Knowledge BaseSpecial Coverage

Hidden Liability Risks in Short-Term Rental Properties

By

Investor Friendly Insurance

Published

2/15/2024

Read Time

12 min

Short-Term Rental Insurance Challenges

Airbnb and vacation rental properties face significantly different risks than traditional long-term rentals. Standard landlord insurance is inadequate for STR operations.

Liability Exposure

Frequent guest turnover creates higher liability exposure. Each new guest introduces new risks. Your policy must cover guest injuries and property damage claims.

Standard Policy Exclusions

Many landlord policies explicitly exclude short-term rentals. Even if not explicitly excluded, coverage may be denied due to the nature of the rental operation.

Host Liability vs Insurance Coverage

Airbnb and other platforms offer host protection, but it's limited. It typically doesn't cover all scenarios and has caps on coverage amounts.

Proper Coverage Strategy

Obtain specialized short-term rental insurance. Verify coverage includes guest liability, property damage, loss of rental income, and business interruption.

Disclosure and Compliance

Disclose the short-term rental operation to your insurance company. Maintain proper business licenses and permits for rental operation.

About This Article

Understanding the unique insurance challenges of Airbnb and vacation rentals.

Special Coverage12 min read

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