Do You Need Special Insurance for Short-Term Rentals?
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 hours ago
- 2 min read
Short-term rentals—like those listed on Airbnb or Vrbo—can be a great source of income, but they also come with unique risks that standard homeowners insurance doesn’t cover. Whether you rent out a vacation cabin, condo, duplex, or lake house, you need specialized short-term rental insurance to protect your property, guests, and business.
At Wexford Insurance, we offer tailored coverage for short-term rental owners, helping you avoid costly gaps and denied claims. Here’s what you need to know.
Why Homeowners Insurance Isn’t Enough
Most homeowners' insurance policies include a business activity exclusion, meaning they won’t cover damages or liability if you’re renting out your property—even occasionally.
Once you accept payment from guests, your property is considered a business. That changes your risk profile and requires a different type of coverage.
What Is Short-Term Rental Insurance?
Short-term rental insurance is designed specifically for properties rented out for brief periods—typically under 30 days. It combines elements of homeowners, landlord, and business insurance to cover:
Property damage caused by guests
Liability for guest injuries or lawsuits
Loss of rental income due to covered events
Coverage during vacancy periods
Protection for amenities like pools, hot tubs, and decks
Some insurers offer this as an endorsement to your existing policy, while others require a standalone policy depending on your rental frequency.
Airbnb’s AirCover Isn’t Enough
Airbnb offers AirCover, which includes:
$1 million in liability coverage
$3 million in damage protection
Reimbursement for pet damage and cleaning fees
However, AirCover is not a licensed insurance policy and has limitations. It doesn’t cover:
Wear and tear
Theft
Damage from natural disasters
Liability claims outside of active bookings
If you rely solely on AirCover, you could face denied claims and financial loss.
Why Choose Wexford Insurance?
Wexford Insurance provides comprehensive short-term rental insurance for:
Vacation homes and cabins
Duplexes, triplexes, and quadplexes
Condos, lake houses, and townhomes
We tailor coverage to your property type, rental frequency, and location. Our policies include protection for guest-caused damage, liability, and income loss—plus optional add-ons for flood, earthquake, and vandalism.
Final Thoughts
Short-term rentals are a business—and businesses need proper insurance. Standard homeowners' policies won’t protect you from guest-related risks, and platform guarantees like Airbnb’s AirCover have serious limitations.
Wexford Insurance offers the specialized coverage you need to protect your property, income, and peace of mind. Whether you rent occasionally or operate full-time, we’re here to help you stay covered and confident. Connect now!
FAQs
Q1: Can I use my homeowner's insurance for short-term rentals?
No. Most policies exclude business use and won’t cover rental-related claims.
Q2: Is Airbnb’s AirCover real insurance?
No. It’s a protection program with limitations—not a licensed insurance policy.
Q3: What does short-term rental insurance cover that homeowners doesn’t?
It covers guest-caused damage, liability, and income loss—things homeowners insurance excludes.
