Standard homeowners insurance policies are insufficient for short-term rentals, as they typically exclude commercial activity like hosting paying guests on platforms like Airbnb or Vrbo. This leaves property owners exposed to significant financial risk.
Specialized short-term rental insurance is essential to protect your investment. This dedicated coverage offers three primary pillars of protection: property coverage for damage to the structure and contents, liability coverage for potential guest injuries and lawsuits, and loss of income coverage (business interruption) if a covered peril forces a closure. Relying on platform guarantees is secondary; a dedicated commercial policy provides the comprehensive peace of mind necessary for a successful rental business.
