State Farm Short-Term Rental Insurance Review [2024]

Discover how State Farm can be your short-term rental's safety net and why it's a must-have in today's unpredictable rental market.

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Are you constantly worrying about the safety of your Airbnb or vacation rental property? Are you looking for insurance to cover your rental?

State Farm offers a solution tailored for you.

Discover how this insurance can be your safety net and why it’s a must-have in today’s unpredictable rental market.

Read our comprehensive State Farm short-term rental insurance review.

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What is the State Farm Short-Term Rental Insurance?

State Farm started back in 1922, thanks to George J. Mecherle. It began as a car insurance company for its members. Now, it’s the biggest property and car insurance company in the U.S. In this guide, we’re focusing on their rental insurance.

They’ve got special policies for rental places like houses and condos. These plans can:

  • protect your property
  • cover you if someone makes a claim against you
  • help with lost rent if something big happens. 

This is really important if you depend heavily on rent money.

Note: In May 2023, State Farm made a big change. They stopped offering new home insurance in California. This strategic move was prompted by the escalating wildfire risks in the region and the rising construction costs. 

State Farm Short-Term Rental Insurance Features

Let’s dive into the world of State Farm’s rental property insurance. Think of it as a safety net, intricately woven to catch you when the unexpected happens. 

State Farm isn’t just about covering your rental homes; it’s about giving you peace of mind. So, what’s in this safety net? Let’s unpack it. 

Here are the three types of rental property insurance that State Farm offers:

Rental Homes

Imagine this: A storm hits, and your rental property takes a beating. Or a small mishap leads to a liability claim. 

Stressful, right? 

Here’s where State Farm steps in. 

Their rental dwelling policy is like a superhero cape for your property. It helps cover property damage and liability claims and even compensates for lost rental income if your property gets damaged by something covered in your policy.

What is covered:

This policy covers the following:

  • Dwelling Coverage: Think of this as the fortress wall protecting your rental dwelling. If disaster strikes, this coverage helps pay for repairs or rebuilding, including other structures on your property.
  • Personal Property Coverage: This one’s like a safety net for the stuff inside your rental. Furniture, appliances, and other personal items? Covered.
  • Loss of Rents Coverage: If your rental becomes uninhabitable due to a covered loss, this coverage steps in like a reliable friend, reimbursing you for the rent you’re missing out on.
  • Liability Coverage: It’s your financial shield. If someone sues you over an incident at your property, this coverage has your back.

What’s not covered?

Not everything’s covered, though. 

Continuous water leakage, flood damage, earthquakes, wear and tear, and, unfortunately, your pesky rodent neighbors aren’t on the list. 

It’s like having an umbrella that doesn’t cover you in a hurricane – useful, but with limits.

Discounts and other helpful details

  • Home Alert Discounts: Got a fancy alarm system? Cha-ching! You may qualify for a discount.
  • Inflation Coverage: As prices go up, so does your coverage.
  • Replacement Cost Dwelling Coverage: This is the big one. It’s not just about fixing; it’s about replacing. If your rental needs a rebuild, this coverage is like having a construction team on speed dial, ready to restore it up to a set limit.

Condo Units

Now, let’s zoom in on State Farm’s rental condo unit owners policy.

What’s covered?

Kinda similar to rental homes’ policy, the condo unit owners policy offers:

  • Building Property Coverage: This is like a safety blanket for the parts of your condo you’re responsible for. Wall finishes looking sharp? Floor coverings feeling plush? Fixtures, alterations, and appliances all in top shape? This coverage ensures they stay that way.
  • Personal Property Coverage: Picture this: Your condo’s furnished to the nines, but then, something unexpected happens. This coverage steps in to handle losses to your personal property, keeping your condo’s charm intact.
  • Loss of Rents Coverage: If your condo becomes a no-go zone due to a covered loss, this part of your policy ensures you’re not out of pocket on the rent you’d normally collect.
  • Liability Coverage: It’s your financial safeguard. If someone decides to sue over an incident at your condo, this coverage is your knight in shining armor.

What’s not covered?

Just like any good thing, there are limits. Flood or underground water damage, earthquakes, landslides, and the usual suspects like wear and tear or those uninvited critter guests (yes, birds and rodents) aren’t covered.

Discounts and other helpful details

  • Home Alert Discounts: Got a smart alarm system? Good news – you might snag a discount. And if you’re eyeing a new home monitoring system, State Farm has special offers just for you.
  • Inflation Coverage: As the cost of living climbs, so does your coverage. It’s like your policy’s keeping up with the times, ensuring you’re always adequately covered.
  • Loss Assessment Coverage: This one’s a bit of a group effort. If there’s an assessment against all unit owners for property damage or other liabilities, this coverage chips in for your share.

Apartment Owners

State Farm’s apartment owner insurance is tailored for landlords, offering a customizable package to meet unique needs. 

It starts with essential coverages and allows for personalization, ensuring comprehensive protection at competitive rates. 

Key coverages include: 

  • building property protection for the apartment and associated structures
  • liability coverage for injuries on the property
  • loss of income insurance for rental disruptions due to property damage

Additional protections include:

  • equipment breakdown
  • tenant relocation expenses
  • heating or air conditioning failure reimbursement

The package also includes extra coverages for broader security. 

Data compromise and identity restoration help you recover from data breaches or identity theft. Ordinance or law coverage deals with additional costs for building upgrades following municipal law changes after a claim. 

Life insurance and buy-sell agreements are suggested for landlords with partners, enhancing the overall safety and management of property-related businesses.

Pricing 

State Farm’s short-term rental insurance policy is competitively priced and offers a variety of coverage options to fit your needs. They do not offer a free trial or demo, but you can get a quote online or by contacting a local agent.

Keep in mind that your actual yearly premium costs can differ. This variation depends on the coverage you choose, the coverage amounts, deductibles, and other influencing factors.

For more specific information, it’s best to contact State Farm directly or visit their website.

Alternatives

Proper Insurance

If you’re an Airbnb or VRBO host looking for top-notch insurance coverage, let me introduce you to Proper Insurance. 

Proper Insurance - best insurance for vacation rentals

They’re not just any insurance company; the prestigious Lloyds of London backs them and comes highly recommended by Airbnb and VRBO themselves. 

What sets Proper Insurance apart is its laser focus on short-term rentals. They’re experts in this niche, having crafted over 50,000 policies across all 50 states in the U.S. 

Whether you own a vacation home, townhouse, condo, duplex, cabin, cottage, or apartment, they’ve got you covered. 

And the best part?

They tailor policies specifically for your short-term rental property.

Now, let’s talk about their coverage. It’s nothing short of comprehensive. We’re talking top-tier protection for host liability, amenity liability (think bikes, kayaks, hot tubs, and the like), theft, vandalism, and even those pesky issues like bed bugs and squatters. 

It’s arguably the most thorough policy you’ll find in the market.

Curious to see how Proper Insurance can safeguard your rental? You can snag a free quote in just 5 minutes. And for a deeper dive into what they offer, check out our detailed Proper Insurance review. 

Ready to explore more? Visit their website at Proper Insurance or head on to our review.

CBIZ

Let’s talk about CBIZ, one of the top vacation rental property insurance providers today. 

CBIZ vacation rental home page

Since 2002, they’ve been at the forefront of insuring short-term rental properties, earning them the title of “the largest insurer of short-term vacation rental properties in the United States.” Operating in all 50 states, CBIZ has not only experience but also a widespread presence.

What really sets CBIZ apart is its approach to crafting insurance solutions. They collaborate with top-rated carriers to offer a diverse range of property insurance coverages, each meticulously tailored to meet the unique challenges and risks associated with owning a vacation rental property. With over 20 years in the game, their deep understanding of the vacation rental market is unmatched.

But it’s not just their insurance expertise that makes CBIZ stand out. 

They’re known for their crystal-clear communication, steering clear of confusing technical jargon, and providing personalized customer service. This approach ensures that you, as a property owner, get comprehensive protection that safeguards both your property and your income.

Choosing CBIZ means partnering with a company that has your back regarding your vacation rental property needs. 

Interested in learning more about what they offer? 

Head over to their website at CBIZ Vacation Rental Insurance and discover how they can help secure your investment.

Conclusion

In summary, State Farm’s Short-Term Rental Insurance offers a comprehensive and customizable solution for various rental property owners. 

Whether you own a rental home, condo unit, or apartment building, State Farm provides tailored coverage to protect your investment, income, and liability. This insurance is ideal for those seeking a policy that adapts to their specific needs, offering peace of mind with a range of coverage options.

State Farm Short-Term Rental Insurance Pros

  • Customizable policies tailored to different property types.
  • Coverage includes property damage, liability, and loss of rental income.
  • Options for inflation and loss assessment coverage.

State Farm Short-Term Rental Insurance Cons

  • Certain natural disasters and damages (like floods and earthquakes) are not covered.
  • Limitations on coverage for wear and tear and damage from pests.
  • May not be the most cost-effective option for all landlords.

If you’re in the market for rental property insurance that’s flexible and comprehensive, State Farm is a solid choice. However, it’s crucial to weigh the pros and cons based on your specific needs. 

For a broader view of your options and to find the best fit for your rental property, read our top picks on the best vacation rental insurance companies.

Get a comprehensive vacation rental insurance quote in 3 minutes.

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