How To Get an Insurance Quote for an Airbnb Rental Property
- May 18
- 6 min read
Owning a short-term rental in Indiana—whether it’s a weekend getaway near Brown County, a downtown Indianapolis condo, or a lake house near Geist Reservoir—can be a strong revenue stream. But it also introduces a level of risk that most traditional landlords aren’t prepared for.
At Wexford Insurance, we regularly talk with property owners who assume their homeowners policy will cover Airbnb or VRBO activity—only to find out that it doesn’t when it matters most. Getting the right insurance quote for an Airbnb rental property isn’t just about price. It’s about making sure your income, your property, and your liability exposure are properly protected.
As Nate Jones, CPCU, ARM, CLCS, AU—our agency principal and former underwriting manager—puts it:
“Short-term rentals are one of the most commonly misunderstood risks we see. The difference between being properly insured and improperly insured usually comes down to whether the owner disclosed how the property is actually being used.”
Let’s walk through exactly how to approach this the right way.
Average Cost of Airbnb Rental Property Insurance in Indiana
Insurance for short-term rentals varies widely based on how the property is used, where it’s located, and the level of coverage you select. Below are realistic estimated ranges we see for Indiana-based Airbnb owners.
Estimated Range: $300–$1,200 per year
This covers injuries or property damage suffered by guests.
At Wexford Insurance, we typically recommend minimum limits of $1M per occurrence / $2M aggregate for Airbnb operators due to the elevated guest turnover.
Estimated Range: $800–$3,500+ per year
This protects the building, contents, and furnishings provided to guests.
Homes in higher-risk areas—such as older properties in Indianapolis or rural properties with delayed fire response—can see higher premiums.
Estimated Range: $1,200–$4,500 per year
A Business Owner’s Policy (BOP) bundles property and liability into one policy tailored for income-generating properties.
Many Indiana Airbnb hosts choose this route because it’s typically more cost-effective and comprehensive.
Included in most BOPs or added as an endorsement
This replaces lost booking revenue if your property becomes uninhabitable due to a covered claim.
For high-occupancy rentals in areas like Carmel or Bloomington, this coverage is critical.
Umbrella Insurance
Estimated Range: $250–$1,000+ per year (per $1M coverage)
Provides additional liability protection above your base policy.
This is especially important for owners hosting high guest volume or managing multiple properties.
What Factors Affect Airbnb Insurance Cost in Indiana
Several state-specific and operational factors drive pricing for Airbnb insurance.
Property Location and Local Ordinances
Indiana doesn’t have a single statewide law governing short-term rentals—but many cities do.
Indianapolis requires hosts to register their property and comply with local zoning rules.
Bloomington has restrictions on non-owner-occupied rentals in certain zones.
South Bend and Fort Wayne are increasingly enforcing zoning compliance.
If your property operates outside local guidelines, insurers may decline coverage or increase premiums.
Weather-Related Risks
Indiana sits in a region prone to:
Severe thunderstorms and hail
Tornado activity
Winter freeze-related plumbing losses
At Wexford Insurance, we’ve seen a rise in water damage claims caused by frozen pipes in vacant Airbnb properties during winter months—especially when properties sit unoccupied between bookings.
Guest Turnover Frequency
A property booked every weekend presents significantly more exposure than one rented a few times per year.
More guests = more liability risk.
Property Type and Age
Older homes—common in areas like downtown Indianapolis—may have:
Outdated wiring
Plumbing issues
Structural concerns
These factors impact underwriting and pricing.
Amenities and Features
High-risk amenities increase premiums:
Pools or hot tubs
Fire pits
Roof decks
Waterfront access
Nate Jones, CPCU, ARM, CLCS, AU often advises Airbnb owners:
“Amenities help you book faster, but they also raise your liability exposure. You need your insurance to match that reality.”
Indiana-Specific Insurance Requirements for Airbnb Owners
While Indiana doesn’t mandate a specific “Airbnb insurance policy,” several laws and regulations impact your coverage needs.
Workers’ Compensation Requirements
Under Indiana law, if you have employees (such as cleaners on payroll, not independent contractors), you are required to carry workers’ compensation insurance.
You can learn more through the Indiana Department of Insurance:https://www.in.gov/idoi/
If you're hiring cleaners directly rather than using a third-party service, this is a major compliance issue.
Local Licensing and Registration Rules
Cities like Indianapolis require:
Property registration
Compliance with safety codes
Possible inspections
Failure to comply could:
Void your insurance coverage
Lead to claim denials
Liability Expectations in a Litigation Environment
Indiana is generally considered a moderate-litigation state, but liability claims still happen frequently—especially involving:
Slip and falls
Deck collapses
Poorly maintained stairs
A standard homeowners policy does not contemplate commercial guest use, which is why dedicated https://www.wexfordins.com/general-liability-insurance is essential.
Building Code and Safety Compliance
Local codes often require:
Smoke detectors in bedrooms
Carbon monoxide detectors
Proper handrails and exits
Insurers evaluate these during underwriting. Missing safety features can increase premium—or disqualify coverage entirely.
Key Insurance Coverages for Airbnb Rental Properties
Understanding your coverage options helps ensure your quote actually protects your business.
This is not a standard homeowners policy.
It’s a specialized policy designed for short-term rental activity and income generation.
Covers:
Structure
Furniture
Appliances
Fixtures
We recently worked with an Airbnb owner in Carmel whose guest caused a kitchen fire. Fortunately, their policy was properly structured, and repairs were covered—but without the correct classification, that claim could have been denied.
Protects against:
Guest injuries
Medical costs
Legal defense
This is one of the most important coverages you can carry.
If your rental becomes unusable due to:
Fire
Water damage
Storm damage
This coverage helps replace lost income during repairs.
Umbrella Insurance
Adds an extra layer of protection.
We often recommend this for:
Multi-property owners
High-value homes
Properties with pools or water exposure
How To Lower Your Airbnb Insurance Costs in Indiana
You don’t have to overpay for coverage—but cutting the wrong corners can be costly. Here are practical ways to reduce premiums:
Install safety features like smoke detectors, carbon monoxide detectors, and handrails
Use formal guest agreements and clear house rules
Limit high-risk amenities like trampolines or unsecured pools
Maintain the property—especially roofing, plumbing, and electrical systems
Bundle multiple properties under one policy if possible
Work with an independent agency like Wexford that can shop multiple carriers
Be transparent about rental frequency and platform usage
One of the biggest mistakes Nate Jones, CPCU, ARM, CLCS, AU sees is underreporting usage:
“Trying to save money by saying you only rent occasionally—when you’re booked year-round—is one of the fastest ways to get a claim denied.”
Frequently Asked Questions About Airbnb Insurance in Indiana
How much does Airbnb rental property insurance cost in Indiana?
Most Indiana Airbnb owners pay between $1,200 and $4,500 annually depending on coverage, property value, and rental frequency.
Does homeowners insurance cover Airbnb rentals?
No. Most homeowners policies exclude business activity, including short-term rentals.
Do Indiana laws require Airbnb hosts to carry insurance?
Not explicitly at the state level, but local ordinances and lender requirements may effectively make it mandatory.
Can I insure multiple Airbnb properties on one policy?
Yes. Many carriers allow portfolio policies, which can simplify management and reduce cost.
What happens if I don’t disclose Airbnb use to my insurer?
Claims can be denied. This is one of the most common—and costly—mistakes we see.
Why Indiana Airbnb Owners Choose Wexford Insurance
At Wexford Insurance, short-term rental coverage is not new to us—we’ve worked with property owners across Indianapolis, Greenwood, Carmel, and beyond who rely on Airbnb income.
What sets us apart is our approach.
As an independent agency, we represent multiple insurance carriers. That means we can compare policies across the market—not just quote one company and hope it fits.
Nate Jones, CPCU, ARM, CLCS, AU—who studied Insurance and Risk Management at Indiana State University—brings a deep underwriting perspective to every account we write. Having worked as an underwriting manager, he understands exactly how carriers evaluate Airbnb risk.
We’re also a Trusted Choice agency, meaning we’re committed to transparency, education, and long-term relationships—not quick transactions.
At Wexford Insurance, we’ve seen firsthand that the right policy structure can make all the difference. We’ve also seen what happens when it’s done wrong.
Get an Airbnb Insurance Quote from Wexford Insurance
If you own—or are planning to operate—an Airbnb rental in Indiana, the best next step is getting a customized quote based on your specific property and usage.
Our team will walk through:
Your risk exposure
Your current coverage (if any)
Gaps that need to be addressed
Multiple carrier options
We’ll make sure you understand what you’re buying and why.
Our office address is:107 N State Road 135, STE 304, Greenwood, IN 46142
Call us directly:317-942-0549
Or request a quote online:www.wexfordins.com
