%20--%3e%3cg%3e%3cg%20id='Logotype'%3e%3cg%3e%3cpath%20fill='%23141313'%20d='M46.37,250.9L136.63,28.98H0v237.25C0,296.87,21.93,318.83,52.56,318.83v-.03h160.64v-154.45l-156.9,95.23c-5.8,3.71-12.82-2.05-9.94-8.68Z'/%3e%3cpath%20fill='%23141313'%20d='M347.35,104.3c-68.33,0-115.93,44.71-115.93,108.91s47.6,108.9,115.93,108.9,115.93-44.72,115.93-108.9-47.6-108.91-115.93-108.91ZM347.35,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M633.86,118.01c0,3.31-3.71,3.31-7.02,1.66-18.22-9.54-32.29-15.3-53-15.3-56.71,0-95.62,42.66-95.62,108.08s39.32,109.7,93.14,109.7v-.03c21.93,0,35.61-7.02,56.31-19.87,3.71-2.48,8.28-1.66,6.19,3.71l-5.36,12.85h86.51V28.98h-81.15v89.03ZM594.11,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1406.03,107.65l-23.58,112.61c-1.66,8.68-11.59,9.11-13.65-.4l-24.84-112.22h-94.79c-39.32,0-51.74-11.99-51.74-29.81s10.33-28.15,27.72-28.15c20.27,0,30.64,16.16,32.69,32.29h79.5C1325.35,29.38,1286.43,0,1230.52,0,1168.85,0,1130.32,36.04,1130.32,91.09v16.56h-44.71v67.07h44.71v144.08h81.15v-143.68h70.23l46.53,124.21c3.31,8.28,2.88,17.39-.4,26.1l-28.55,68.73h80.25l120.47-286.51h-93.97Z'/%3e%3cpath%20fill='%23141313'%20d='M886.41,117.98c0,3.31-3.71,3.31-7.02,1.66-19.87-9.94-34.35-15.3-54.65-15.3-60.45,0-93.97,49.29-93.97,107.65,0,64.59,37.26,98.54,87.77,98.54,23.19,0,40.57-7.02,62.1-19.47,5.37-3.31,9.51-.4,7.45,4.57-9.11,20.7-28.55,31.47-59.62,31.47h-83.2v67.07h98.5c72.04,0,123.78-47.63,123.78-114.67V107.65h-81.15v10.33ZM846.67,255.04c-24.41,0-42.23-17.39-42.23-41.8s17.79-41.83,42.23-41.83,42.23,17.39,42.23,41.83-17.79,41.8-42.23,41.8Z'/%3e%3cpath%20fill='%23141313'%20d='M1026.35,18.18c-26.1,0-44.71,16.16-44.71,39.35s18.61,39.35,44.71,39.35,44.72-16.16,44.72-39.35-18.62-39.35-44.72-39.35Z'/%3e%3crect%20fill='%23141313'%20x='985.78'%20y='107.65'%20width='81.15'%20height='211.15'/%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
What is Property Insurance?
Property insurance is a type of policy that provides financial reimbursement to the owner of a structure and its contents in the event of damage or theft. For vacation rentals, this policy specifically covers the building, fixtures, and personal property owned by the host, distinguishing it from standard homeowner's insurance which may not cover commercial activities.
It is designed to protect against specified perils such as fire, storms, theft, and vandalism.
Join the Lodgify newsletter
How it works
A property owner selects a policy from an insurance provider and pays regular premiums to keep it active. This policy outlines the scope of coverage, including the specific perils covered, the maximum coverage amount (limit), and the deductible the owner must pay out-of-pocket for a claim.
When a covered incident occurs, like a storm damaging the roof, the host files a claim. An adjuster assesses the damage, and if approved, the insurer issues a payment for the repair or replacement costs, minus the deductible.
Why it matters
Property insurance provides a crucial financial safety net against unforeseen events that could otherwise cause catastrophic financial loss for a vacation rental owner. Without it, hosts are personally responsible for all repair and replacement costs following damage to their property.
Furthermore, many mortgage lenders require this coverage, and it is often a legal prerequisite for obtaining a short-term rental license in many jurisdictions. For practical guidance, see Lodgify’s Best Short-Term Rental Insurance Companies.
Examples
- A severe hailstorm damages the roof and breaks several windows of a vacation cabin. The owner's property insurance covers the cost of the new roof and window replacements, minus their deductible.
- During a vacant period between guests, a pipe bursts in a condo, causing extensive water damage to the flooring and kitchen cabinets. The landlord's property insurance policy covers the remediation and restoration costs.
- A fire starting from faulty wiring in a beach house causes structural damage and destroys the owner's furniture and appliances. The policy covers rebuilding the damaged section and replacing the lost personal property.
Frequently asked questions
Is my standard homeowner's insurance sufficient for my vacation rental?+
What is the difference between property insurance and liability insurance?+
Does property insurance cover damage caused by guests?+
Does protection from an OTA like Airbnb's AirCover replace my own insurance?+
Related terms
Short-Term Rental Insurance
Short-term rental insurance is a specialized insurance product designed to cover the unique risks associated with renting out a property to guests for brief…
Public Liability Insurance
Public liability insurance is a type of coverage that protects vacation rental owners from legal and financial responsibility if a third party, such as a guest…
Damage Policy
A damage policy is a set of rules outlining a guest's financial responsibility for any damages they cause to a vacation rental property or its contents during…
Security Deposit
A refundable sum collected from a guest before check-in to cover potential damages, excessive cleaning, or rule violations during their stay.