If you are regularly renting out a vacation home or investment property, this would also require a landlord or rental dwelling policy. ... The policy also includes liability coverage; if a tenant or one of their guests gets hurt on the property, it would cover legal fees and medical expenses.
Having Short-Term Rental Insurance makes all the difference. When someone short-term rents a property on Airbnb or VRBO they are a guest and the owner needs short-term rental insurance coverage. Without adequate short-term rental insurance, you're exposing yourself financially to liability and property damage issues.
Airbnb also provides a free “host guarantee” that covers damage to the host's home or property caused by a guest, up to $1 million, subject to numerous terms and conditions. But this is not insurance, and Airbnb states that it “should not be considered a replacement or stand-in for homeowners or renters insurance.”
VRBO will continue to look at options to further protect owners against the unexpected challenges involved with managing a vacation rental. Please note, $1M Liability Insurance does not cover damage caused by a traveler to your own property.
Millions of people take vacations each year without experiencing problems, but sometimes things don't turn out as expected for guests or hosts.In the eyes of insurance, vacation rentals are considered businesses - therefore, you wouldn't be adequately covered by either your homeowners' insurance or personal umbrella policies.
Replace your homeowner's or landlord policy with Proper Insurance® One policy that covers both commercial and personal use of the short-term rental Comprehensive coverage for building(s), contents, income, and liability The Proper Insurance® policy replaces a homeowner's (HO) or landlord (DP) policy.