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.
The Top 6 Best Vacation Rental Insurance Companies
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.
1. Proper Insurance
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.
CBIZ has been insuring vacation rental and second home properties since 2002, making them one of the pioneers and leaders of insuring short-term rental properties. Serving in all 50 states, they are “the largest insurer of short-term vacation rental properties in the United States.” You can be confident that they’ll have your back when it comes to your vacation rental property needs.
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.
4. Foremost 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.
5. Allstate HostAdvantage
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.
6. 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.
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.
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.