental coverage.

Top companies for short-term rental coverage Star Rating
4.5/5 star rating
5 star rating
American Family
4.5/5 star rating
4.5/5 star rating

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Why Are Independent Insurance Agents Awesome?

It’s simple. Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print, so you know exactly what you’re getting.

Independent insurance agents also have access to multiple insurance companies, ultimately finding you the best short-term rental coverage, accessibility, and competitive pricing while working for you.

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