Does Vacation Rental Insurance Cover Lost Booking Income?
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
For vacation rental owners, lost bookings can be financially devastating. You may wonder: Does vacation rental insurance cover lost booking income?
The answer is yes—but only with the right policy. Standard homeowners or landlord insurance typically does not cover lost income from short-term rentals, making specialized vacation rental insurance essential.
What Is Loss of Booking Income Coverage?
Loss of booking income coverage (also called loss of rental income coverage) protects property owners when a covered event makes the rental uninhabitable. This could include:
Fire or water damage
Storms or natural disasters
Vandalism or guest-caused damage
With this coverage, you receive compensation for the income you would have earned during downtime, ensuring your rental business stays financially secure.
Why Homeowners Insurance Isn’t Enough
Most homeowners policies cover owner-occupied properties, not short-term rentals. They typically:
Exclude business-related losses
Do not cover rental income lost due to property damage
May limit liability coverage for guests
Platforms like Airbnb and Vrbo provide limited host protection, but these programs are not insurance and may not cover lost income:
Other Key Vacation Rental Insurance Coverages
To fully protect your property and business, look for policies that include:
Property Damage Coverage – Protects your structure and permanent fixtures from guest-caused damage or natural disasters.
Contents Coverage – Covers furniture, electronics, and other items guests use.
Liability Protection – Covers guest injuries and legal fees.
Optional Add-Ons – Flood, earthquake, and umbrella liability coverage for extra protection.
How Wexford Insurance Can Help
At Wexford Insurance, we specialize in vacation rental insurance tailored to your property and rental activity. We help you secure policies that cover lost booking income, property damage, liability, and theft—ensuring peace of mind for you and your guests.
