Renters Insurance for Short-term Rentals: What to Consider

As platforms like Airbnb and Vrbo have gained popularity, short-term rentals have become a favored option for travelers looking for a home-like atmosphere. However, both property owners and renters need to be aware of the insurance implications of these arrangements.

Understanding Short-term Rental Insurance

Short-term rental insurance is designed to cover properties rented out for brief periods, typically less than one or two months. This type of insurance is crucial because standard homeowners or renters insurance policies often do not cover damages or liabilities incurred during short-term rentals. Without proper coverage, property owners and renters could face significant financial risks.

Coverage Options

Short-term rental insurance typically offers financial protection for a range of incidents that might happen during a rental stay. Although the specifics can differ based on the insurer and the policy, common coverage areas often include:

• Damage to property

• Liability coverage

• Loss of rental income

• Theft

• Additional living expenses

Choosing the Right Policy

When selecting a short-term rental insurance policy, consider the following factors:

• Coverage limits—Review your policy for adequate coverage for both property damage and liability.

• Deductibles—Understand the deductible amounts and how they affect your out-of-pocket costs.

• Policy exclusions—Be aware of any exclusions, such as damage caused by pets or intentional acts by guests.

Learn More

For insurance near you, contact Garlesky Insurance Agency.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.