If you’re renting out your vacation home or residence for short stays, whether through direct bookings or platforms like Airbnb, having short-term rental insurance for renters is essential. With guests navigating unfamiliar kitchens and bedrooms, hosts need protection against incidents like grease fires, plumbing issues, theft, and accidental injuries.
To help you choose the right insurance provider, we’ve reviewed 16 companies, assessing them based on price, coverage options, customer service, AM Best financial stability ratings, and National Association of Insurance Commissioners (NAIC) complaint rates. It’s important to note that coverage may vary by carrier, and policies might have different names. Here’s our list of top choices in seven categories, offering various benefits to meet your specific needs for short-term rental insurance for renters.
Best short term rental home insurance
When renting out your vacation home or residence for short-term stays, whether directly or through platforms like Airbnb, it’s crucial to have the right short-term rental home insurance. Standard homeowners’ insurance often doesn’t cover the unique risks associated with short-term rentals, such as liability for guest injuries or property damage. This is where short term house insurance becomes essential, offering tailored protection for hosts. Below, we explore the best insurance providers, highlighting their key features, coverage options, and overall value.
Proper Insurance
Proper Insurance offers one of the most comprehensive coverages in the market. It includes protection for the building and its contents, liability coverage, and business income loss if the property becomes uninhabitable. Proper Insurance is particularly tailored for Airbnb and VRBO hosts, ensuring that specific scenarios like loss of rental income are covered. Their customer service is highly rated, providing 24/7 claims service. The company’s financial stability is strong, with an A rating from AM Best, and it has a low complaint ratio according to the National Association of Insurance Commissioners (NAIC).
Pros: Comprehensive coverage tailored for short-term rental properties, including loss of rental income. High customer service ratings and low complaint ratio.
Cons: Higher premiums compared to standard homeowners insurance; may not be available in all states.
Coverage: Includes building and contents coverage, liability protection, and business income loss. It also offers protection against guest-related incidents.
Reviews: Customers frequently praise Proper Insurance for its specialized coverage and responsive claims service. Many users find peace of mind knowing their rental activities are fully covered.
Allstate HostAdvantage
Allstate HostAdvantage provides coverage for theft and damage caused by guests, as well as liability coverage. This option is available as an add-on to a standard homeowners insurance policy rather than a standalone policy. Allstate is known for its strong customer service, offering responsive support when needed. The company is financially stable, holding an A+ rating from AM Best, and it has a below-average complaint rate, indicating a generally positive customer experience.
Pros: Offers specific coverage for theft and damage caused by guests, available as an add-on to existing homeowners policies. Highly rated customer service.
Cons: Not a standalone policy; coverage might not be as comprehensive as some dedicated rental insurance options.
Coverage: Covers theft and damage caused by guests, as well as liability. Does not cover loss of rental income or damage to shared areas in multi-unit properties.
Reviews: Customers appreciate the convenience of adding coverage to their existing policy and the reasonable pricing. However, some note the limitations in coverage scope.
Liberty Mutual
Liberty Mutual offers a range of coverage options including property damage, liability, and personal property coverage. The company’s reputation for reliable and efficient claims processing makes it a solid choice for hosts. Liberty Mutual is financially stable, with an A rating from AM Best, and it also has a low complaint ratio. Their policies can be customized based on the property’s use and location, providing flexibility for different hosting scenarios.
Pros: Flexible coverage options that can be customized based on property use. Strong reputation for reliable and efficient claims processing.
Cons: Customization may lead to higher costs; some specific short-term rental coverages might require endorsements.
Coverage: Includes property damage, liability, and personal property. Can be tailored to cover specific rental situations.
Reviews: Generally positive, with customers citing the ease of making claims and the helpfulness of customer service. Some users feel the customization options are beneficial for their unique needs.
Farmers Insurance
Farmers Insurance provides comprehensive short-term rental coverage, including both liability and property damage. They are accessible with strong customer support ratings, making them a reliable choice for hosts who value good service. Farmers Insurance is rated A by AM Best and has a below-average complaint ratio. They also offer additional endorsements for more extensive protection, catering to various hosting needs.
Pros: Comprehensive coverage, including optional endorsements for additional protection. Good customer support and accessibility.
Cons: Premiums can be higher for more extensive coverage; not all features may be available in every state.
Coverage: Covers property damage, liability, and can include additional endorsements for more extensive protection, such as personal injury or equipment breakdown.
Reviews: Customers highlight the detailed coverage options and the company’s willingness to work with policyholders to customize their insurance. Some have found the premiums to be on the higher side but justified by the coverage quality.
Nationwide
Nationwide is another strong contender, offering property and liability coverage, including special perils. Nationwide has high customer satisfaction ratings, reflecting their strong customer service. The company holds an A+ rating from AM Best and maintains a low complaint ratio. They provide coverage for both primary and secondary residences used as rentals, making them versatile for hosts with multiple properties.
Pros: Strong financial stability and customer service. Offers coverage for both primary and secondary residences.
Cons: May not cover all types of rental arrangements, such as partial rentals or shared spaces.
Coverage: Includes property and liability coverage, along with special perils. Offers protection for both the structure and contents of the home.
Reviews: Nationwide receives high marks for its customer service and efficient claims process. Some users appreciate the clarity and simplicity of their policies, while others wish for more flexibility in coverage options.
State Farm
State Farm stands out for its customizable policies that cover property damage, liability, and guest injuries. They are known for high customer satisfaction, especially in claims handling. With an A++ rating from AM Best, State Farm demonstrates exceptional financial stability. The company’s below-average complaint ratio further underscores its reliability. They offer additional options for home-sharing scenarios, accommodating different types of short-term rental arrangements.
Pros: Highly customizable policies with excellent customer service. Known for high satisfaction in claims handling.
Cons: Coverage can be complex to navigate; additional costs for customization may apply.
Coverage: Covers property damage, liability, and guest injuries. Offers additional options for home-sharing scenarios and can include loss of rental income.
Reviews: State Farm is highly regarded for its customer service and the quality of its coverage. Customers often mention the helpfulness of agents and the ease of navigating claims.
Safeco
Safeco offers property damage and liability coverage, with the option to include loss of income coverage. They are known for providing personalized customer service, which can be crucial in managing unexpected issues. Safeco holds an A rating from AM Best and has a low complaint ratio. This company is ideal for hosts who rent out part of their homes and want to ensure they have appropriate coverage.
Pros: Offers optional loss of income coverage and personalized customer service. Known for competitive pricing.
Cons: Limited to certain areas and types of rentals; not all features may be available everywhere.
Coverage: Includes property damage and liability, with optional loss of income coverage. Ideal for partial home rentals.
Reviews: Customers generally appreciate the personalized service and the competitive pricing. Some have noted that the policy options can be somewhat limited depending on the location.
Comparison For Best Short Term Rental Insurance For Renters
| Insurance Provider | Coverage Options | Pros | Cons | Customer Reviews |
|---|---|---|---|---|
| Proper Insurance | Comprehensive, loss of income | Tailored for rentals, responsive claims | Higher premiums, limited availability | High satisfaction for specialized coverage |
| Allstate HostAdvantage | Theft, damage, liability | Easy add-on, good service | Not standalone, limited scope | Convenient and reasonably priced |
| Liberty Mutual | Property, liability, personal property | Customizable, reliable claims | Potential high costs for extras | Positive, helpful customer service |
| Farmers Insurance | Property, liability, optional endorsements | Detailed coverage, accessible | High premiums for full coverage | Customization praised, higher costs |
| Nationwide | Property, liability, special perils | Strong service, stable | Limited for partial rentals | High marks for service and clarity |
| State Farm | Customizable, includes loss of income | Excellent service, high satisfaction | Complexity, extra costs | Very positive, helpful agents |
| Safeco | Property, liability, loss of income | Personalized, competitive pricing | Limited features in some areas | Competitive, good service |
Airbnb Rental Insurance Coverage
Airbnb provides two main types of coverage for hosts under its Airbnb rental insurance options: the Host Guarantee and Host Protection Insurance. The Host Guarantee offers up to $1 million in property damage protection, which covers damages caused by guests to the host’s property. However, this coverage excludes certain items, such as cash, securities, pets, and personal liability, and does not cover loss of income or damages resulting from normal wear and tear. Additionally, Airbnb’s Host Protection Insurance provides up to $1 million in liability coverage, protecting hosts against third-party claims for bodily injury or property damage that occur during an Airbnb stay. This includes scenarios such as a guest getting injured on the property or causing damage to a neighbor’s property. However, it does not cover intentional acts, loss of earnings, or specific damages like pollution or mold.
Vrbo Rental Insurance
Vrbo offers similar protections under its Vrbo rental insurance options, including a $1 million liability insurance policy that covers third-party claims for bodily injury or property damage. This insurance is designed to safeguard hosts in situations where a guest might be injured on the property or if the guest causes damage to someone else’s property. In addition to liability insurance, Vrbo rental insurance includes optional Property Damage Protection. This allows hosts to purchase additional coverage for accidental damages caused by guests, with coverage levels typically ranging from $1,500 to $5,000.
FAQ short term rental insurance for renters
1. What is the difference between regular homeowners insurance and short-term rental insurance?
Regular homeowners insurance is designed to cover owner-occupied properties and typically includes protection for the structure, personal belongings, and liability in case of accidents. However, it often excludes coverage for activities like renting out the home, especially on a short-term basis. Short-term rental insurance, on the other hand, specifically caters to properties rented out temporarily. It provides coverage for risks associated with hosting guests, such as property damage caused by tenants, liability for injuries to guests, and loss of rental income due to covered incidents.
2. What specific coverages are provided by short-term rental insurance policies?
Short-term rental insurance policies usually offer a range of coverages, including:
- Property Damage: Coverage for damage to the rental property and its contents.
- Liability: Protection against third-party claims for bodily injury or property damage.
- Loss of Income: Compensation for lost rental income if the property becomes uninhabitable due to a covered event.
- Guest Medical Payments: Coverage for medical expenses if a guest is injured on the property.
- Legal Expenses: Coverage for legal costs associated with liability claims.
3. Does my regular homeowners insurance automatically cover short-term rentals?
Typically, regular homeowners insurance does not automatically cover short-term rentals. Many policies exclude coverage for commercial activities, including renting out the property. It’s crucial to check with your insurance provider to understand the specifics of your policy. You may need to purchase additional coverage or a separate short-term rental insurance policy to ensure adequate protection.
4. How do insurance companies assess the risk of short-term rentals?
Insurance companies assess the risk of short-term rentals by considering several factors, including the location of the property, the frequency of rentals, the number of guests, the type of property, and any amenities offered (such as pools or hot tubs). They may also consider the host’s experience and any safety measures in place, like smoke detectors or security systems. Properties with a history of claims or located in high-risk areas may face higher premiums.
5. What information do I need to provide to insure a property for short-term rental purposes?
To insure a property for short-term rental purposes, you’ll typically need to provide the following information:
- The address and details of the property
- The duration and frequency of rentals
- The anticipated number of guests
- Details of safety features and security measures
- A history of any previous claims or incidents
- Information about any additional amenities or structures on the property
6. Does the insurance cover damages caused by guests during their stay?
Yes, short-term rental insurance generally covers damages caused by guests during their stay. This includes accidental damage to the property or its contents. However, coverage may vary depending on the policy and provider, and certain exclusions may apply. It’s important to review the policy details to understand what is covered.
7. What are typical exclusions in short-term rental insurance policies?
Typical exclusions in short-term rental insurance policies may include:
- Intentional or criminal acts: Damages caused intentionally by the host or guests.
- Normal wear and tear: Deterioration of the property over time due to regular use.
- Business-related activities: Activities unrelated to the short-term rental, such as hosting large events or parties.
- Certain perils: Some policies may exclude specific perils like floods or earthquakes unless additional coverage is purchased.
8. How does liability coverage work for short-term rentals?
Liability coverage for short-term rentals protects the host against third-party claims for bodily injury or property damage that occur during a guest’s stay. For example, if a guest slips and falls on the property, liability coverage can help cover medical expenses, legal fees, and any settlements or judgments. It’s an essential aspect of short-term rental insurance, providing financial protection against lawsuits and claims.
9. Are there specific geographical or other restrictions for short-term rental insurance?
Yes, there can be geographical and other restrictions for short-term rental insurance. Some insurance providers may not offer coverage in certain areas, especially those prone to natural disasters or high crime rates. Additionally, restrictions may apply based on the type of property (e.g., condos, single-family homes), the duration of rentals, or the type of guests (e.g., families vs. large groups). It’s essential to check with the insurance provider to understand any specific restrictions or limitations.
10. What are the steps to take in case of a claim involving a short-term rental?
In case of a claim involving a short-term rental, follow these steps:
- Document the Damage or Incident: Take photos and gather evidence of the damage or incident, including any relevant details.
- Notify the Authorities: If necessary, report the incident to the local authorities, especially in cases involving theft, vandalism, or injury.
- Contact Your Insurance Provider: Report the claim to your insurance provider as soon as possible. Provide all necessary information and documentation.
- Assist in the Investigation: Cooperate with the insurance provider’s investigation, providing any additional information or access to the property as needed.
- Follow Up: Keep in touch with your insurance provider to track the progress of your claim and understand the next steps.
