Navigating Insurance for Your Short-Term Rental
🡐 Back to Resources | August, 2025 | Written by Nick Sheveland
Running a short-term rental can be highly profitable, but it comes with risks. From guest injuries to property damage and liability claims, traditional homeowners or landlord policies usually don’t provide the coverage you need. That’s why having the right short-term rental insurance is critical for protecting both your property and your income.
This guide breaks down what coverage is essential, the common gaps in standard policies, and how to find a plan tailored to Airbnb and vacation rental owners.
Why Standard Homeowner Policies Don’t Cover STRs
Most homeowner or landlord insurance policies are not designed for frequent guest turnover. Insurers often exclude claims related to commercial activity, which means a single incident could leave you paying out of pocket.
Key risks uncovered by standard policies:
Guest-caused damage
Liability from injuries during a stay
Lost income from cancellations or property downtime
To learn more about protecting value, see our preventative maintenance plan guide.
Types of Short-Term Rental Insurance Coverage
1) Property Damage
Protects against accidents caused by guests (broken furniture, stained carpets, water damage). Unlike Airbnb’s Host Guarantee, specialized STR insurance ensures faster, more comprehensive payouts.
2) Liability Protection
Essential for covering injuries or accidents that happen on your property — from slips and falls to pool accidents. Liability coverage prevents personal financial exposure.
Want to strengthen your guest experience too? Read our guide on Airbnb essentials.
3) Loss of Income
If your property becomes uninhabitable due to damage (fire, flood, major repairs), loss of income coverage reimburses you for missed bookings. This is a safeguard for hosts relying on STR revenue.
Looking to improve profitability overall? See our guide on reducing costs and increasing profits in STRs.
4) Specialized Add-Ons
Some STR insurance providers offer add-ons that match your property’s unique needs:
Pet damage coverage – valuable if you allow pets. See our article on the pros and cons of pets in short-term rentals.
Amenity coverage – pools, hot tubs, and gyms often need extra protection.
Regulation compliance coverage – helpful if your market has strict local requirements.
Choosing the Right Insurance Provider
When comparing STR insurance, consider:
Coverage scope: Ensure it includes property, liability, and income loss.
Ease of claims: Look for providers with STR-specific claims processes.
Pricing: Balance premiums with deductible options and included add-ons.
Market reputation: STR-focused insurers often outperform generic carriers.
Need help with provider selection? Our guide on best STR software tools explains how tech can streamline everything, including insurance tracking.
The Cost of Skipping STR Insurance
Hosts who rely solely on Airbnb’s Host Guarantee or standard homeowner’s insurance put themselves at major financial risk. One accident could wipe out months (or years) of profit. Common consequences include:
Paying out of pocket for guest-caused damage
Legal liability for guest injuries
Revenue loss from canceled bookings
In a competitive market, proper insurance isn’t optional — it’s essential.
The Clear Stay Advantage
At Clear Stay Properties, we guide owners through the complex world of STR insurance. We:
Recommend policies based on your property type and location
Help ensure compliance with local laws and HOA requirements
Provide vendor coordination for claims or emergencies
Combine insurance planning with property management support to keep your rental protected and profitable
When you work with Clear Stay, you get more than coverage — you get peace of mind.
Why Partner with Clear Stay Properties?
Insurance may not be the most exciting part of running a short-term rental, but it is one of the most important. The right policy protects your income, shields you from liability, and ensures your property is guest-ready no matter what happens.
Managing a short-term rental doesn’t have to feel overwhelming. Fill out the form below to book your free consultation with Clear Stay Properties — we’ll handle the hard stuff so you can focus on what matters.