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What insurance actually covers on a short-term rental
General information, not advice. Rules and situations differ from place to place and from one property to the next. Check with the office, insurer or tax professional who governs your own case.
The policy you have may not be the policy you need. Many owners find out what their insurance covers only after something goes wrong — this is the conversation to have before your first guest arrives.
Why your current policy may not fit
- Homeowners policies are written for a home you live in. Renting it to paying guests can count as business use, which many homeowners policies limit or exclude.
- Landlord policies are written for long-term tenants with a lease. Short stays by many different guests are a different risk.
- A rider or endorsement may add some cover for occasional hosting — or may not go far enough. Read it, and ask.
What short-term rental policies usually include
- Liability — if a guest is hurt at the property.
- Property damage — to the building and your contents, including damage caused by guests.
- Loss of income — bookings lost while a damaged property can't be rented.
- Some policies add specialty coverage, such as pests or squatters. Each policy differs.
Platform protection is not a policy
Booking platforms may offer their own damage or liability programs. Read their terms closely: what they cover, what they exclude, and how you claim. Many owners still carry their own policy.
Questions to ask an insurer
- Does this policy cover paying guests staying fewer than 30 nights?
- What liability limit does it carry, and does my town or my lender require a minimum?
- Is guest-caused damage covered, including pets?
- Does it cover lost bookings while repairs are made?
- Am I covered when the place sits empty between stays, and when my family uses it?
- How do I file a claim, and how quickly must I report one?
Find insurers who serve short-term rentals under insurance.