%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 Short-Term Rental Insurance?
Short-term rental insurance is a specific type of property and liability insurance tailored for hosts renting out their homes on a transient basis, such as through platforms like Airbnb or Vrbo. Unlike a standard homeowner's policy, which often excludes coverage for commercial activities, this insurance addresses the risks inherent in the hospitality business.
It is designed to protect the host's financial interests against claims arising from guest-related incidents.
Join the Lodgify newsletter
How it works
A property owner or manager purchases a short-term rental insurance policy from a specialized provider. These policies can be structured as stand-alone commercial policies or as an endorsement added to an existing homeowner's policy.
When a covered event occurs—such as a guest being injured on the property or causing significant damage—the host files a claim with the insurance company. The insurer then investigates the claim and, if it is approved, provides financial compensation for the covered loss, minus the policy's deductible.
Why it matters
This specialized insurance is critical because most standard homeowner's or landlord policies contain a 'business exclusion clause,' which voids coverage for commercial activities like short-term renting. Without a dedicated STR policy, hosts are personally liable for guest injuries, property damage, and potential legal fees, which can jeopardize their investment and personal assets.
It provides essential financial protection and peace of mind by filling a significant coverage gap. For practical guidance, see Lodgify’s Best Short-Term Rental Insurance Companies.
Examples
- A guest slips on a wet patio, breaks their leg, and sues the property owner for medical expenses. The host's short-term rental liability coverage helps pay for legal defense costs and the final settlement.
- During their stay, a group of guests throws an unauthorized party, resulting in extensive damage to furniture, walls, and flooring. The host's STR policy covers the repair costs that exceed the security deposit.
- A small kitchen fire makes the rental property uninhabitable for a month during peak season. The loss of rental income coverage on the policy reimburses the host for the revenue lost from canceled bookings during the repair period.
- A severe storm causes a tree to fall on the rental, damaging the roof while guests are staying there. The policy not only covers the cost of repairing the roof but may also cover the cost of relocating the guests.
Frequently asked questions
Isn't my standard homeowner's insurance policy enough for a short-term rental?+
What about the host protection programs offered by OTAs like Airbnb or Vrbo?+
What does short-term rental insurance typically cover?+
Is insurance the same as damage protection or a security deposit?+
Related terms
Damage Protection
Damage protection is a product, often in the form of an insurance policy or a waiver, that covers the cost of accidental damage caused by guests, serving as an…
Security Deposit
A refundable sum collected from a guest before check-in to cover potential damages, excessive cleaning, or rule violations during their stay.
Rental Agreement
A rental agreement is a legally binding contract between a property owner or manager and a guest. It outlines the terms, conditions, and rules for a short-term…
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…