Are you considering listing your home on Airbnb or Vrbo? Short-term rentals (STRs) offer an appealing opportunity for owners to earn extra income from each reservation and stay. However, many new hosts discover that renting to guests involves hidden risks that standard insurance policies don’t always cover. Here’s what you should know about protecting your short-term rental – and how CBIZ Vacation Rental Insurance can help you safeguard your account, property, and income.
Why Standard Insurance Might Not Be Enough
A common misconception among STR hosts is that a standard homeowners or landlord insurance policy will cover every stay or reservation. In reality, these policies rarely provide the protection you need when renting your property to paying guests. Once you begin to operate your rental property as a business, you need specialized STR insurance that accounts for all the unique risks associated with short-term rental activity.
What AirCover Really Offers
Airbnb’s AirCover program provides some reassurance, offering $1 million in host liability coverage and $3 million for guest-caused damage per reservation. However, there are still limitations that are worth noting. For example, everyday wear and tear, weather damage, and accidents that occur during cleaning are not covered, and rental income lost due to canceled bookings is often not reimbursed.
Additionally, the claims process can be slow, requiring strict documentation and involving third-party processors, which makes it more challenging to access prompt support through your host account.
The Coverage Gaps You Need to Know About
Despite its broad protections, AirCover doesn’t address every risk tied to your STR. Common gaps include:
- Intentional or unreported guest damage incurred during a stay or reservation
- Regular wear and tear, such as scuffed floors or faded furniture, from ongoing renting
- Weather-related losses from storms, floods, or other natural events
- Liability issues related to things like mold or allergens
- Lost income if repairs make your rental unavailable for future reservations
For hosts who count on consistent rental income or manage multiple accounts, these gaps can lead to costly disruptions and loss of access to your STR business.
How CBIZ Vacation Rental Insurance Fills the Gaps
CBIZ Vacation Rental Insurance is a specialized option built specifically for hosts renting on Airbnb, Vrbo, and other STR platforms. Our policies provide comprehensive coverage, filling the gaps left by AirCover and standard policies that may fall short. With CBIZ, STR hosts can secure their rental investments, receive faster claims service, and benefit from options tailored to each property and account.
Beyond Insurance: Protecting Your Short-Term Rental
Securing comprehensive insurance is just one of the many tactics short-term rental hosts should leverage to manage risk. You can further protect your rental and reservation success by:
- Setting clear, detailed house rules for every guest’s stay
- Screening guests for each reservation
- Performing regular property checks between stays and maintaining maintenance records
- Automating communications, such as check-in and check-out instructions and reminders, for seamless access
- Documenting all guest interactions, repairs, and incidents
Ensure Peace of Mind with CBIZ
Don’t leave your STR business, rental property, or income exposed. Knowing what your coverage does – and doesn’t – include can help you fill crucial gaps with specialized insurance options designed to sustain short-term rental success.
Ready to explore custom insurance solutions from CBIZ? Request a 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.