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Securing Your Investment: A Guide to Short Term Rental Insurance

Renting out your property on sites like Airbnb or Vrbo has become an increasingly popular way to earn extra income. However, opening up your home to strangers also comes with risks. That's why getting the right short term rental insurance is absolutely essential.

This comprehensive guide will provide an overview of short term rental insurance, explain why it's so important for hosts, outline the key coverage options, and provide actionable tips for finding the best policy. We'll also highlight Steadily, a top provider of customized and affordable short term rental insurance.

What is Short Term Rental Insurance?

Short term rental insurance, sometimes called vacation rental insurance, is a policy designed specifically to cover rental properties listed on sites like Airbnb, Vrbo, and others.

Standard homeowners or renters insurance usually does not provide sufficient protection for short term rentals. That's because these policies are intended for long term tenants, not temporary guests staying for a few nights or weeks.

Short term rental insurance fills this gap by offering tailored coverage options to match the unique risks faced by rental property owners.

Why Short Term Rental Insurance Matters

Insuring your short term rental property is critically important for several reasons:

1. Protect against guest damages: Renters staying for a short time typically don't treat a space as carefully as long term tenants. Accidental or intentional damages from guests are common. The right insurance can help pay for repairs or replacements.

2. Prepare for the unexpected: Fires, water leaks, theft, and even riots are rare but can be financially devastating events. Comprehensive insurance helps hedge against a range of catastrophic losses.

3. Avoid expensive liability claims: If a renter gets injured on your property you could be sued for negligence. Liability coverage helps pay legal fees and claim settlements to protect your assets.

4. Qualify for rental platforms: Major sites like Airbnb now require hosts to carry insurance in order to list properties, so a policy is mandatory to earn rental income.

5. Recover lost rental income: If an incident forces you to close your unit for repairs, insurance can pay a portion of the rental income you would have otherwise earned.In short, short term rental insurance gives owners peace of mind and financial security to confidently operate their property as a business. It's a small upfront investment that pays major dividends over the long run.

Key Short Term Rental Insurance Coverages

While policies differ across providers, most short term rental insurance plans include a combination of the following key coverages:

Property damage

  • Fire: Destructive blazes can completely gut a home. Fire coverage helps rebuild.
  • Water: Burst pipes and appliance leaks are hugely expensive. Water damage coverage aids recovery.
  • Windstorm: Roof and siding repairs from hail, storms, etc. can be covered.
  • Vandalism: Guests sometimes damage furnishings or steal property.
  • Theft: Belongings stolen from the unit or shared laundry rooms may be covered.

Loss of rental income

  • Helps replace income lost while making significant repairs after a major covered loss.

Liability insurance

  • Protects from expensive negligence lawsuits if a guest gets injured on the property.

Additional living expenses

  • Pays for owners' temporary housing costs if the unit becomes unlivable after a covered loss.

As you can see, short term rental insurance delivers wide-ranging protection against both property losses and liability claims. It's truly an essential investment.

Finding the Best Short Term Rental Insurance

Where you buy short term rental insurance is just as important as making sure you have coverage. Follow these tips to find a top provider:

Compare quotes: Premiums can vary dramatically between insurers, so shop around for the best rate.

Look for specialization: Seek out providers that specialize specifically in short term rental coverage vs. adding it as an add-on.

Prioritize customization: Every rental property has unique risks. Look for the ability to tailor coverages.

Check provider ratings: Select an insurer that maintains strong financial ratings from agencies like A.M. Best.

Consider additional discounts: Many insurers offer premium discounts for smart home devices and other risk-reducing measures.

Why Choose Steadily for Short Term Rental Insurance

As you assess short term rental insurance providers, be sure to consider Steadily. Steadily offers customized short term rental insurance policies with premium savings of up to 25%.

They provide an online quote tool to preview pricing and make side-by-side comparisons simple. Their knowledgeable agents can also help you understand policy options and recommend the right coverages for your particular rental property.

On top of affordable rates, Steadily short term rental insurance also includes valuable risk management advice to help hosts prevent claims and operate their properties safely. This proactive guidance is invaluable for new hosts learning the ropes.

With fast online quotes and an emphasis on education, Steadily delivers both financial value and genuine peace of mind.

Final Thoughts

Renting out property on sites like Airbnb might seem like easy money. But without adequate insurance, short term rentals carry substantial financial risk. Safeguard your rental investment against every kind of loss with a tailored short term insurance policy. Compare options to find the most affordable premiums as well as the coverage that fits your specific needs.

Platforms like Steadily make getting insured simple and budget-friendly. Don't wait to secure your rental property—a short term rental insurance policy delivers security and allows you to earn rental income with confidence.

Reveal your property’s rental profitability

Buy this property and list it for short term rental.