Everything You Need to Know About Airbnb Insurance for Your Short-term Rental Property

Are you looking to rent your home or spare room but unsure of what insurance protection you need? You’re not alone! Many people venturing into the world of Airbnb and other short-term rentals may feel overwhelmed by some technical and financial aspects. 

Covering your vacation rental property often goes beyond the basic homeowner’s insurance that comes with owning a house. This article will discuss different insurance policies for Airbnb hosts and provide an overview of each so you can rest easy knowing that your investment is protected from potential accidents or liabilities during your guests’ stay. We will also share how Torian insurance can help with your short-term rental and vacation rental property insurance needs.

What Is a Short-term Rental?

A short-term rental is a unique living accommodation ideal for those looking for a comfortable, convenient place to stay for a few days or weeks. Unlike long-term rentals, short-term rentals are generally fully furnished and come with all the amenities one needs for their stay, making it an easier transition for visitors and travelers.

Short-term rentals offer the perfect way to experience a destination without committing to an extended rental agreement, whether you’re staying in a large city or quaint rural farmhouse. Plus, with competitive pricing and flexible hosting arrangements, they’re often the best option for finding quality accommodations on the go. 

Short-term rentals are typically for a limited period, usually no longer than six months, and long-term leases have an agreement in place for a year or more. Remember that longer-term leases can provide more stability and access to specific amenities and benefits not available when renting short-term. Research and compare your options to determine which is best for your situation.

What Is Short-term Rental Insurance?

Short-term rental insurance is an often forgotten but essential form of insurance protection that covers short-term rental properties for both homeowners and tenants. This insurance provides necessary coverage for short-term occupants, protecting them from liability if something goes wrong with their rental experience.

Short-term rental insurance policies allow homeowners to feel more secure in renting their homes to vacationers or other short-term renters. While not always required by law, short-term rental insurance gives hosts reassurance and protection against any potential risks associated with short-term rentals.

What Is Short-term Rental Insurance Meant For?

Short-term rental insurance is ideal for people who partake in the sharing economy and rent their homes, rooms, cars, boats, and more to travelers. This type of policy offers flexible coverage specifically created for the unique coverage gap that may be present with homeowner’s and landlord’s policies.

In addition, it often includes liability coverage for bodily injury or property damage and physical damage to personal items. Short-term rental insurance also provides financial protection if something goes wrong during a guest’s stay, so hosts can feel confident hosting without worrying about any potential losses they may incur.

Airbnb and Vrbo

Modern Airbnb living room with lots of natural elements and potted plants.

Airbnb and Vrbo are both platforms that make traveling more convenient than ever, enabling users to find accommodations easily in desirable locations. Airbnb is a peer-to-peer online marketplace that allows individuals to rent out their private lodgings — such as apartments, homes, or spare rooms — for short-term stays. 

Vrbo is similar but offers vacation rentals such as cabins, cottages, condos, and more from property owners. Both sites feature search tools that allow travelers to quickly find available listings in desirable areas and price ranges. Furthermore, the platforms guarantee safe transactions via secure payment systems and insurance coverage in case of significant problems while staying at someone else’s rental. 

Common Problems You Might Encounter as an Airbnb or Vrbo Host

If you’re considering becoming an Airbnb or Vrbo host, you may wonder what common problems you will likely encounter. From nonpayment to vandalism, it’s essential to know what potential issues to look out for to be prepared. 

Nonpayment

Unfortunately, one of the most common problems that Airbnb or Vrbo hosts experience is guests who do not pay for their stay at the end of their reservation. To prevent this from happening, set a straightforward payment policy and firm but fair cancellation policy for your listing and remind guests of it throughout your communication. This will help ensure that guests are fully aware of the consequences if they don’t pay on time. 

Damage to Your Property and Guest Property

Airbnb and Vrbo hosts must protect their and guests’ property during a stay. This means you’ll need liability insurance or must ask guests to sign a damage waiver before check-in.

Theft and Vandalism

Unfortunately, theft and vandalism are always risks when running a rental business — no matter how careful you might be with who you allow into your space! The best way to protect yourself from these risks is by investing in sound security systems such as CCTV cameras and alarm systems which can help deter criminals or catch them in the act should anything happen while your guest stays with you. Also, consider investing in additional locks for your doors and windows so that only those with access codes can gain entry to the property.

Injury to Guests

It’s also essential to consider potential injuries that could occur during a guest’s stay at your property — mainly if they result from negligence on your part (e.g., faulty electrical wiring). Again, liability insurance can help protect against legal action if someone gets injured at your home or apartment building due to a mistake made by either party involved. 

Insurance From Airbnb and Vrbo

Airbnb offers AirCover for Hosts, but this policy will not help you cover:

  • Damage or injury caused by something done on purpose
  • A guest’s damage to your property or belongings

Vrbo offers $1 million in Liability Insurance for any stays handled through the Vrbo checkout. However, this policy does not cover any damage to your property from a guest.

If you want to ensure your property is as protected as possible, you’ll need a more comprehensive policy than those offered by Airbnb and Vrbo.

Alternatives to Vrbo and Airbnb Insurance Coverage

Winter vacation holiday wooden Airbnb in the mountains covered with snow. Pine trees forest and blue sky in the background. Active people with ski, snowboard.

If you feel like Vrbo and Airbnb insurance are not for you, you can try a few alternatives.

Homeowner’s Insurance

Homeowners’ insurance, often referred to as property insurance, is an essential form of protection for any home and its contents. Not only does homeowners’ insurance protect your home from loss or damage, but it also provides liability coverage against accidents that may occur in the home or on the property. This type of insurance will cover a wide range of incidents, from damage to burglaries, depending on your policy.

What it covers:

  • Exterior damage
  • Interior Damage
  • An injury that occurs on the property
  • Loss or damage to personal belongings or assets
  • Most natural disasters

What it does not cover:

  • Earthquake
  • Floods

Cost of Homeowner’s Insurance

On average, policyholders are looking at an annual cost of $1,899 for a dwelling coverage of $300,000. That averages to approximately $158 per month, making it possible to plan and budget accordingly. That said, there are a plethora of factors that can influence the actual premium you may need to pay. This includes where you live, the amount of coverage you require, and your credit and claims history. 

Example of Homeowner’s Insurance

Selective Home Insurance

Torian can help you find the perfect homeowner’s insurance policy that meets your specific needs.

Selective Insurance offers homeowner’s policies that go beyond standard coverage with their enhancement options:

  • Summit Classic
  • Summit Elite
  • The Selective Edge®
  • Platinum PolicySM

Selective can help you cover vandalism and theft losses and help you pay for replacing personal belongings or a temporary place to stay should something happen to your home that makes it uninhabitable. It also provides liability coverage should you be sued for injuries that happen on your property. Contact Torian to see if Selective’s policies are right for you.

Landlord Insurance

Landlord insurance is an ingenious way for landlords to protect their investments from risks associated with leasing property. It is especially beneficial if you frequently rent out your property through Vrbo or Airbnb and need to insure against any unforeseen mishaps or accidents. 

Landlord insurance often includes a variety of coverage choices and policy riders, such as liability insurance for landlords, vacant property theft and vandalism protection, coverage for alternate housing arrangements in the event of a repair, and landlord personal property coverage. Landlord insurance can also include building and contents insurance. 

What they cover:

  • Loss of rental income
  • Liability protection
  • Property damage
  • Most natural disasters

Cost of Landlord Insurance

Fortunately, landlords typically won’t have to break the bank to obtain this coverage; most landlords expect to pay roughly $1,481 each year for this insurance.

Example of Landlord Insurance 

Torian can help you find landlord insurance to protect you against potential damage or loss. Our rental property insurance products are tailored to landlords’ individual needs, and we offer a range of coverage options.

Acuity Insurance

Acuity Insurance offers an outstanding landlord insurance policy that provides a comprehensive coverage plan. A variety of properties are covered, including condos, apartments, and single-family dwellings. Acuity can cover:

  • Lost rental income
  • Water backup and sump overflow damage
  • Broken equipment
  • Lost income from employee dishonesty

These specialized coverages can give you a well-rounded and solid landlord insurance policy, and Torian is here to find a policy tailored to your needs.

Short-term Rental Insurance

Short-term rental insurance covers any potential damage or injuries sustained during a short-term stay. It’s an investment that could save you thousands of dollars in repair costs, legal fees, and more. Whether you intend to offer VRBO stays or insure an Airbnb, the peace of mind associated with short-term rental insurance is invaluable. With a small cost and a lengthy list of benefits, it’s always worth considering for any home-renting business.

What they cover:

  • The construction of your house and other structures on your property
  • Personal items kept on the property Equipment and amenities provided to guests 
  • Personal liability if a guest is injured on your property
  • Revenue loss if the damage requires you to remove your property from service as a holiday rental while it is being repaired.

Cost of Short-term rental Insurance

In the United States, short-term rental insurance typically runs between $2,000 and $3,000 per year, although the cost can be much lower. Some carriers are beginning to include some short term rental coverage in their existing homeowner and dwelling policies. The total number of days and number of consecutive days rented can affect availability and cost. However, if your property is located in a popular tourist destination such as Florida or California, the cost can reach up to $9,000 per year. While short-term rental insurance comes with a price tag, it also ensures that short-term rental owners are adequately protected against risks associated with vacation home rentals and covers damages, injuries, and more.

Information You Need To Get an Airbnb Insurance Quote

When it comes to Airbnb insurance, the more information you can provide upfront, the better. You’ll want to ensure you have details such as the build construction type and significant renovation dates, your monthly income (actual or estimated), and the property’s market value on hand. 

Additionally, having answers for questions about the age of systems — plumbing, electrical, HVAC, roofing, etc. — as well as other information like address and number of units, square footage, and age of building will help ensure a seamless process for getting an Airbnb insurance quote quickly and accurately.

Get Insured With the Help of Torian Insurance

Senior couple on smartphone reading online to find an airbnb insurance quote from a local insurance agency

Torian is an insurance company that can help you find short-term rental insurance for your vacation rental property. Getting insurance through Torian means you’ll find the perfect policy to protect your property from unexpected disasters like fire, theft, and vandalism. With the help of Torian Insurance, you can be sure that your rental property is protected against anything life might throw at it.

We can help you find coverage for:

  • Medical payments for guests
  • Emergency repairs
  • Temporary housing for guests during repairs
  • Loss of income

Finding the right Airbnb insurance plan doesn’t have to be a complex process. Many factors determine what type of Airbnb coverage you need, and the best way to choose is by consulting an experienced insurance agency such as Torian Insurance. Torian will help you find a plan that best meets your individual needs so that you have peace of mind knowing that you’re properly covered. 

Whether you’re starting with a new Airbnb property or looking to adjust an existing Airbnb insurance policy, Torian Insurance has the expertise to help you make sure your Airbnb rental is fully protected. Contact us today to get started on finding the best Airbnb protection plan for your situation!

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