Top 5 Short-Term Rental Insurance Companies Every Airbnb and VRBO Host Should Know.

Short-term rental properties, like those listed on Airbnb, VRBO, and other platforms, can be lucrative investments. However, they also come with unique risks that can make traditional homeowner’s insurance insufficient. Property damage, guest injuries, and theft are all common concerns that can leave you financially vulnerable if you’re not adequately insured. Fortunately, several insurance companies specialize in providing coverage tailored to the needs of short-term rental hosts. 

This guide explores the top five (5) short-term rental insurance providers that every host should consider to protect their investment and gain peace of mind.

1. Proper Insurance

Overview

Proper Insurance stands out as one of the top insurance providers specifically for short-term rental owners. They offer comprehensive policies that are specifically designed for vacation rental properties and can cover risks that traditional homeowner’s insurance policies typically do not. Partnering with Lloyd’s of London, one of the largest insurance companies in the world, Proper Insurance ensures that hosts receive dependable and extensive coverage.

Key Features

• Commercial Liability Coverage: Proper Insurance provides $1 million in commercial liability coverage, protecting you if a guest is injured on your property and decides to sue. The coverage also includes $1 million in personal liability protection, offering a comprehensive safety net.
• Contents and Building Coverage: Unlike standard homeowner’s insurance, Proper Insurance offers protection for damage caused by guests, including vandalism, theft, and accidental damage.
• Income Protection: If your property becomes uninhabitable due to a covered event, Proper Insurance can help cover lost rental income during the repairs.

Pros and Cons

• Pros: Policies replace your existing homeowner’s insurance, meaning you don’t need two separate policies; coverage is specifically designed for short-term rentals; partnership with Lloyd’s of London adds credibility.
• Cons: Higher premiums than traditional homeowner’s insurance; coverage might be more than necessary for hosts with occasional rentals.

Best For: Hosts who need comprehensive, all-in-one coverage for a property they frequently rent out. Proper Insurance’s robust policies provide extensive protection, ideal for serious Airbnb or VRBO hosts who view their rental as a business.

>> Click here to get your quote from Proper insurance <<

2. Foremost Insurance

Overview

Foremost Insurance offers short-term rental insurance as part of its landlord insurance program, providing a solid option for those renting on platforms like Airbnb and VRBO. Foremost policies are designed for landlords, including those who rent out their property for short periods, making it an affordable choice for hosts who may not need full commercial policies.

Key Features

• Liability Coverage: Foremost provides liability protection for injuries to guests, giving you peace of mind if someone gets hurt on your property.
• Property Protection: The policy covers damage to the building and contents caused by guests, including vandalism, accidental damage, and theft.
• Loss of Use: Foremost includes optional loss-of-use coverage, helping you recoup lost rental income if a covered event renders the property uninhabitable.

Pros and Cons

• Pros: Affordable option for part-time hosts; optional coverage for lost rental income; accessible for those who want a basic level of protection.
• Cons: May lack the comprehensive coverage offered by dedicated short-term rental policies; coverage may vary based on location.

Best For: Hosts who need affordable coverage for occasional rentals but don’t require the extensive options offered by standalone short-term rental insurance.

>> Click here to get your quote from Foremost insurance <<

3. CBIZ Vacation Rental Insurance

Overview

CBIZ Vacation Rental Insurance specializes in insuring vacation rental properties and is particularly popular among Airbnb and VRBO hosts. CBIZ offers a blend of commercial and personal insurance, which is crucial for short-term rental owners who may live in the property part-time and rent it out the rest of the time.

Key Features

• Hybrid Coverage: CBIZ offers coverage for both personal use and rental activities, making it an excellent option for hosts who occupy their property part-time.
• Broad Liability Coverage: Their policies include general liability, with options for up to $2 million in coverage, protecting you from lawsuits stemming from guest injuries and property damage.
• Building and Contents Protection: CBIZ protects against damage from guests, including theft, vandalism, and accidental damage, and offers replacement cost options for furniture and appliances.

Pros and Cons

• Pros: Tailored specifically for vacation rental properties; high liability limits available; hybrid coverage is perfect for dual-purpose properties.
• Cons: More expensive than traditional homeowner’s insurance; policies require underwriting, meaning quotes may not be instantaneous.

Best For: Hosts who split their time between renting and personal use of their property. CBIZ’s hybrid coverage is ideal for dual-purpose properties, providing protection for both your home and your short-term rental business.

>> Click here to get your quote from CBIZ insurance <<

4. Allstate HostAdvantage

Overview

Allstate HostAdvantage is an add-on endorsement that Allstate customers can use to expand their existing homeowner’s policy for short-term rental protection. Though not as comprehensive as standalone short-term rental insurance, HostAdvantage offers a convenient option for Allstate policyholders looking to cover risks associated with short-term rentals without buying a separate policy.

Key Features

• Theft and Damage Coverage: HostAdvantage protects your property and belongings against theft and damage caused by renters, covering incidents that a standard homeowner’s policy might exclude.
• Flexible Add-On: Since it’s an endorsement rather than a standalone policy, HostAdvantage allows you to keep your regular Allstate homeowner’s insurance and simply expand your coverage for short-term rental use.
• Personal Liability Protection: While more limited than standalone policies, HostAdvantage does provide a level of personal liability protection, covering legal costs if a renter sues for injuries sustained on your property.

Pros and Cons

• Pros: Affordable for Allstate customers who already have homeowner’s insurance; no need to switch policies; basic protection against guest-related risks.
• Cons: Limited coverage compared to full-fledged short-term rental insurance policies; may not cover all risks associated with frequent renting.

Best For: Allstate policyholders who want affordable, supplemental protection without the need to buy separate insurance. HostAdvantage is ideal for infrequent hosts who need basic protection without fully committing to short-term rental insurance.

>> Click here to get your quote from Allstate HostAdvantage insurance <<

5. Safely

Overview

Safely is a unique short-term rental insurance provider that combines traditional insurance coverage with guest screening services, making it ideal for property owners who want added security in choosing trustworthy guests. Safely is specifically designed to cater to the short-term rental market, offering coverage that includes damage and liability protection while also helping hosts mitigate risk by screening guests.

Key Features

• Guest Screening: Safely screens guests for potential risk factors, helping hosts prevent incidents before they occur. This added layer of protection can help identify problematic guests before they even set foot on your property.
• Damage and Liability Protection: Safely offers up to $1 million in liability coverage and $10,000 in damage protection, ensuring that hosts are protected from significant losses.
• Customized Policies: Safely allows hosts to purchase coverage on a per-night basis, making it flexible and cost-effective for those who want tailored insurance.

Pros and Cons

• Pros: Guest screening minimizes risk; per-night policies offer flexibility; strong liability and property damage coverage.
• Cons: Premiums can add up for frequent rentals; guest screening may result in a smaller pool of eligible renters.

Best For: Hosts who value security and want to reduce the likelihood of problematic guests. Safely’s guest screening and per-night coverage make it ideal for risk-averse hosts who prioritize guest vetting and tailored protection.

>> Click here to get your quote from Safely insurance <<

How to Choose the Right Insurance for Your Short-Term Rental Property?

Finding the right short-term rental insurance can be challenging, especially given the range of options available.

Here are a few considerations to help you decide:

• Frequency of Rentals: If you’re a full-time host, an all-encompassing policy like Proper Insurance may be ideal. Part-time hosts might prefer pay-as-you-go options from providers like Safely.
• Budget: Balancing affordability and coverage is essential. If you already have homeowner’s insurance with Allstate, adding HostAdvantage could be a cost-effective way to get basic short-term rental protection.
• Guest Risk Management: If you want to screen guests to reduce risk, Safely provides a unique option with its screening services and per-night coverage model.
• Dual-Purpose Properties: CBIZ offers a flexible, hybrid approach for hosts who sometimes live in their property but also want adequate coverage when they rent it out.

Conclusion

Whether you’re hosting full-time or occasionally renting out your home, securing the right insurance is essential for peace of mind and financial protection. The five (5) providers listed here – Proper Insurance, Foremost Insurance, CBIZ, Allstate HostAdvantage, and Safely – offer distinct policies tailored to different needs and rental frequencies. By selecting the best insurance for your situation, you can protect yourself, your property, and your guests, allowing you to focus on delivering a great experience for travelers.

Ultimately, the right insurance is an investment that protects your property and your income while ensuring you can continue to enjoy the benefits of short-term rentals, no matter what.

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