Is Short-Term Rental Insurance Required for Airbnb Hosts?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 6
- 3 min read
Renting out your property on Airbnb can be a great way to earn extra income, but it also comes with risks that many hosts overlook. From guest-caused damage to liability claims, relying solely on Airbnb’s built-in protections may leave you exposed. So, is short-term rental insurance required for Airbnb hosts? Legally, it may not be mandatory in all areas—but it’s absolutely essential if you want full protection.
At Wexford Insurance, we specialize in rental property insurance for Airbnb hosts, vacation homes, duplexes, condos, and more. In this blog, we’ll break down why short-term rental insurance is critical, what it covers, and how it compares to Airbnb’s AirCover.
Why Homeowners Insurance Isn’t Enough
Most homeowners' insurance policies are designed for owner-occupied residences. Once you start renting out your property—even occasionally—it’s considered a business activity, which is typically excluded from standard coverage. That means if a guest damages your property or gets injured, your insurer may deny the claim.
Some insurers offer “home-sharing” endorsements, but these are often limited in scope and may not apply to frequent rentals or entire-home listings.
What Is Short-Term Rental Insurance?
Short-term rental insurance is a specialized policy designed for properties listed on platforms like Airbnb and VRBO. It covers the unique risks associated with hosting guests, including:
Property damage caused by guests
Liability protection 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 outdoor equipment
Unlike homeowners or landlord insurance, short-term rental insurance is built for the realities of hosting—frequent guest turnover, personal use, and business-related risks.
Airbnb’s AirCover: Helpful, But Not Enough
Airbnb offers AirCover for Hosts, which includes:
Up to $1 million in liability coverage
Up to $3 million in damage protection
Coverage for pet damage and cleaning costs
Income loss protection for canceled bookings due to guest damage
While AirCover is free and automatically included with every booking, it has significant limitations. It only applies during guest stays, doesn’t cover wear and tear, and may exclude certain types of damage or liability. Claims can also be slow and difficult to resolve.
Why You Need Dedicated Coverage
Even if Airbnb provides some protection, it’s not a substitute for a comprehensive insurance policy. Without proper coverage, you could be left paying out-of-pocket for:
Guest injuries
Legal defense costs
Structural damage
Theft or vandalism
Lost income during repairs
Short-term rental insurance ensures you’re protected before, during, and after guest stays.
Wexford Insurance: Your Go-To for Airbnb Coverage
At Wexford Insurance, we understand the unique needs of Airbnb hosts. Whether you rent out a cabin, condo, duplex, or lake house, we offer:
Tailored short-term rental insurance
Flexible coverage options for part-time or full-time hosts
Expert guidance to help you choose the right policy
We’re your trusted partner for protecting your property, income, and peace of mind.
Final Thoughts
Short-term rental insurance isn’t just a smart investment—it’s a necessary safeguard for Airbnb hosts. With Wexford Insurance, you get reliable protection tailored to your rental business. Contact today!
Frequently Asked Questions:
1. Is short-term rental insurance legally required?
Not always, but it’s strongly recommended to avoid costly risks.
2. Is Airbnb’s AirCover enough?
No. It’s limited and doesn’t replace full insurance coverage.
3. Can homeowners' insurance cover Airbnb rentals?
Usually not. You’ll need a dedicated short-term rental policy.