He short term rental insurance It is a financial product that protects your property from damages and civil liability that may arise when renting your home to guests.
If a guest is injured during their stay and sues you, the liability coverage of your short term rental insurance It will help you protect your finances. This type of insurance is designed for brief use cases and not for annual rentals to the same tenants. For the latter situation, you will need homeowner’s insurance.
It is important to highlight that the short term rental insurance It is not the same as classic home insurance. The latter protects your property from damage and civil liability in case someone is injured on your property, whether it is a visitor or a family member. The big difference between the two is that the short term rental insurance it covers the guest who has paid for a short stay and not someone who does not have a business relationship with the owner.
Several insurance companies offer the short term rental insurance as a rider or endorsement on your existing homeowners insurance policy. Depending on how the endorsement or rider is written, you may pay only for the nights you have guests at your property and not for continuous coverage. This can reduce your costs if you plan to only offer your property for rent on a part-time basis. However, other companies may require a separate policy to cover your short-term rental.
Common short-term rental coverages include loss of income, utility overuse, infestation, liquor liability, and identity theft.
How to acquire a short term rental insurance to protect your property?
If you are interested in getting a short term rental insurance To protect your property, the first step is to check if your current insurer offers this option. If not, you can search for other insurance companies to compare prices and coverage.
There are several national and regional insurers that offer short-term rental insurance for homeowners, including:
Allstate: Offers HostAdvantage home sharing insurance.
Farmers: Your policy offers tenant screening reports through SmartMove.
Foremost: allows you to customize the short-term rental policy with different options.
Nationwide: Offers an endorsement or rider to your existing homeowners or condominium policy.
Progressive: Your homeowner’s policy covers you in case of loss of rental income.
Proper: Backed by Vrbo, it offers a 4-in-1 policy that covers short-term rentals, personal use, occasionally vacant homes, and long-term guests or renters.
When contacting different insurance companies, it is important to ask about the details of the policies and rates. Some insurers may require you to obtain a separate policy to cover your short-term rental, while others may add the coverage as an endorsement or rider to your existing policy. It’s also important to consider common short-term rental coverages such as loss of income, utility overuse, infestation, liquor liability, and identity theft.