Do You Need Special Insurance for Vacation Rentals?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 6
- 3 min read
Owning a vacation rental—whether it’s a lake house, cabin, condo, or townhome—can be a rewarding investment. But renting it out to guests through platforms like Airbnb or VRBO introduces risks that standard homeowner's insurance often doesn’t cover. So, do you need special insurance for vacation rentals? The short answer is yes.
In this blog, we’ll explain why vacation rental insurance is essential, what it covers, and how Wexford Insurance helps protect your property and income.
Why Homeowners Insurance Isn’t Enough
Most homeowners' insurance policies are designed for owner-occupied residences. When you rent out your property—even occasionally—it’s considered a business activity, which is typically excluded from coverage.
That means if a guest damages your property or gets injured during their stay, your claim could be denied. Some insurers offer limited “riders” for occasional rentals, but they often come with strict conditions and coverage gaps.
What Is Vacation Rental Insurance?
Vacation rental insurance, also known as short-term rental insurance, is a specialized policy that covers:
Property damage caused by guests
Liability protection if a guest is injured
Loss of rental income if your property becomes uninhabitable
Coverage during vacancy periods
Protection for amenities like pools, hot tubs, and recreational equipment
Unlike homeowners or landlord insurance, vacation rental insurance is designed for properties that are rented out regularly, used personally, and sometimes left vacant.
What Does Vacation Rental Insurance Cover?
Here’s what a comprehensive policy typically includes:
1. Property Protection
Covers structural damage, theft, vandalism, and damage caused by guests—even during vacancy periods.
Protects you if a guest is injured or their belongings are damaged. This includes legal fees and medical expenses.
3. Loss of Income
If a fire, flood, or other covered event makes your property uninhabitable, this coverage reimburses lost rental income.
Covers accidental or malicious damage caused by renters—something homeowners' insurance usually excludes.
Why You Need Specialized Coverage
Vacation rentals often have multiple use patterns—rented short-term, used by the owner, and left vacant. This complexity requires a policy that adapts to all scenarios. Standard homeowners or landlord insurance typically doesn’t offer this flexibility.
Additionally, platforms like VRBO and Airbnb offer basic host protection, but these policies have significant limitations. They may not cover all types of damage or liability, and they only apply during booked stays.
Why Choose Wexford Insurance?
At Wexford Insurance, we specialize in protecting rental property owners. Whether you own a vacation home, duplex, cabin, or condo, we offer:
Tailored coverage for short-term and long-term rentals
Protection for guest stays, personal use, and vacancy periods
Expert guidance to help you choose the right policy
We’re your go-to source for vacation rental insurance and all things related to rental property ownership.
Final Thoughts
Vacation rental insurance isn’t just a smart choice—it’s essential for protecting your property, income, and peace of mind. With Wexford Insurance, you get expert coverage tailored to your unique rental needs. Contact Wexford Insurance today!
Frequently Asked Questions
Can I rely on Airbnb or VRBO’s host protection?
No. While platforms offer basic coverage, it’s limited and only applies during booked stays. It’s not a substitute for full insurance.
Is vacation rental insurance more expensive?
Yes, but for good reason. These policies cover more risks and offer broader protection than standard homeowners' insurance.
Do I need insurance if I only rent occasionally?
Even occasional rentals can void your homeowner's policy. If you earn income from guests, you need proper coverage.
