Short-term rental insurance (also known as nightly rental insurance) is a growing topic in the insurance space. Regardless of your experience as a property owner, our team has spent hours upon hours researching to make sure we have the right options for our clients!  

Whether you own a 1-2 bedroom condo or a 12-bedroom, standalone home, we have policies to cover your properties as you rent them on a short-term basis. 

What makes Short-term Rental Insurance so different? 

The market is still growing- The insurance market as a whole is still discovering these types of policies and if they will cover them at all. Some companies are diving in while others are waiting to see if it will stick. Some insurance providers offer nothing but nightly rental policies. We think they are here to stay. 

The policies are tricky- Rental properties can often bounce back and forth between occupied and vacant throughout the year. This means your needs can change depending on whether you use it as a vacation home or an investment-only property. Also, is it owned under a personal name or a business name? 

Important coverages to know about 

Personal property 

We like to say that if you took the roof off your house, turned it upside down, and shook it, anything that falls out is typically covered under personal property. That’s the couch, stove, paintings on the walls, your beds, clothes, and everything else that is loose!   

We recommend beginning with $10,000 – $15,000 of personal property coverage per bedroom.  

*Note this does not cover property damage caused by tenants during their stay (we’ll talk about that later)  

Loss of income 

Whether you rent a single Airbnb, or you own that 12-room bed and breakfast, all or part of your livelihood depends on your property’s well-being. If a tree falls on your guest house right before busy season, you will need to make up for that lost income!  

This number varies largely by property type, but we recommend $15,000-20,000 of coverage per room in your rental.  

Liability  

This coverage is for if someone gets hurt while on your property and decides to sue for damages. You should carry a minimum of $500,000 of liability coverage, but $1,000,000 is your goal!  

Short-term Insurance FAQs 

What happens if a tenant damages mine or my neighbor’s personal property? 

Airbnb’s Aircover and VRBO’s Liability Insurance are invaluable tools (if you use these services). This is the most effective way to cover your items as a property owner. 

How much does short-term renters insurance cost? 

The location of your property will play a big part in it as well as its condition. Generally, anything that affects your typical homeowner premium will also impact short-term rental insurance. (note that short-term insurance has a slightly higher premium than your typical home insurance policy) 

Getting coverage 

Know that not all insurance providers offer short-term rental policies! Make sure to speak with your agent so you know your providers’ capabilities.  

Also, find someone who knows what they are doing. Often, working with an insurance broker can save you time and effort. 

Robbins Insurance Group has the privilege of serving a diverse community of real estate investors. If you are considering insurance for short-term rentals, our team would love to research for you. By comparing quotes from our awesome providers, we find the most suitable coverage to give you peace of mind. Just reach out! 

Want to learn more about insurance? Check out our other blogs for more useful tips!