Top 5 Gaps in Standard Home Insurance for Vacation Rentals
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
If you rent your property on Airbnb, Vrbo, or other short-term rental platforms, your standard homeowners insurance may not cover all the risks associated with hosting guests.
Understanding these gaps is critical to protecting your property, income, and liability. Many owners discover too late that their policy excludes short-term rental activity, leaving them vulnerable to costly claims.
1. Guest-Caused Property Damage
Most homeowners policies exclude damage caused by paying guests. This means if a guest accidentally breaks furniture, stains carpets, or damages appliances, your claim could be denied. Vacation rental insurance covers these risks.
2. Liability for Guest Injuries
Standard policies cover liability for residents, but short-term rental guests may not be included. Slip-and-fall accidents, pool injuries, or other mishaps could result in lawsuits that homeowners insurance won’t fully cover.
3. Loss of Rental Income
If your property becomes uninhabitable due to a covered peril (like fire or storm), homeowners insurance typically does not compensate for lost rental income. Vacation rental insurance ensures you can recover income you would have earned during downtime.
4. Contents Coverage for Guest Use
Homeowners insurance usually protects personal belongings for owner use, not items used by guests. Furniture, electronics, linens, and décor that guests use may not be covered under a standard policy.
5. Limited Coverage for Certain Natural Disasters
Homeowners policies may exclude certain disasters common in tourist areas, like floods or earthquakes. Vacation rental insurance can include these risks, sometimes as optional add-ons, ensuring comprehensive protection.
Why Wexford Insurance Is a Smart Choice
Wexford Insurance specializes in vacation rental coverage that fills these gaps. We help property owners choose policies that protect property, liability, and income—so you can host with confidence.
