Finding the best insurance to cover your short-term Airbnb rental is one of the most important aspects of being an Airbnb host. Without a good insurance policy, you could be open to lawsuits and liability for any accidents or damages that happen when guests stay at your property.
I researched several insurance companies to find out which companies provide comprehensive short-term rental insurance and which ones do not.
Short Term Rental Insurance Companies: Who Provides Airbnb and Vacation Rental Insurance?
Insurance companies that provide short term rental insurance include:
- Proper Insurance
- CBIZ
- Slice
- Safely Insurance
- USAA
- Allstate
- American Family Insurance
- American Modern Insurance
- Zibo
Insurance companies that only provide Landlord insurance policies:
- Safeco
- State Farm
- Geico
- Liberty Mutual
Proper Insurance: The Best Short Term Rental Insurance
Proper Insurance is currently the nation’s leading insurance company for short-term rentals. Proper understands that your rental doesn’t fit into just one insurance category and therefore needs specialized coverage.
Proper Insurance offers a comprehensive commercial policy that completely replaces your existing homeowners’ insurance and includes business liable coverage. It also takes into consideration that your rental needs to be covered under different occupancy categories depending on the property’s purpose.
With Proper you will be covered in the following ways:
- Commercial: as a business when you are hosting guests
- Personal: if you use your property for your own residence
- Tenant: for long term rentals
- Unoccupied: when your property is not in use
Proper Insurance will cover loss of rental income, does not impose occupancy restrictions, and provides coverage to the whole premises, not just the home. The one negative I found with Proper is that they will raise the rate if the host lives on the property.
For more details about Proper Insurance and a comprehensive pros and cons list, check out our article, The Ultimate Proper Insurance Review. Or if you want to see premium comparisons between Proper Insurance, CBIZ, Slice, Safely, and more click here.
CBIZ: The Largest Insurer of Short Term Vacation Rentals
CBIZ led the insurance world as America’s first insurer of vacation rental properties, so they have a lot of experience in the business. CBIZ experts will customize an insurance policy to fit your rental needs. Their coverage includes:
- Property Damage Coverage: This includes replacement coverage for the building and contents, damages caused by guests, sewer and drain backups, and coverage for additional structures on the property.
- Commercial General Liability Coverage: Liability coverage will protect a host if a guest is injured on their property. CBIZ commercial liability coverage includes $2 million general aggregate, $1 million per occurrence, $1 million for personal injury, $5,000 in medical payments, legal fees, and property managers coverage.
- Business Income: As a rental host, you are a business owner and regular homeowner insurance will not cover you for lost revenue. CBIZ will cover the costs of repairs to your property as well as lost income you are unable to collect from renters during repairs.
- Contents and Personal Property: CBIZ not only covers your rental, the furniture, and fixtures, but coverage also extends to 100ft outside of the home so amenities like sheds are covered as well.
Slice Insurance: The “On Demand” Airbnb Rental Insurance
Slice is an innovative “on-demand” style insurance company. Its cloud-based platform uses AI, machine learning, and behavioral science expertise to build custom insurance policies.
With Slice, you can get an instant quote, monthly subscription policies, home share add-on coverages, and automated claims settlements.
Pros of Slice Insurance:
- Customizable so you only pay for the coverage you need.
- Additional coverage options with no deductible
- Easily submit claims via the web app
- Great for sporadic rentals
Cons of Slice Insurance:
- Does not replace your homeowner insurance so you will have to deal with two separate policies.
- You will have to remember to restart coverage with each stay.
- There are extra costs for coverage outside of basic replacements.
- Not available in every state
Safely Insurance: Short Term Coverage Plus Guest Screening
Safely Insurance provides rental insurance only when you have guests, so you aren’t wasting money paying for extra coverage. It is automatically attached to every reservation, so you don’t have to remember to reinstate the coverage like other on-demand policies.
What Does Safely Coverage Include?
- $1 million in home structure and bodily injury coverage
- $10,000 coverage for contents of the home
- Guest screening
- Coverage for homeowner, property manager, and guests
What Is Not Included with Safely Coverage?
- Force majeure
- Uninsured periods
- Losses that cannot be tied to an insured rental.
- Damages not caused by guests.
- Damages caused by weather or normal wear and tear.
- Liability related to use of recreational equipment, pets, bed bugs, invasion of privacy, injuries one guest may cause another, or damages by guest to neighboring property.
One stand-out feature of Safely insurance is their Guest Screening Services. With SafelyStay, Safely Insurance will screen your guests to see if they belong to an “unprotected class” which gives you the right to decline the guest.
Safely will check for convicted felons, people on the terrorist watchlist, sex offenders, identity fraud, and even guests who have caused damage in rentals before.
Safeco Insurance: Landlord Insurance for your Rental Property
Safeco Insurance offers Landlord insurance which is a little different from short-term rental insurance or vacation rental insurance. Generally, the be eligible for Landlord insurance, the rental unit needs to be continuously occupied by a tenant.
Safeco covers residential rentals, so if you have a second home that you rent, this would be a perfect option. This could be a single-family home, condo, duplex, or triplex. In most states, Safeco will allow you to insure up to 16 units.
What Coverage is Available Through Safeco?
- Extended Dwelling
- Premise Liability Coverage
- Wind and Hail
- Fair Rental Value
- Inflation Protection
What Cannot be Covered Through Safeco?
- Commercial property
- Unoccupied property
- Mobile or manufactured homes
- Historic homes
- Homes with open foundation construction
- Homes with farming exposures
- Older homes with outdated electrical wiring
If your property is rented sporadically and you don’t have consistent renters in your property, Safeco is probably not the best insurance option for you. This is designed more for a long-term rental property.
Geico: Long Term Rental Property Insurance
Much life Safeco Insurance, Geico Insurance is geared more towards landlords who have long-term property rentals rather than a short-term vacation rental. When considering what type of insurance you need for your rental property, it is important to consider your tenant type. The three common types of tenants are:
- Long-term renters (more than six months)
- Occasional short-term renters
- Frequent short-term renters (Airbnb)
The type of renter you host will determine what kind of coverage you need.
Geico offers Landlord insurance coverage for properties that host the first type of tenant, long-term six-month or more rentals.
For a long-term rental, Geico will cover:
- Structure damage
- Liability situations
- Additional out-of-pocket expenses
- Landlord furnishings and appliances
- Lost rent due to property repairs
Not covered by Geico:
- Short-term or vacation rentals
- Water back-up
- Flood damage
USAA: Short-Term Property Rental Insurance with Home Sharing Coverage
USAA Rental Property Insurance offers a unique policy because it covers both long-term rentals like landlord insurance, and short-term rentals like in a home-sharing situation. USAA’s policy offers protection that regular home insurance does not offer like income replacement for lost rental income during repairs and personal liability coverage.
In addition, USAA offers home-sharing coverage. This will cover you as a host whether you are renting out just a room or an entire house.
Additional coverage options from USAA include:
- Tenant screening: USAA members will receive a 25% discount on TransUnion’s SmartMove tenant screening service.
- Umbrella insurance: Option for additional liability protection for your rental property
- Bundling: USAA members can save 10% on rental property insurance when they their primary property with USAA.
USAA Rental Property Insurance covers your property in the event of a fire, vandalism, or weather-related events; however, it does not cover a tenant’s personal possessions or flood damage.
You can cover up to ten units under USAA’s insurance policy however the units do need to be occupied to be eligible for coverage.
State Farm: Rental Insurance for Three Different Property Types
State Farm has three different rental property insurance policies to cover you based on the type of property you rent. This customized policy approach allows you to get the coverage that is right for you and your property.
State Farm Coverage for Rental Homes
A rental dwelling policy is perfect for a second home that you rent out. This policy includes:
- Dwelling coverage
- Personal property coverage
- Loss of rents coverage
- Liability coverage
Not covered under this policy includes:
- Damage caused by continuous or repeated seepage or leakage of water.
- Water damage caused by flood.
- Earth movement like an earthquake or landslide.
- Damage caused by settling, deterioration, contamination, or nuclear hazard.
- Damage caused by birds, rodents, insects, or domestic animals.
State Farm Coverage for Condo Units
For those renting out a condo unit, State Farm offers a rental condo unit owners policy. This policy is designed to protect your property, furnishings, liability and cover lost rental income.
Covered under the rental condo unit policy is:
- Building property coverage (wall finishes, floor coverings, fixtures, alterations, and appliances)
- Personal property coverage
- Loss of rents coverage
- Liability coverage
The rental condo unit policy does not cover:
- Water damage
- Earth movement like an earthquake or landslide.
- Damage caused by settling, deterioration, contamination, or nuclear hazard.
- Damage caused by birds, rodents, insects, or domestic animals.
State Farm Coverage for Apartment Units
Protection for apartment owners falls under State Farm’s landlord insurance coverage. This policy provides coverage for property, liability, loss of income, and s customizable to fit your coverage needs.
Some coverage options under State Farm’s landlord policy include:
- Building Property: This covers the building and structures at the premises likes garages, storage buildings, swimming pools, fences, and other structures. Building coverage also includes owned personal property used to maintain or service the building and premises.
- Comprehensive General Liability: Protects the owner against legal liability caused by bodily injury, property damage, personal injury, and advertising injury to others.
- Loss of Income: Covers the actual loss of business income caused by a suspension of operations due to a covered accidental direct physical loss to the insured property.
- Equipment Breakdown: Coverage for damage to property caused by mechanical breakdown of covered equipment, artificially generated current damaging covered equipment, explosion of steam boilers or loss of steam/hot water boilers.
- Tenant Move-Back Expenses: This covers expenses that you incur to move your tenants back to the property from a temporary location if your tenants must temporarily vacate.
- Heating or Air Conditioning Loss Reimbursement: Provides reimbursement for payments made to a tenant because of the complete loss of heating or air conditioning to a tenant’s leased unit due to mechanical breakdown or electrical failure of the heating or air conditioning system.
State Farm’s three rental insurance policies based on the type of property you rent allows you to choose the best option and level of coverage for your needs.
Allstate: HostAdvantage Home-Sharing Insurance for Short Term Rentals
Allstate was the first major insurance company to offer home-sharing insurance. This offers additional protection to hosts for personal belongings in a rental property.
HostAdvantage covers theft if a guest steals any personal belongings while renting your home. Allstate even has a Digital Locker Tool on their mobile app which allows you to keep a record of all your belongings.
This short-term rental policy covers up to $10,000 per rental host period for coverage for damages caused by guests.
In addition to insurance, Allstate has partnered with Merry Maids to offer customers a discount with Merry Maids cleaning services for your rental.
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Liberty Mutual: Customized Landlord Insurance for Rental Properties
Liberty Mutual, like many of the other major insurance companies, offers landlord insurance for your rental property. Although Liberty Mutual has the option to customize your insurance so you only pay for what you need, this policy doesn’t seem like it would work for short-term rentals like an Airbnb.
Under the Liberty Mutual landlord policy, you have the following coverage options:
- Dwelling coverage
- Premises liability coverage
- Wind and hail coverage
- Fair rental value coverage
- Inflation protection coverage
Even if you have a comprehensive landlord insurance policy, Liberty Mutual also recommends encouraging your tenants to purchase a renters insurance policy for additional coverage for damages and personal property in your rental unit.
American Family Insurance: Temporary Short Term Rental Insurance
American Family Insurance offers a unique insurance policy for those who only rent out their property a couple times of years. This is ideal for snowbirds who spend colder months in the south and have a vacant house in the north, or for those who just like to rent their property when they are away on vacation.
This short-term rental coverage is limited to 62 days per calendar year. This policy is added to your current homeowner’s insurance, not a replacement for the homeowner’s policy.
Protections under this policy include property damage caused by a tenant and theft and burglary. Normal wear and tear to your rental will not be covered.
American Family Insurance offers their customers an array of possible discounts including:
- Bundling discounts
- Loyalty discounts
- Generational discount if either of your parents is a customer
- Discounts for safety features
- Discounts for smart home devices
Temporary short-term rental insurance through American Family Insurance is perfect for those who want a cost-effective way to insure their home while renting it out.
American Modern Insurance: A Customizable Airbnb Rental Insurance Policy
American Modern Insurance provides short-term rental insurance and occasional rental policies. This insurance policy is perfect for Airbnb hosts because American Modern allows you to modify the policy to cover rentals shorter than three months. As a host, you can cover infrequent rentals with no defined term.
American Modern will customize your insurance policy based on the home type and occupancy type, so you are sure to be able to find a policy that fits your needs. Unlike other insurers, American Modern will cover manufactured homes.
American Modern provides coverage for the four main types of occupancy including owner-occupied homes, vacation and seasonal homes, vacant homes, and rental properties.
Pros of American Modern Insurance
- You can purchase property rental insurance without having a primary residence policy through them.
- Covers older homes.
- Bundling discounts
- Great customer service
- Zero consumer complaints in 2017 and 2018
Cons of American Modern Insurance
- Coverage for furnishings and additional structures will cost extra.
- No online quotes.
Some of American Modern’s policies are only available in certain states so you will need to call and speak to an agent to see if you can find a policy to fit your needs in your location.
Zibo Insurance: Short Term Rental Insurance Plus Financial Services for Landlords
Zibo provides hosts with short-term property policies but also provides landlords with a variety of other valuable services.
Zibo covers many types of rental properties including:
- Single family homes
- Condos
- Multi-unit properties (up to four units)
- Manufactured homes
- Mobile homes
- Apartment units
- Commercial properties and land
The standard policies offered by Zibo include property and liability protection and you have the option to add additional coverages based on your needs.
Property protection includes damage from fire, lightning, explosion, or vandalism. Liability protection will cover expenses related to legal fees, medical bill, or settlements in the event a renter is injured on your property. Additional coverages that may be added include:
- Additional structures
- Loss of rent
- Wind and hail
- Personal property
- Vehicles
- Aircraft
- Smoke
- Water backup,
- Extended replacement costs
In addition to insurance coverage, Zibo is a great resource for rental hosts. Zibo offers banking, rent collection, and loans for hosts. They also have a marketplace that allows landlords to connect with companies that offer property management, tenant screening, and additional insurance needs.
Final Thoughts
There are so many options available for insurance coverage for a short-term Airbnb rental. As a host, it is important to do your research and know exactly what kind of policy you need based on the type of property you own and the duration of your rentals.
If you are hosting consistent long-term renters, you will need a landlord policy. If you are running your rental as an Airbnb, you will need a short-term policy that protects your property, guests, and your business as a rental host.
To find out our picks for the top five insurance providers for Airbnb hosts, read our article, HERE.
