Beautiful vacation rental property with a welcoming view

As an experienced Superhost, I understand the importance of protecting your property and ensuring a seamless experience for your guests. One of the key elements in managing a successful vacation rental business is having the right insurance coverage. In this blog, I will walk you through the best insurance options available for short-term rentals, their pros and cons, and how to choose the best one for your needs.

Importance of specialized insurance for vacation rentals

Why You Need Short-Term Rental Insurance

Standard homeowner's insurance policies typically do not cover short-term rental activities, leaving hosts vulnerable to various risks such as property damage, theft, and guest injuries. Specialized short-term rental insurance provides comprehensive coverage tailored to the unique needs of vacation rental properties.

My Personal Story: Learning the Hard Way

When I first learned that Airbnb's coverage was a complete and utter letdown, it was a harsh reality check. A guest damaged our hot tub valet and shattered the hot tub lid. With the parts replacements and labor costs, the total damage was almost $1,300. The guest refused to pay and denied they caused the damage. Despite having photos, a stellar brand reputation, and an average 5-star rating with hundreds of bookings, Airbnb made it impossible to reimburse us. I was utterly shocked and decided to do all the research I could on insurance to make sure it never happened again. All the fees Airbnb takes from hosts, yet offers such terrible coverage, made me realize the importance of doing our due diligence to cover ourselves against loss for our assets.

Top Short-Term Rental Insurance Providers

Here are some of the top-rated insurance providers for vacation rental hosts, along with their estimated costs, pros, cons, and additional information.

1. Proper Insurance

Proper Insurance logo
  • Estimated Annual Cost: $1,500 - $2,500

  • Pros:

    • Comprehensive coverage including property, liability, and guest injury

    • No limit on guest damage

    • Covers amenities like pools and hot tubs

    • 3-minute application process

    • Requires management of at least 10 properties

  • Cons:

    • Higher cost

    • Some users report slower claims process

  • Reviews:

    • "Proper Insurance has been a game-changer for my vacation rental business. The coverage is extensive, and the peace of mind is invaluable." – John D.

  • Contact: Proper Insurance

2. Safely

Safely insurance logo

Safely Insurance policies are designed to cover your home and assets only when you need it. Every reservation is covered, and you only pay for coverage when a guest is staying in your home. If a guest causes your house to burn down, your home’s structure is covered for up to $1,000,000, including contractor labor and building materials. Bodily injury is also covered as part of the $1,000,000 coverage.

For theft or damage to personal property, Safely covers up to $10,000. Exclusions include damage not caused by the guest, weather-related damage, and liability related to recreational equipment, pets, bed bugs, and more. Safely's policies are transparent, aiming to make the claims process as simple and straightforward as possible.

How to Make a Claim with Safely

  1. Take Pictures of the Damage: Provide basic evidence with photos, receipts, or estimates.

  2. Submit Your Claim: Enjoy a stress-free claims process without confronting guests.

  3. Let Safely Handle the Rest: Receive fast payouts and make necessary repairs or replacements.

  • Estimated Annual Cost: $800 - $1,200

  • Pros:

    • Guest screening included

    • Quick claims process

    • Broad coverage across platforms

    • Coverage only active during guest stays

  • Cons:

    • Lower coverage limit ($1,000,000)

    • Additional insurance needed for complete coverage

  • Reviews:

    • "Safely has made managing my vacation rentals so much easier. The guest screening feature is fantastic, and the claims process is hassle-free." – Mary S.

  • Contact: Safely

3. Superhog

Superhog insurance logo

Superhog focuses on providing best-in-class SaaS products for the vacation rental industry through cutting-edge technology and data-driven solutions. While not directly partnered with Airbnb, Superhog works closely with providers like Guesty, Hostfully, Hostaway, and Enso Connect. They offer property managers and hosts reliable methods for securing security deposits and damage waivers, promoting a worry-free experience. Damage waivers are paid by guests and waive their financial responsibility up to a set amount for accidental damage during their stay.

  • Estimated Annual Cost: $300 - $500

  • Pros:

    • High damage protection ($5,000,000)

    • AI-driven guest screening

    • Works closely with providers like Guesty, Hostfully, Hostaway, and Enso Connect

    • Allows hosts to request damage waivers or deposits from guests

  • Cons:

    • Requires separate insurance for property and liability

    • Focuses mainly on damage protection

  • Reviews:

    • "Superhog has been an excellent addition to my insurance plan. The guest screening has saved me from several potential issues." – David R.

  • Contact: Superhog


4. CBIZ Vacation Rental Insurance

CBIZ insurance logo

CBIZ offers vacation rental insurance that covers property damage, commercial general liability, business income, and contents/business personal property. Their policies protect against a wide range of risks, including guest negligence and natural disasters. The cost of vacation rental insurance varies based on several factors, including amenities and the need for immediate repairs.

  • Estimated Annual Cost: $1,500 - $2,000

  • Pros:

    • Replaces homeowner policy

    • Comprehensive coverage including property damage, theft, and liability

  • Cons:

    • May involve a more complex claims process

    • No guest screening included

  • Reviews:

    • "CBIZ offers solid coverage for my vacation rentals. It's comprehensive, and I feel secure knowing my properties are protected." – Sarah L.

  • Contact: CBIZ

Additional Information on Insurance Policies

Airbnb’s AirCover Damage Protection

Airbnb’s AirCover Damage Protection is more like a warranty program in which they will make you contact the guest for proof of what happened. If the guest says, “It wasn’t me,” and refuses to pay for the damage, Airbnb has the complete authority to decide whether to fulfill that claim on your behalf. Airbnb’s AirCover Damage Protection explicitly states that it is not insurance, so you are not listed as insured on their protection. Unfortunately, many hosts have come to the hard realization after a claim at their short-term rental that they have no power with Airbnb’s AirCover.

Additionally, Airbnb’s AirCover does not extend off of their booking platform, so if you ever short-term rent directly or on Vrbo, Booking.com, etc., you won’t even have the supplemental hope of AirCover.

Additional Tips for Choosing the Right Insurance

  • Evaluate Your Needs: Consider the specific needs of your rental property, such as location, amenities, and guest volume.

  • Compare Quotes: Obtain quotes from multiple providers to compare costs and coverage options.

  • Check Reviews: Read user reviews to understand the experiences of other hosts with the insurance providers.

  • Consult an Expert: If in doubt, consult with an insurance advisor who can help tailor a policy to your needs.


Legal disclaimer icon

Disclaimer

This blog is for informational purposes only. I am not liable for any decisions made based on this information. Please conduct your own research and consult with insurance professionals before making any decisions regarding your insurance coverage.

Happy vacation rental guests at a well-maintained property

Choosing the right insurance for your vacation rental business is crucial for protecting your investment and ensuring a smooth operation. By understanding the available options and their benefits, you can make an informed decision that best suits your needs. Stay protected and keep your business thriving!

For more information on each insurance provider, visit their websites:

Note from the Author

Christian Stone is a seasoned expert in vacation rentals and property management with years of experience in the real estate industry. As a Superhost, Christian has managed numerous vacation rental properties, providing guests with exceptional experiences while ensuring the properties are well-maintained and profitable. Christian's deep knowledge in the field, combined with her passion for sharing insights, makes her a valuable resource for anyone looking to succeed in the vacation rental business.

Let's Be Friends!

Thank you for reading! As an expert in vacation rentals and property management, I hope you found this blog post helpful and informative.

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