The Importance of Short-Term Rental Insurance

Real estate investment opportunities are changing rapidly with the growth of companies such as Airbnb and VRBO (Vacation Rentals By Owner). For some, these short-term rentals can provide as much or more income than the standard long-term rentals. Real estate investors often are not aware that the length of the tenants stay can determine the type of insurance policy that would provide the proper coverage and don’t think to mention this to the insurance carrier or the agent when getting coverage in place.

Why should you let your insurance agent know that you are doing short-term rentals? Most standard landlord policies stipulate that the length of the lease can not be less than 6 months.  It is important that anyone considering using their investment property for short-term rentals consult a license insurance agent to make sure that their policy will cover short-term leases.  If a claim is filed on a property that is being used for short-term rentals and the policy covering the property states that the lease must be a minimum of 6 months, the claim can be denied, leaving the owner to make repairs or rebuild out of his own pocket.  It is very easy for claims adjustors to find out how properties are being used by simply “googling” the address and finding links to one of the many websites for short-term rentals.  Surprisingly, the premium for the short-term rental policies are not much more than the standard rental property insurance so it really is in the best interest of the owner to have the proper policy in place for their investment properties. 

So Why Short-Term Rental Insurance?

·       Most Landlord policies stipulate the length of the lease can be no less than 6 months.

·       If you are not properly covered, claims can be denied, and any damages will be paid out of pocket.

·       A short-term rental policy is often not much more than the standard Landlord policy.


If you have any questions please contact me at 512-913-9637, Luci Temple Agency!

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