If you’re planning to invest in a short-term rental property for 2025, you’ll also want to invest in the right rental insurance. In most cases, typical homeowner insurance will not cover the vast majority of issues that arise in short-term rentals. Since short-term rentals can be unoccupied for long periods of time and guests could cause property damage, insurance companies consider them to be very high risk.
You’ll need to take into account various factors, such as the average length of stay, the rental’s age and condition, and the facilities and amenities you provide to find the best insurance for short-term rentals.
Don’t see the form to download the Vacation Rental House Rules Template? Click here.
Why should I get insurance for my vacation rental?
It’s important to protect your home, its valuables, and your vacation rental business. Landlord insurance policies are designed to cover tenant-occupied properties where standard owner-occupied insurance lacks. For example, homeowners of a vacation property will require a policy covering guest stays, owner vacations, and unoccupancy.
Unfortunately, large booking platforms (such as Airbnb, Vrbo, and Booking.com) often have issues with unwanted parties and damages, leaving hosts wary of renting out their vacation homes to large groups. Imagine the feeling of finding out your home and livelihood have been affected by theft or vandalism.
To make the most of your short-term rental business, you’ll want to ensure that you’re not liable for the cost of repair or replacement.
As there is no one-size-fits-all policy, we compare three of the best short-term rental insurance companies to help you decide which one best suits your business needs.
The best short-term rental insurance
Safely
Safely is a U.S.-based provider of short-term rental insurance specializing in on-site incidents, property valuables, structural property damage, and personal injury, whether it’s to the homeowner, the property manager, or guests.
What does Safely offer?
$1 million in coverage
Hosts are protected by up to $1 million dollars for guest-caused structural property damage and liability, as well as up to $1 million in homeowner and property manager liability coverage for guest injury. All property managers have to do is simply add the guest-paid insurance fee to their listing. Moreover, Safely’s short-term rental insurance policy covers up to $25 thousand for property contents and belongings.
Intelligent guest screening
Using innovative technology, hosts have access to a rigorous guest-screening system that identifies problem guests before they even book their stay. Safely only requires the name, date of birth, and address to perform background checks on guests. It scans various databases, such as criminal records, credit history, and even a list of previous problem guests. Should any red flag be raised, you can cancel their booking without any legal or financial repercussions.
Quick and simple claims
On the rare occasion that you need to make a claim, you have 60 days to gather all the necessary information and evidence. Furthermore, it only takes five minutes to submit a claim, and you can expect to be paid within 24 hours for damages less than $1,000. 98% of all claims made through Safely are paid within four to five days.
Countries
Safely only covers properties located in the U.S. or in U.S. territories.* However, the homeowner does not need to be a U.S. citizen or reside in the U.S.
*Not available in all states. Visit the Safely site for more information.
Pricing
There isn’t a standard starting price with Safely. Instead, hosts receive a customized quote based on the number of days they want to be insured for, the number of properties, their estimated occupancy, and the deductible.
Truvi
Truvi (previously SUPERHOG) is an all-in-one risk management platform providing intelligent guest screening and damage protection for short-term rentals that can be implemented across all booking channels. They specialize in mitigating the risks associated with short-term rental bookings, providing innovative biometric technology, performing comprehensive database checks, and facilitating damage waivers and damage deposits for property managers and hosts. Hosts will know their guest is who they say they are.
What does Truvi offer?
Damage protection
Truvi provides $5 million in guest-related damage protection for every Truvi-verified booking.
Damage waivers and deposits
One of their standout features is choosing whether you’d like to implement a damage waiver or deposit, allowing you to take control of small incidents of guest damages quickly and efficiently.
Intelligent guest screening
Truvi’s comprehensive technology allows you to screen guests before they enter your property, preventing parties, criminal damage, fraudulent bookings, and credit card fraud.
Countries
Truvi is available around the world with just a few restrictions. For more information, you can check out their Host Guarantee.
Pricing
Truvi’s pricing depends on the services you need and your number of listings. Contact them for more information.
InsuraGuest
Covering guest injuries, property damage, and theft, InsuraGuest provides you and your guests with all the coverage you need to protect yourself and your property. Hosts can insure their vacation rentals by choosing the plan they want and then deciding to either pay the premium themselves or share the cost with their guests.
What does InsuraGuest offer?
$25,000 in coverage
One of the cheapest short-term rental insurance companies around, InsuraGuest offers exceptional coverage. Hosts are covered up to $25,000 in property damage coverage and the same amount against accidental medical incidents on your property for your guests.
$2,500 theft coverage
InsuraGuest also provides up to $2,500 in theft coverage in case items go missing during a guest’s stay.
Guaranteed coverage
Moreover, InsuraGuest has a predefined list of typical household items displaying the exact amount you are covered for if you have to repair or replace an item. What makes this even more appealing is that hosts can choose to share the insurance cost with their guests by adding an insurance fee to their bookings.
No commitment
Unlike other vacation rental insurance companies, hosts don’t have to commit to a certain period of time. Instead, they can simply turn their coverage on and off whenever they want and only pay when it’s in use. Payouts are made within 72 hours if a claim needs to be filed.
Countries
InsuraGuest is only available for properties located in the U.S. However, the homeowner can reside in any country.
Pricing
Monthly subscriptions start at $69, with the most expensive costing $99. There is also an option for hosts to share the cost with the guest, meaning your coverage is paid for by whoever makes the booking.
Doesn’t my AirCover provide adequate protection?
Airbnb hosts have access to guest identity verification, reservation screening, up to $3 million in host damage protection, and up to $1 million in host liability insurance through AirCover, which is added to every booking free of charge. So, do you still need personal insurance?
The answer is yes. Even Airbnb says that AirCover is not a substitute for personal insurance. There are also several key exceptions and exclusions that Airbnb hosts should be aware of.
What about Vrbo’s $1M liability insurance?
All Vrbo hosts and property managers are entitled to free liability protection of up to $1 million, provided that the booking was processed through Vrbo. This insurance protects hosts from accidents involving third-party bodily injury or third-party property damage. For example, if a guest were to injure themselves while staying at your property, you would be protected from their medical costs if they tried to sue you.
This policy, however, fails to protect hosts from damaged or stolen items on, and including, their property. Instead, Vrbo recommends combining your coverage with an additional vacation rental insurance policy to enhance your protection.
What is the best insurance for short-term rentals?
As the vacation rental industry continues to grow, more and more insurance packages are becoming available for short-term rental owners. Unfortunately, there’s no package that suits every vacation rental business. Therefore, when deciding which is the best short-term rental insurance, it really depends on your needs as a host.
Consider how many properties you own, how many nights you rent them out for, which country your vacation rental is in, and what exactly you want to be protected against. The three mentioned in this article are some of the best short-term rental insurers, offering exceptional coverage at affordable rates while specializing in different areas of vacation rental security.
Additionally, both Safely and Truvi integrate with Lodgify, meaning if you’re a Lodgify customer, you can seamlessly add either package to your account. You can try our vacation rental software completely free of charge with our seven-day trial.
Don’t see the form to download the Vacation Rental House Rules Template? Click here.
Insurance services are provided through Lodgify Insurance Services Inc. (CA License #6014335) (“LIS”) an insurance agency affiliate of Codebay Solutions Ltd. with its principal place of business in 1700 W Irving Park Road Suite 209A, Chicago, IL 60613. LIS acts in partnership with On Demand Insurance Agency, LLC (dba Safely), an unaffiliated insurance agency which offers insurance business on behalf Obsidian Specialty Insurance Company (NAIC# 16871). LIS is licensed as a property casualty insurance agency in all jurisdictions in which it offers insurance products (see further license information here). Not all insurance coverages or products are available in all jurisdictions. All insurance products are governed by the terms, conditions, limitations, and exclusions in the applicable insurance policy. Coverage is subject to actual policy language. LIS may be paid a commission, fee or other compensation for its services.
