Securing Short-Term Rental Insurance: Navigating The Path To Comprehensive Coverage

Short-term rental insurance is a type of insurance that covers your property and liability while your home is being rented out by guests. This type of insurance is ideal for homeowners who are offering temporary housing to paying guests. It is important to note that most standard homeowners insurance policies do not cover short-term rentals, so you may need to purchase an endorsement, rider, or separate policy for short-term rental insurance. This type of insurance can protect you from financial losses in the event of damage to your property, theft, or injury to your guests. When obtaining short-term rental insurance, you can check with your current home insurer to see if they offer a policy or endorsement/rider, or explore other home insurance companies to compare prices and coverage.

Short-term rental insurance for homeowners

Short-term rental insurance is a type of insurance that covers your property and your potential liabilities while renters are staying in your home. It is generally only needed if you have paying guests in your home. Most standard homeowners insurance policies will cover non-commercial guests who are visiting your residence.

Short-term rental insurance is designed to cover your property and liability exposure while your home is being rented out by guests. For example, if a paying guest injures themselves and sues you, your short-term rental insurance’s liability coverage will help protect you financially.

Most homeowners insurance policies do not offer short-term rental insurance without an endorsement or separate policy coverage. Many insurance companies offer short-term rental insurance as an endorsement or rider, meaning that the coverage is added onto your current homeowners insurance policy. However, some companies may require that you obtain a separate policy to cover your short-term rental.

Short-term rental insurance includes several types of coverage. Policy details can differ, but standard short-term rental insurance usually covers:

• Guest liability insurance
• Property insurance
• Theft and burglary

When shopping for short-term rental insurance, you can check with your current home insurer to see if it offers a policy or endorsement/rider. If you are unable to get coverage from your current carrier, explore other home insurance companies to compare prices and coverage. Engaging your insurance agent may also be beneficial in this process.

Short-term rental insurance for renters

If you're renting out your home on a short-term basis, you may need short-term rental insurance. This is because short-term rentals are considered business use of a house, which is usually excluded from homeowners insurance coverage.

Short-term rental insurance is designed to cover your property and liability while your home is being rented out by guests. For example, if a paying guest injures themselves and sues you, your short-term rental insurance’s liability coverage will help protect you financially.

If you're a renter, you should check your lease agreement to see if your landlord prohibits subletting. If subletting is allowed, you should then check your renters insurance policy to see if it covers short-term rentals. If not, you may need to purchase a separate policy.

When shopping for short-term rental insurance, you can check with your current home insurer to see if they offer a policy. If not, you can explore other home insurance companies to compare prices and coverage.

• Allstate: Allstate’s HostAdvantage home-sharing insurance offers a Merry Maids discount, with $25 off your first four cleanings.
• Farmers: Geared toward landlords, Farmers’ policy offers tenant screening reports through SmartMove, where the cost of the service can be passed on to renters.
• 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.
• Nationwide: For occasional short-term rentals, Nationwide offers an endorsement or rider to your existing homeowners or condo policy.
• Progressive: Progressive’s landlord policy covers lost rental income due to a covered loss.
• Proper: With unique endorsements from Vrbo, Proper offers a 4-in-1 policy covering short-term rentals, personal use, occasionally unoccupied homes and long-term guests or tenants.
• American Family: With coverage for up-to two months, American Family offers short-term rental insurance for people leaving home for a season or less.

Insurance for short-term guests

If you are a short-term guest, you may be wondering what insurance you need when staying in someone else's home. Here is what you need to know:

• There are no insurance policies specifically designed for short-term guests paying to stay in someone's home or rental unit.
• However, your personal property is typically covered by the homeowner's or renter's insurance policy, up to a certain limit.
• Liability protection is also included as part of the homeowner's or renter's insurance policy. This covers any damage you may cause to the rented property, but only against specific perils, usually fire, smoke, or explosion.
• If you have an umbrella policy, this may provide extended coverage, but it is best to check with the insurance agent.
• The only insurance policy you might consider purchasing for your stay is travel insurance. Most travel insurance policies will not cover your personal property or provide liability protection, but they can cover trip cancellations and reimburse you for accommodation expenses such as a deposit or short-term lease.

Insurance for 30-day stays or longer

If you're planning to stay in a rental property for 30 days or longer, you'll need to consider a different type of insurance than short-term renters. Here's what you need to know about insurance for longer stays:

For Renters

If you're renting a property for more than 30 days, you're no longer considered a short-term guest. In this case, you'll need to purchase a traditional renters insurance policy. This type of policy will protect you in case of damage to the rental property or loss of your personal belongings during your stay. Renters insurance is relatively inexpensive and can usually be cancelled if your plans change. The average renters insurance premium in the US can be as low as $12 per month.

When purchasing renters insurance for a long-term stay, keep in mind that some insurance companies may require a minimum policy length of six months. However, there are companies that offer policies for shorter periods, so be sure to shop around to find the best option for your needs. Additionally, be aware that cancelling a policy with a one-year term before it expires may result in fees or a loss of prepaid premiums.

For Homeowners

If you're renting out your home to long-term guests, you'll likely need to purchase a landlord endorsement or a separate landlord insurance policy. Landlord insurance is designed for long-term rentals and provides coverage for damage to the property, loss of rental income, and liability protection in case a guest is injured on your property.

When choosing a landlord insurance policy, consider factors such as the location and condition of your property, as these can impact the cost of the policy. It's also important to understand the coverage limits and exclusions, as well as any additional endorsements or riders that may be required to ensure adequate protection.

Travel Insurance for Long-Term Trips

If you're planning to travel for an extended period, consider purchasing long-stay travel insurance. This type of insurance covers trips lasting longer than a month, usually up to 12 or 18 months. It includes emergency medical treatment, cancellation coverage, and protection for lost, stolen, or damaged possessions.

When choosing long-stay travel insurance, pay attention to factors such as your age, health, destination, and planned activities. These can impact the cost and coverage of your policy. Additionally, be sure to declare any pre-existing medical conditions to ensure you're covered in case of a medical emergency during your trip.

How to get short-term rental insurance

Short-term rental insurance is a must-have for homeowners who are renting out their property to paying guests. This type of insurance is designed to cover your property and liability while your home is being rented out. It is important to note that standard homeowners insurance policies typically do not cover short-term rentals, so you may need to purchase additional coverage. Here's a step-by-step guide on how to get short-term rental insurance:

Step 1: Understand Your Needs

Before purchasing short-term rental insurance, it's important to assess your specific needs. Consider the frequency of rentals, the duration of each rental, and the level of coverage required. If you only rent out your property occasionally or for short periods, you may not need as comprehensive a policy as someone who rents out their property frequently or for extended periods.

Step 2: Check with Your Current Insurer

The first step in obtaining short-term rental insurance is to check with your current home insurance provider. Some insurance companies offer short-term rental coverage as an endorsement or rider that can be added to your existing homeowners insurance policy. Contact your insurance company to inquire about their short-term rental insurance options and to understand the extent of their coverage.

Step 3: Compare Quotes from Different Companies

If your current insurer does not offer short-term rental insurance, or if you are not satisfied with their coverage options, it's time to explore other providers. National and regional property insurers that offer short-term rental insurance include Allstate, Farmers, Foremost, Nationwide, Progressive, Proper, and American Family. Compare quotes from these companies to find the best coverage and price for your needs.

Step 4: Consider Alternative Options

In addition to short-term rental insurance, there are alternative options to protect your rental property. Home-sharing services like Vrbo and Airbnb offer their own host protection insurance, which provides liability coverage and protection against property damage. However, this may not be sufficient, and they recommend purchasing additional insurance. Another option is landlord insurance, but this is typically designed for long-term rentals, and some insurance companies may not offer it if you plan to have frequent short-term tenants.

Step 5: Purchase the Policy

Once you've compared quotes and found the best option for your needs, it's time to purchase the policy. You can often apply for a quote and purchase the policy online, or you can speak to a live agent to guide you through the process. Make sure to read the policy documents carefully to understand what is covered and what exclusions may apply.

By following these steps, you can obtain short-term rental insurance that provides the necessary coverage for your rental property and gives you peace of mind.

Frequently asked questions