3 Reasons Why you Need Vacation Rental Insurance for Your Airbnb
Caroline Knecht

3 Reasons Why you Need Vacation Rental Insurance for Your Airbnb

Vacation property owners who choose to rent their property to others can find it’s an easy way to earn extra money. However, property owners sometimes do not consider the potential risks that can come with such rental arrangements and mistakenly believe their homeowners or landlord insurance will protect them.

When you list your property online on sites like Airbnb, Vrbo or HomeAway, and money changes hands, you’re engaging in a business activity and the stakes go up. Property owners face risks associated with property damage, liability, and lost income that homeowners or landlord policies typically don’t address.

Here are three key reasons why you can’t rely on your homeowners or landlord insurance to protect your vacation rental property.

Homeowners and landlord insurance won’t defend you from guest-related damage

Vacationers can damage your property, fixtures, and belongings. Homeowners and landlord policies generally aren’t designed to cover damage caused by short-term renters. If coverage is available under a homeowners policy, it’s likely to be defined narrowly.

Commercial vacation rental insurance, on the other hand, is specifically designed for short-term rental usage and covers many types of property damage, including damage caused by renters.

Homeowners and landlord insurance won’t cover liability risks

Don’t ignore the genuine risks you have as a business owner when engaging in short-term rental activity. There are many ways a renter could be injured, even if you take all appropriate safety precautions. Homeowners and landlord insurance policies typically exclude liability for these types of injuries when they occur as a result of business activity. If a renter is injured during their stay, you can be held personally responsible and your assets could be at risk.

Commercial vacation rental insurance protects against liability for renters’ physical injuries, as well as liability and claims related to advertising. For example, let's say a guest is injured while staying at your vacation rental. They file a lawsuit to recover their medical costs, claiming that a loose handrail on your property caused their injuries. A commercial insurance policy would cover the cost of defending your claim and any damages or settlement payments (up to the policy’s limits).

Homeowners and landlord insurance won’t offer rental income protection

Unlike homeowners and landlord policies, vacation rental property insurance offers rental income protection in the event property damage requires you to stop renting the unit temporarily. When loss of income protection is triggered by a covered event, the insurance company pays the cost of repairing your property and the rental income you lose while your property undergoes repairs.

If you rent out your vacation home, you need vacation rental insurance

Outside of some limited exceptions, homeowners and landlord policies usually don’t provide the coverage you need to protect your vacation rental property. Commercial vacation rental insurance, on the other hand, can cover property damage, liability claims, lost income and more. See how these two policy types compare by downloading our free See how these two policy types compare by downloading our free Homeowners versus Vacation Rental Insurance guide.


Get the Protection You Need Today

CBIZ Vacation Rental Insurance is a comprehensive policy designed for your short-term rental business. Are you ready to get a quote? It’s quick and easy! All we need is some basic information about your rental property. You can also contact our sales professionals at 888.883.5696 between 9 a.m. and 5 p.m. MST, Monday – Friday, or anytime via email at VacationRentalSales@cbiz.com.


This blog may contain scenarios that are provided as examples only. In an actual claim situation, 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.