Renting out your home, or even just a room, through platforms like Airbnb has become a popular way for homeowners to earn extra income. While it offers numerous benefits, there are essential considerations and risks associated with short-term rentals. In this guide, we delve into the crucial aspects you need to know before listing your property.

Short-Term Rental Insurance: An Overview

What is short-term rental insurance?

Short-term rental insurance, also known as home-sharing insurance or Airbnb insurance, is a specialized coverage designed to protect property owners and hosts who rent out their homes on platforms such as Airbnb and Vrbo. Once your property is listed, it transforms into a business, necessitating careful management, including insurance coverage.

What does short-term rental insurance cover?

Similar to landlord insurance, short-term rental insurance provides comprehensive coverage for your property during short-term rentals. It includes liability protection and coverage for property damage, theft, loss of income, legal liability, excessive water or hydro usage, and even lock and key replacement. Understanding the coverage is crucial for ensuring your property and belongings are adequately protected.

Home-Sharing Platforms and Insurance

Do home-sharing platforms have insurance?

While platforms like Airbnb offer insurance for hosts (AirCover), relying solely on this coverage might leave significant gaps in protection. Airbnb’s coverage has limitations, and hosts should consider supplementing it with additional short-term rental insurance to ensure comprehensive protection for their property.

Updating Your Home Insurance Provider

Informing your home insurance provider

Homeowners planning to rent their homes on a short-term basis must inform their current home insurance provider of their intentions. Standard home insurance coverage does not apply to home-sharing situations. Failure to inform the insurance provider can lead to policy cancellation. Homeowners should update their policy or explore additional endorsements or riders to extend coverage for their income property.

Protecting your profit property

Ensuring adequate coverage is essential to protect yourself, your guests, and your income property. Short-term rental coverage complements platform-specific insurance, addressing potential gaps and providing peace of mind while your property generates income.


Renting out your home can be a lucrative venture, but understanding the insurance landscape is crucial for a seamless and protected experience. By being informed about short-term rental insurance and keeping your home insurance provider in the loop, you can safeguard your property and enjoy the benefits of home-sharing.

Author: Pritish Kumar Halder

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