Short-term rentals are a commercial use of residential property. Standard homeowner and landlord (DP-3) forms are written for long-term occupancy and routinely deny claims that arise from paying guest stays.
Whether you operate full-time on Airbnb, list a few weekends a month on VRBO, or run a peak-season vacation rental, the right policy is a purpose-built STR form. Below is what those policies cover, what they don't, and why platform "host protection" alone is not enough.
Why standard homeowner and landlord policies don't cover STR
Insurance carriers price standard residential policies based on long-term, single-occupancy use. Short-term rentals introduce different risks:
- High guest turnover (different people every few days).
- Guests who are unfamiliar with the property and its hazards.
- Higher likelihood of parties, alcohol use, and accidents.
- Pool, hot tub, fire pit, and amenity liability that residential carriers don't price for.
- Theft and damage from short-stay guests.
Buried in most homeowner and landlord policy language are conditions that exclude or limit coverage for "rental periods of less than 30 days," "transient occupancy," or "business use." If you have a covered loss during STR activity, the claim can be denied.
What an Airbnb or VRBO host policy actually covers
A purpose-built short-term rental policy typically includes:
- Building and contents at replacement cost, written for STR occupancy.
- Host liability for guest injuries and property damage to others, typically $1M to $2M per occurrence.
- Amenity liability for pools, hot tubs, fire pits, trampolines, and other higher-risk features (subject to underwriting).
- Business income for lost rental income if a covered loss takes the property out of service.
- Theft of contents by guests.
- Malicious damage by guests (subject to deductible).
- Optional: bedbug coverage, which standard policies almost always exclude.
Don't rely on Airbnb's host protection
Airbnb's "Host Liability Insurance" and "AirCover" provide some baseline protection, but they have meaningful gaps:
- Limits and sublimits that may be inadequate for higher-value claims.
- Coverage tied to bookings on Airbnb only, not to other channels (VRBO, direct, off-platform).
- No coverage for the structure itself in many scenarios (just liability).
- Long claim processes with the platform, not a real adjuster relationship.
- Exclusions for specific amenity-related claims and certain damage types.
Treat platform protection as a backstop. Carry a real STR policy as your primary coverage.
Commercial exposure triggers
A few specific situations push your coverage from "borderline" to "definitely commercial" and require the right form:
- You list the property on multiple platforms (Airbnb, VRBO, direct booking).
- The property is held in an LLC.
- You file the rental income on Schedule C as a business (not Schedule E as passive rental).
- Average length of stay is under 30 days.
- You provide hotel-like services (cleaning between stays, hosted check-in, on-site amenities).
Any of these and you need an STR-specific policy. All of them and you may need a small commercial package depending on the scale.
Amenity liability: pools, hot tubs, and high-risk features
STR properties often have amenities that drive bookings and also drive claims. Pools, hot tubs, fire pits, trampolines, ATVs, and docks are the recurring drivers of injury claims.
Most STR carriers will write properties with these amenities, but underwriting often requires:
- Photo documentation of amenities and safety equipment.
- Safety covers, fencing, and lockable gates for pools and hot tubs.
- Posted house rules acknowledging amenity risk.
- Higher liability limits (often $1M to $2M per occurrence).
Some specific amenities (trampolines, certain dog breeds, ATVs) are excluded by some carriers entirely. We know which carriers will write what, so you don't waste time on declined submissions.
Business income for STR
Business income (also called "loss of income" or "rental loss") pays the rental income you would have collected during a covered shutdown. For STR properties this is often more meaningful than long-term rental loss of rents because daily rental rates are higher and properties book months in advance.
Standard limits are 12 months of historical rental income. For peak-season properties, look for forms that calculate based on peak rates rather than annual averages.
Carriers that write STR
Specialty STR carriers include Steadily, REInsurePro, Obie, Proper, and Slice. Plus several E&S carriers that write STR with higher limits and more flexibility for unusual properties.
We work across multiple STR markets. Send us the address, average nightly rate, channels you list on, amenities, and any prior claims, and we will quote it. Most STR quotes turn around the same day.