Vacation Rental Insurance For Owners + Airbnb Host Insurance: The Breakdown

Summary:  Vacation Rental Insurance For Owners + Airbnb Host Insurance

  1. Vacation Rental Insurance:  The Skinny
  2. The Biggest Killers of Wealth:  Taxes + Lawsuits
  3. The Good News:  There is “custom penned” Vacation Rental Insurance for Owners
  4. Proper Insurance Reviews:  The Vacation Rental Insurance company we use
  5. Airbnb Host Insurance
  6. HomeAway Insurance
  7. Should you get Vacation Rental Insurance?

Rad News for our blog readers!

  1. Vacation Rental Confidential – Just released!  “Information so valuable it should be kept a secret.” Written by Michael Hamilton, VR Confidential showcase’s the Live Swell proven process and will serve as blueprint to increase the likelihood of Vacation Rental success to truly build your dream. Get your copy here
  2. Get MORE Bookings video Series! – Is your listing’s marketing effective? Click here to learn from Mike and Maria, get tips to rank higher on searches and find out how to turn your lookers into bookers. It may be the click that changes your bank account forever!
  3. It’s not about your resources, it’s about your resourcefulness”- Tony Robbins  Save YOUR time.  Now our readers have access to the SAME resources and tools we use in our business everyday (and have helped build a brand of top ranked and top performing Airbnb properties) Your resources are waiting…

Vacation Rental Insurance:  The Skinny

It’s important to recognize most insurance policies, like a homeowners policy, will likely NOT cover certain investments, vacation rentals or dwelling types.  Each property insurance policy is  written with a specific set of terms that must be adhered to for a payout to be valid if an insurance claim is filed.  For example, Homeowners insurance policies are written for the “homeowner” as the occupant, NOT renters and especially NOT short term renters, which come with some unique risks.  This is a “term” of the policy.

It is however, very common for a short term rental owner to have a homeowners policy, which is simply not designed as short term vacation rental insurance.  In this case, if a claim was filed, by a tenant, neighbor or other 3rd party and the homeowner is named in a lawsuit, unfortunately, the policy will likely have whats called, “coverage lapses.”  Whats a “Coverage Lapse?” You guessed it!  It means the your policy does not cover the LOSS!  Yikes.

More specifically, these traditional policies, like homeowners and renters, exclude what is called “commercial activity.”  Whats “commercial activity?” Renting a property short term on Airbnb, VRBO, HomeAway and others.  Again, any property or liability claim could be denied as the result of short-term renting your property as homeowners and renter dwelling policies exclude “commercial activity.”  And that is just ONE example of coverage lapses, there are sooo many!!!

Biggest Wealth Killers:  Taxes and Lawsuits

It is said that the biggest killers of wealth are taxes and lawsuits.  One of the consequences of NOT having the correct vacation rental insurance policy in place is a Lawsuit.  For this reason, we are big believers in vacation rental insurance.

Vacation Rental Insurance: Short Story

“Imagine for a moment, you are at home sleeping and the phone rings at 11pm at night. Half asleep and startled you answer, it is your Property Manager. Hastily she says to you, “We have a problem, one of the teenage kids of the current guest was on the roof, drinking alcohol, partying with friends and fell off the roof. We have everything under control here, we don’t know how severe the fall was but the parents are on the phone with an attorney right now. What do you do next?”

This is one of the worst fears and nightmares of anyone that owns real estate, accidents! Accidents will happen, are we prepared for them?  When a home is titled in the personal name of the owners, not only are they at risk most if not all of their personal assets can be too, including any college funds, legacy reserved for children, savings, equities and possibly primary residence. We believe in asset and wealth preservation. We do not “own” anything but control all of our assets via a combination of revocable living trusts and limited liability companies. There is no one “right” way to structure assets, some simply have more layers or protection and take advantage of incorporating in states, like Nevada, that have more protection for business owners.”

Excerpt From: Michael Hamilton. “Vacation Rental Confidential.” Apple Books.

How do I protect my Assets? Vacation Rental Asset Protection

The Good News:  There is Vacation Rental Insurance for Owners + Airbnb Host Insurance

As short term rentals are becoming more popular many insurance companies are custom designing policy’s specific to the risks of these type of rental properties which can be a hybrid of homeowners, landlord and a business policy. Additionally, a policy can now have coverage for common vacation rental amenities like, bicycles, watercraft, surfboards and things like these. I know it provides us with peace of mind.

Proper Insurance Reviews


Airbnb Host Insurance

Whats Not Covered in the Airbnb Host Insurance Program?


VRBO + HomeAway Insurance


Should I get Vacation Rental Insurance?

The answer depends.  We will never tell anyone what to do, we only showcase what we do and some of the reasoning behind why we do it so it can make sense.  A comprehensive vacation rental insurance policy will be more expensive than traditional policies, so you need to be prepared to pay a bit more.

If you are the kind of vacation rental owner that desires peace of mind and a higher likelihood of success than I would say “Absolutely, Yes” get a vacation rental insurance policy as soon as you can.

Vacation Rental Resources Airbnb Resources


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