The Best Insurance for Vrbo Vacation Rental Owners in 2024

Offering your short-term rental property on Vrbo demands a unique insurance package to comply with Vrbo requirements for owners and to ensure your assets are protected. Here are our top Vrbo insurance for owners!

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Owning a vacation rental can be a dream come true, but have you considered the nightmares? What if a guest damages your property or, worse, gets injured?

Navigating the maze of insurance for your Vrbo rental can be daunting.

Are you confident that your current policy fully protects your investment?

Discover why standard insurance might leave you vulnerable and how the right Vrbo vacation rental insurance can be your safety net.

Ready to secure your peace of mind?

Let’s dive into the essentials of Vrbo vacation rental insurance for owners.

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Best Vrbo Insurance For Owners

Got no time to read? Here are our top picks!

  1. Proper Insurance: Best for Comprehensive Coverage
  2. CBIZ: Best for Pioneering Short-Term Rental Insurance
  3. Allstate HostAdvantage: Best for Established Insurance Reputation
  4. American Family: Best for Budget-Friendly Options

Why You Need an Insurance Policy for Your Vrbo Property

Imagine this: You’ve just stepped into the world of vacation rentals. Your property is listed on Vrbo, bookings are rolling in, and your dream of earning extra income is becoming a reality. But have you considered the risks?

1. Protect Your Investment

Your property is not just a building; it’s a significant financial investment. Standard homeowners insurance might not cover vacation rental activities.

Without proper insurance, one mishap could cost you dearly. Protect your investment with a policy tailored for Vrbo properties.

2. Liability Coverage

Accidents happen.

A guest slips on a wet floor, or a faulty appliance causes injury. Suddenly, you’re facing a lawsuit. Insurance can provide liability coverage, safeguarding you against claims that could otherwise devastate your finances.

3. Income Security in Times of Crisis

What if a natural disaster, like a flood or wildfire, forces you to close your doors? Loss of income can be stressful.

An insurance policy can cover lost revenue during these unforeseen closures, ensuring your financial stability.

4. Peace of Mind for You and Your Guests

Knowing that you’re insured builds trust with your guests.

They can relax, knowing that there’s a policy in place in the event of any property damage or accidents. This peace of mind is priceless.

5. Compliance with Local Laws

Many localities require specific insurance for short-term rentals. Being insured keeps you compliant with these laws and protects you from fines and legal issues.

6. Customized Coverage for Unique Needs

Every property is unique. Insurance for your vacation rental allows you to customize your coverage, ensuring that you’re not paying for what you don’t need, but you’re fully covered for what you do.

7. Rapid Response to Damage Claims

Quick response to damage claims keeps your business running smoothly. With the right insurance, you can address property damages swiftly, ensuring minimal disruption to your rental activity.

8. Building a Sustainable Business

Insurance is not just about protection; it’s about sustainability.

By securing your property with the right insurance, you’re building a foundation for long-term success in the vacation rental market.

Homeowners Insurance Isn’t a Fit for Vrbo: Here’s Why

When it comes to insuring your Vrbo property, relying on standard homeowners insurance can leave significant gaps in coverage, primarily because these policies are designed for personal, not business use.

This distinction is crucial as renting out your property on Vrbo is essentially running a business, which involves different risks and liabilities.

One of the key areas where homeowners insurance falls short is in covering incidents involving paying guests.

These policies are not typically structured to handle the unique scenarios that arise from short-term rentals, such as guest-related damages or accidents. This oversight can lead to significant financial vulnerabilities for property owners.

Another critical aspect is liability coverage.

Standard homeowners policies may not provide adequate protection against injuries or accidents that occur to guests staying at the property. This gap in coverage can expose Vrbo hosts to substantial legal and financial risks, especially in the event of a lawsuit.

Moreover, the frequent turnover of guests, a common feature of short-term rentals like Vrbo, presents a set of risks that are often not addressed by homeowners insurance.

This high turnover can increase the likelihood of property damage and other issues that typical homeowners’ policies are not equipped to handle.

Lastly, a significant concern for Vrbo property owners is the loss of rental income.

Should an unforeseen event make the property unavailable for rentals, homeowners insurance usually does not cover the resulting loss of income. This can be a critical financial blow to those relying on rental income from their Vrbo properties.

Take Note! A landlord policy also isn’t enough since short-term renters won’t be considered “tenants.” Neither is a commercial insurance policy appropriate since it doesn’t include a broad liability or loss of income coverage for Vrbos and short-term rental properties.

Vrbo Liability Insurance Has Limitations

When you list your property with Vrbo for vacation rentals, you are immediately covered by their $1M Liability Insurance through the provider Generali Global Assistance at no additional cost to you as the host. 

But this does come with a little catch: you are only covered on stays that are processed through the HomeAway platform; anything otherwise isn’t covered. 

The Vrbo policy offers up to $1 million in primary liability coverage per year per property for claims of injuries to guests and damage to the property of a third party (like a neighbor). But that’s as much protection as you get from them.

As you may notice, while a million dollars worth of insurance coverage is a lot, it does come with a lot of exclusions and limitations.

What to Look For in a Vrbo Insurance Plan

Now that you know you’re on the hunt for an insurance plan tailored for Vrbo rentals, you need to carefully look for a few things while shopping around for the best Vrbo vacation rental insurance for you. 

Loss of Income

One of the most important considerations you need to look at in a Vrbo insurance policy is that it should cover loss of income.

Unforeseen circumstances like sudden repairs or renovation, damage from a natural calamity, fire, and the like will cost you precious time and resources and will prevent you from renting out your Vrbo property.

All that lost income while your property is being repaired will be recouped with the appropriate insurance policy.

Property and Contents Insurance

Nothing beats having the peace of mind that your property and everything in it—furnishings, furniture, bedding, appliances, etc—is protected by your Vrbo insurance coverage.

Any repair or need for replacement can and will be covered so you can make sure you can offer the best amenities for your guests.

Liability Coverage

Perhaps one of the most important aspects of an insurance policy is liability coverage.

The liability insurance should be very comprehensive to cover you in the event of, say, a guest falling down a flight of stairs and breaking their leg or if a guest should cause damage to your neighbor or other third parties. 

Location-Specific Coverage

Natural disasters such as floods, earthquakes, and even fires are unfortunate but inevitable occurrences.

This means a significant loss of income and property damage; your Vrbo insurance should be able to cover this as well. 

No Forced Entry Requirement for Damage or Theft

Many commercial and landlord policies would require you to provide proof that your property was forcibly entered in the event of theft or property damage.

Read the fine print and look for an insurance policy that won’t require this clause so you can be confident that your Vrbo property and its contents are covered.

The Best Insurance for Vrbos

Fortunately, in recent years a few insurance companies have dove into the market of short-term rentals.

The first of these was Proper Insurance, which offers policies that are custom-fitted to cover the unique and specific needs of short-term rental properties. 

Proper Insurance

Proper Insurance is handpicked by HomeAway (Vrbo’s parent company) and endorsed as its insurance company of choice! If that isn’t enough to convince you to have them cover your property, we don’t know what is. 

Proper Insurance offers comprehensive coverage for your Vrbo vacation rental property with its $1 million general liability coverage (that can be extended to up to $2 million).

They will have your back in everything we just mentioned above that you need to look for in a Vrbo insurance policy.

Proper’s policies blend elements of homeowners, commercial, and landlord policies in order to completely protect you, your guests, and your property.

They even extend their insurance coverage to pets and animal liability, off-premise amenities (like golf carts, jet skis, etc.), liquor liability, bed bug infestation protection, and even squatter protection (yes, this happens). 

Proper Insurance covers you in any occupancy type, so even when you do decide to move in and use your property for your own use, you won’t be breaking any clauses in your insurance policy, and you can be sure that your insurance still protects you as the homeowner.

Learn more in our Proper Insurance review or get a quick 5-minute quote on their services!

Other Vrbo Insurance Policy Alternatives

There are also other insurance companies that offer solid options for your Vrbo vacation rental property.

CBIZ Vacation Rental Insurance

Along with Proper Insurance, CBIZ is one of the key players in the vacation rental insurance providers. Founded with the vision to cater to the unique needs of short-term rentals and vacation homes, they are a solid option to cover your Vrbo property.

Allstate HostAdvantage

The HostAdvantage by Allstate program is an option that serves as a supplement to your existing Vrbo insurance policy. 

American Family

American Family offers a great budget option for your Vrbo property, especially as they offer specific coverages for vacation and second home insurance which fit with Vrbo’s unique conditions of non-occupancy of properties that you rent out.

Final Thoughts

You’ll definitely want to protect your Vrbo short-term rental so you can get the most out of your property and your short-term rental business.

Vrbo’s distinctive set of insurance needs warrants a unique insurance policy.

Proper Insurance is a great place to start, especially when they’re the choice insurance company by Vrbo.

CBIZ Vacation Rental Insurance, HostAdvantage by AllState and the vacation and second home insurance plans offered by American Family are also great additions to your existing insurance policy to make sure that you, your guests, and your property are covered.

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