Short-Term Rental Insurance: Endorsement vs. Stand-Alone Policy Explained

Nate Jones, CPCU, ARM, CLCS, AU
5 days ago
2 min read

If you own a short-term rental, understanding your insurance options is crucial. Many property owners wonder whether to add a short-term rental endorsement to their existing homeowners policy or purchase a stand-alone vacation rental insurance policy.

Making the right choice can protect your property, liability, and rental income while keeping you compliant with regulations.

What Is a Short-Term Rental Endorsement?

A short-term rental endorsement is an add-on to your existing homeowners or landlord policy. It expands coverage to include:

Guest-caused property damage
Limited liability for guest injuries
Some short-term rental business activities

Pros:

Usually less expensive than a stand-alone policy
Convenient addition to an existing policy

Cons:

Coverage limits may be lower
May not cover all risks like lost rental income or theft
Policy terms can vary significantly between insurers

What Is a Stand-Alone Vacation Rental Policy?

A stand-alone policy is a dedicated insurance plan for short-term rental properties. It provides comprehensive coverage for:

Property damage from guests or natural disasters
Liability protection for guest injuries and lawsuits
Loss of rental income if the property is uninhabitable
Contents coverage for furniture, electronics, and linens

Pros:

Broader coverage tailored specifically to vacation rentals
Often includes optional add-ons like flood or earthquake coverage
Typically higher coverage limits than endorsements

Cons:

Higher premium than an endorsement
Requires separate policy management

Key Considerations for Choosing Coverage

When deciding between an endorsement and a stand-alone policy, consider:

Rental Frequency – Full-time rentals may require a stand-alone policy.
Property Value & Contents – High-value properties or furnished rentals may need broader coverage.
Liability Risks – Pools, hot tubs, or multiple guests increase potential liability.
Local Regulations – Some cities require specific short-term rental coverage.

Why Wexford Insurance Can Help

At Wexford Insurance, we help property owners compare endorsements vs. stand-alone policies to find the best fit for their vacation rental. We ensure coverage for: