What insurance do I ACTUALLY need for a short-term rental?

Category: Getting Started

By: Heather Barnes

Posted: 2025-12-25T21:12:03.896Z

This topic is confusing. I've got regular homeowner's insurance on my property but I keep reading that it won't cover Airbnb guests. Then there's Airbnb's AirCover, plus third-party STR insurance options. Can someone break down what's actually needed? I have a single 2BR condo in San Diego that I list on Airbnb and VRBO. Specifically: - Does AirCover actually cover anything useful? - Do I need separate STR insurance? - What about liability if a guest gets hurt? - Any providers you recommend?

Reply by Michael Thompson:

Let me break this down clearly because it confused me too initially: **Your homeowner's insurance** — Probably does NOT cover STR activity. Most explicitly exclude "commercial use" or "short-term tenants." Call your provider and ask directly. If they say no, you need separate coverage. **AirCover for Hosts** — It's decent for the basics: $3M damage protection, $1M liability. BUT the claims process is slow, they fight you on payouts, and it only covers Airbnb bookings (not VRBO). **What I recommend:** Get a dedicated STR insurance policy. I use Safely (https://safely.com) — $500-800/year depending on property value. Coverage includes guest injury liability, property damage beyond AirCover, and loss of income if your property is uninhabitable after damage. Steadily (https://steadily.com) is another solid option especially if you also want landlord insurance bundled in.

Reply by Anika Sharma:

One thing nobody mentions: **umbrella insurance.** For ~$200/year you can get an extra $1M liability on top of everything else. It's the cheapest peace of mind in the business. Also, document EVERYTHING before each guest checks in. Take timestamped photos. If you ever need to file a claim (with Airbnb or insurance), having before/after photos is the difference between getting paid and getting denied.

Reply by Olivia Laurent:

I'll add one provider to the list: **Proper Insurance.** They're specifically designed for short-term rentals and their policies cover things like bed bug treatment, lost rental income, and theft by guests. More expensive than Safely (~$1,200/year) but more comprehensive. For monitoring and screening guests to prevent issues in the first place, I use Alertify (https://alertify.io) for guest screening. Catches red flags before they become insurance claims.

Reply by David Okafor:

Just want to flag — if you're renting (not owning), your landlord's insurance covers the building but NOT your contents or liability for YOUR guests. You need renter's insurance PLUS a commercial activity rider or a standalone STR policy. This catches a lot of arbitrage hosts off guard.