Ward, Hayden

The Difference Between Short-Term and Long-Term Rental Insurance

When investing, finding a property that will have the greatest return on investment (ROI) is crucial. Short-term rentals have become increasingly popular over the past few years. On the other hand, long-term rentals provide more stability. Though these types of rental properties have commonalities, they are also extremely different. As a result, determining the correct insurance policy to protect them can be challenging. Not all policies are created equal and there are an overwhelming amount of options to select.

Which type of insurance do you need for your property? Keep reading to find out!

Short-Term Rental Property

A short-term rental is a property that is rented in less than six-month increments and has multiple renters throughout the year. These properties are also known as vacation rentals, Airbnb’s or executive housing. This style of rental became popular over the last few years with the help of websites such as Airbnb, VRBO and HomeAway. Some vacation rental owners will list their property on these sites when they are not using their home for a long period of time, while others use these homes only for commercial purposes.

Short-term rental properties can be a great investment and they also have positive effects on the sharing economy. According to BuinessBecause.com, a sharing economy is defined as an economic system in which assets and services are shared between private individuals.

Owners of short-term rentals can be eligible to deduct property expenses and tax breaks because of the duration of the stays. For more information on insuring your short-term rental, click here.

Long-Term Rental Property

A long-term rental is a residential listing where tenants live for 6 months or longer. Our long-term rental coverage option also includes landlord insurance and dwelling insurance.

Insurance coverage for long-term rental properties varies from the short-term rental requirements. Rental insurance for long-term properties through CBIZ includes:

  • Protection for multiple properties or properties with one to four units.
  • Protection for the owner’s property and covered belongings. Your tenants’ personal possessions are not covered under this policy.
  • Dwelling insurance is included. It covers the structure itself, but not the contents or land.

With long-term rental properties, owners can charge a high-security deposit that will be returned to the guest at the end of their tenancy, unless there is major damage to the property. This can provide owners with more peace of mind when it comes to renting out their properties for a long period of time.

Short-term or long-term, we’re here for you!

Providing excellent protection for your short-term rental home is one of our strengths. Now, we are expanding our coverage to not only serve your business but your long-term rental, secondary home or vacant property. Regardless of the occupancy stage of your property, we have an insurance solution for you. Begin your free quote today!


This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

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About Us

CBIZ Vacation Rental Insurance, a division of CBIZ Insurance Services,Inc., is the largest insurer of short-term vacation rental properties in the United States. As part of an $850 million New York Stock Exchange traded company (CBZ), we are the first broker to develop specific policy coverage to meet the needs for vacation rental properties and the amenities offered by these businesses. We have insured vacation rental properties since 2002.

The CBIZ Vacation Rental Insurance team knows insurance, specifically the risks and exposures related to short-term vacation rentals.We won't confuse you with technical "insurance speak" ~ our representatives are well versed in explaining your coverage in plain English. With hands-on, personal customer service, we guarantee swift communication and a 24/7 claims team that is ready to respond to your call any time of the day. As specialist in the industry, we leverage our knowledge and passion to ensure you and your business are adequately protected.