The Best Vacation Rental Insurance Companies for 2024

Having supplemental vacation rental insurance is a good idea even if you're listing on Airbnb or Vrbo, and it's a necessity if you plan to take direct bookings. Here are the best options.

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Many short-term rental owners wrongly assume that their homeowner’s insurance policy covers their vacation rental property. But most often, this is not the case.

If you’re renting out your home to temporary guests, it’s likely that your homeowner’s insurance policy doesn’t cover that activity. So, it’s important to make sure you are protected against property damages and personal liability with a vacation rental insurance plan.

If you’re booking your property through Airbnb or VRBO, you are covered by their host protection plans. But even then, it’s safer to have your own short-term rental insurance policy.

And if you want to take direct bookings, through your own direct booking website or otherwise, you will need your own short-term rental insurance coverage.

Learn how to protect your property and peace of mind. Our guide offers a comprehensive overview of the best vacation rental insurance companies available.

The Top 6 Best Vacation Rental Insurance Companies

  1. Proper Insurance: Best for Comprehensive Coverage
  2. CBIZ: Best for Pioneering Short-Term Rental Insurance
  3. Safely: Best for Guest Screening
  4. Foremost Insurance: Best for Flexible Insurance Plans
  5. Allstate HostAdvantage: Best for Established Insurance Reputation
  6. American Family: Best for Budget-Friendly Options

In response to the growth of the short-term vacation rental industry, there are more and more insurance companies offering coverage for homeowners who rent out their homes through Airbnb, VRBO, Booking.com, and other similar sites.

Here are the best companies to consider when you’re looking for short-term rental insurance policies.

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1. Best for Comprehensive Coverage: Proper Insurance

Proper Insurance - Short-term rental insurance company

Proper Insurance is backed by Lloyds of London, and they are endorsed by Airbnb and VRBO. They’re a legitimate, established insurance company that focuses exclusively on short-term rentals, making them a popular insurance option for Airbnb hosts.

They’ve written over 50,000 policies written in all 50 states in the US. Their policy covers vacation homes, townhouses, condos, duplexes, cabins, cottages, and apartments. They can also tailor a policy specific to your short-term rental property.

They have arguably the most comprehensive policy on the market, with unmatched protection for host liability, amenity liability (bikes, kayaks, hot tubs, etc.), theft, vandalism, and more. They even cover bed bugs and squatters.

You can get a free quote in 5 minutes, or read more in our Proper Insurance review.

Website: https://www.proper.insure/

2. Best for Pioneering Short-Term Rental Insurance: CBIZ

CBIZ has been insuring vacation rental and second home properties since 2002, making them one of the pioneers and leaders in ensuring short-term rental properties. Serving in all 50 states, they are “the largest insurer of short-term vacation rental properties in the United States.”

They work with top-rated carriers to provide a broad portfolio of property insurance coverages tailored to the unique risks of property ownership. With over two decades of experience, they have a deep understanding of the specific needs and challenges of vacation rental properties.

CBIZ stands out for its commitment to clear communication, avoiding technical jargon, and providing personalized customer service. Their expertise ensures that property owners receive top-of-the-line protection, safeguarding both their properties and income.

You can be confident that they’ll have your back when it comes to your vacation rental property needs.

Website: https://vacationrentalinsurance.cbiz.com/

3. Best for Guest Screening: Safely

Safely.ai Vacation Rental Insurance Company

One thing we love about Safely is their Safely Score™, which allows you to screen potential guests. One of the benefits of using a platform like Airbnb or VRBO is the guest reviews. Safely allows you to have a similar advantage by screening guests before they book with you.

Their Safely Protection Policy, offered through On Demand Insurance Agency, LLC, covers up to $1,000,000 for structural damage, content replacement or repair, and bodily injury. This policy is applicable across all booking platforms, including Airbnb, VRBO, and direct booking sites.

Safely’s standout feature is its guest screening process, included with every policy, which helps property owners know who is staying in their homes.

Coverage extends to various scenarios, including pet damage, intentional acts by guests, theft, and even damages caused by guest negligence.

Safely’s approach is designed to protect property owners from the unexpected, ensuring their business and properties are safeguarded against a wide range of potential risks.

Website: https://safely.com/

4. Best for Flexible Insurance Plans: Foremost Insurance

Foremost Vacation Rental Insurance

Foremost offers flexible insurance plan options depending on your specific needs. Whether you have a second home, a rental property, or any other kind of seasonal home, they can probably find an insurance policy that fits.

Unlike many insurers, Foremost does not require your primary residence to be insured with them to cover your seasonal or secondary property. Their comprehensive policy covers most direct, sudden, and accidental physical losses, except those explicitly excluded. 

Additionally, they provide Named Peril Coverage for specific risks like fire and windstorm damage, along with liability coverage for accidents causing injury or property damage. 

Policyholders can opt for Actual Cash Value coverage or choose additional options like Optional Replacement Cost and Extended Replacement Cost for enhanced protection. With Foremost, you can create a customized policy or select a pre-packaged option, ensuring your seasonal home is safeguarded according to your preferences.

To learn more, head on over to our Foremost short-term rental insurance review.

Website: https://www.foremost.com/products/seasonal-home/

5. Best for Established Insurance Reputation: Allstate HostAdvantage

Allstate Host Advantage - Vacation Rental Insurance

If you’re looking to go with a well-established, well-known insurance company, check out HostAdvantage by Allstate. It’s designed for short-term rental owners and hosts like you.

Allstate HostAdvantage® offers specialized insurance for home-sharing hosts, addressing unique risks like theft and accidental property damage. It provides up to $10,000 coverage per rental period for personal belongings, ensuring hosts are protected against losses that standard home insurance might not cover.

Additionally, Allstate enhances the hosting experience with perks like cleaning service discounts and a user-friendly mobile app for easy insurance management.

However, availability and specific coverage details vary by state, and it’s an optional addition to Allstate® Homeowners or Condo policies. HostAdvantage® is a comprehensive solution for hosts seeking extra security in the growing home-sharing market.

To learn more, check out our Allstate HostAdvantage review

Website: https://www.allstate.com/home-insurance/host-advantage.aspx

6. Best for Budget-Friendly Options: American Family

American Family offers one of the most budget-friendly insurance packages for your vacation rentals. It’s a great option for those who only rent out their house over the summer or own a second house that’s rented out on a short-term basis.

They offer Temporary Rental Insurance and Second Home Insurance plans which are augmented homeowners and landlord’s policy plans that cater to your specific needs.

Their policy, distinct from primary homeowners insurance, covers the structure and contents of your vacation home up to the policy’s limits. Recognizing the unique risks associated with vacation homes, such as longer vacancy periods and increased theft risk, American Family’s policy is designed to address these specific challenges. 

They also offer optional coverages like Itemized Personal Property Protection and Hidden Water Damage Coverage for enhanced security. With a focus on flexibility and tailored protection, American Family Insurance ensures your vacation home is safeguarded, providing peace of mind for your cherished getaway.

Website: https://www.amfam.com/insurance/home/coverages/vacation-home-insurance

Other Vacation Rental Insurance Companies

Aside from these, there are other insurance companies that offer short-term rental insurance policies. Here are just a few: Nationwide, Farmers, American Modern, and Progressive.

Whichever insurance company you choose, make sure to let your insurance agent know that you’re using your property as a short-term rental.

Frequently Asked Questions

What is best insurance for Airbnb?

Proper Insurance, backed by Lloyds of London and recommended for Airbnb hosts, specializes in short-term rentals. It provides comprehensive coverage for host liability, amenity risks (bikes, kayaks), theft, vandalism, and unique situations like bed bugs and squatters.

What kind of insurance do I need for Vrbo?

For Vrbo, it’s advisable to have a short-term rental insurance policy. While Vrbo offers its host protection plans, having your own insurance policy is safer. Companies like Proper Insurance, CBIZ, and others offer insurance policies tailored for short-term vacation rental properties, including those listed on Vrbo.

How does vacation rental insurance work?

Vacation rental insurance safeguards owners renting properties short-term via Airbnb, Vrbo, or directly. Essential as standard homeowner’s insurance typically excludes such rentals, it covers property damage, personal liability, and unique short-term rental risks. Tailoring a policy to your specific property type, be it a vacation home, townhouse, or condo, is crucial.

Enjoy the Benefits of Having Vacation Rental Insurance

Having homeshare insurance means you can have peace of mind knowing that should your guests cause damage to your property or get injured, you’ll be covered. We recommend Proper Insurance given the comprehensive range of protection they offer, the ability to customize your policy, and their affordable rates.

Get a comprehensive vacation rental insurance quote in 3 minutes.

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