What Does Vacation Rental Insurance Cover? Liability, Property Damage & More
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
Vacation rental insurance is essential for anyone renting out their property on a short-term basis. Many homeowners assume their standard policy or platform protections are enough—but they often leave gaps in coverage that can be costly.
Understanding exactly what vacation rental insurance covers helps you protect your property, liability, and income while hosting guests.
Property coverage protects the physical structure of your rental home as well as permanent fixtures. This includes damage caused by:
Guests (accidental or intentional)
Fire, storms, or natural disasters
Vandalism or theft
Many homeowners policies exclude business activity, meaning that short-term rental damage may not be covered. Vacation rental insurance fills that gap.
2. Contents Coverage
Contents coverage protects items used by guests, such as:
Furniture and décor
Electronics and appliances
Linens, dishes, and kitchen equipment
This coverage ensures that the cost to repair or replace belongings isn’t coming out of your pocket.
Liability coverage protects you if someone is injured on your property. This includes:
Slip-and-fall accidents
Injuries from pools, hot tubs, or other amenities
Legal fees if a guest sues
Even a single injury claim can be financially devastating without proper liability coverage.
4. Loss of Rental Income
If your property becomes uninhabitable due to a covered event—like a fire or storm—loss of rental income coverage compensates you for the income you would have earned during that time.
5. Optional Coverage & Add-Ons
Some policies offer additional protections, such as:
Coverage for certain natural disasters (flood, earthquake)
Equipment breakdown insurance
Platforms like Airbnb and Vrbo may provide limited host protection, but these are not substitutes for a full insurance policy.
Why Wexford Insurance?
Wexford Insurance helps vacation rental owners secure policies that cover property, liability, and lost income—without paying for unnecessary extras. Our team understands short-term rental risks and can help you select the best coverage.
