Whether you rent out your home occasionally or run a full-time Airbnb business, you need to protect your property and yourself from a wide range of risks associated with hosting. However, with hundreds of options in the US market, it’s hard to choose the best short term rental insurance company, especially for beginner real estate investors.
We researched and reviewed dozens of leading insurance providers to rank the 7 top choices for hosts with different property types and various needs.
The best short term rental insurance companies are:
- Steadily: Best Overall Short Term Rental Insurance Provider
- CBIZ: Best for Vacation Rentals
- Obie: Best for Affordable Premiums
- Safely: Best for Airbnb Guest Screening
- Allstate: Best for Home-Sharing
- Farmers Insurance: Best for Vacation and Second Homes
- American Family: Best for Temporary Short Term Rentals
Why Do Real Estate Investors Need Insurance for Their Short Term Rentals?
The best short term rental insurance helps in risk management for your Airbnb business
Investing in vacation rentals can be a very profitable endeavor, but it comes with its own unique risks and challenges. Compared to traditional, long term rentals, Airbnb properties are associated with a higher frequency of property damage and bodily injury due to the less careful renters and the higher turnover rate. Not to mention that some of the top locations for buying an Airbnb are located in areas with common natural disasters like the State of Florida.
Thus, getting the best short term rental insurance policy is a must in the process of launching an Airbnb business. This is a special type of landlord insurance which focuses on the specific needs of investment properties listed on Airbnb, Vrbo, and similar platforms as well as their owners.
This insurance protects both against property damage and loss and against personal liability resulting from guest injuries or guest property damage. Moreover, the best policies offer compensation for lost rental income so that investors can continue to cover operating expenses and generate positive cash flow even if their property becomes temporarily unavailable.
What Factors Did We Use to Choose the Best Insurance Companies for Vacation Rentals?
When figuring out how to start an Airbnb, selecting a good insurance policy is an important step in the process. To recommend a list of the 7 best short term rental insurance companies in the US market, we focused on the following criteria:
- Standard and additional coverage: We chose providers that offer comprehensive coverage within their standard policy as well as options to customize policies based on location, needs, and preferences.
- Property types coverage: We selected companies that insure different types of properties and preferably work with both long term and short term rentals (in case investors decide to switch their strategy).
- Market coverage: We gave preference to companies covering the entire US market.
- Cost and discounts: We paid attention to the cost of insurance and available savings opportunities to ensure affordable rates.
- Ease of filing claims: We checked how easy or not it is to file a claim should a covered event occur.
- Customer reviews: We looked at what existing customers say about their experiences with each company.
7 Top Short Term Rental Insurance Companies for Real Estate Investors
Following the criteria listed above, we ranked the 7 best short term rental insurances in the US market:
Steadily: Best Overall Short Term Rental Insurance Provider
Steadily is the best short term rental insurance company in the US market. In its short history (being founded in 2020), Steadily has already solidified its position as a leader in the industry.
Policy and Coverage
The Steadily landlord insurance policy works for both long term and short term rentals, whether listed on Airbnb or Vrbo. Moreover, it covers various property types including single family homes, condo units, apartment buildings, multifamily homes, and others. It protects investment properties both when they are rented out and when they are vacant. Importantly, the company works in all 50 states.
The Steadily policy provides truly comprehensive coverage including:
- Property damage and loss
- Bodily injury
- Fire
- Water
- Windstorm
- Hail
- Lightning
- Riot
- Civil commotion
- Theft
- Vandalism
- Lawsuits
- Medical expenses
- Explosion
- Volcanic eruption
- Damage caused by vehicles
- Loss of rental income
Most of the items covered above are available in the standard policy for Airbnb hosts, while the rest are available as add-ons to meet the specific needs of all investors, regardless of their market and property.
Unique Features
The most important benefit of the Steadily vacation rental property insurance is the optimal balance between coverage and cost. While the provider covers all imaginable events that might happen to an Airbnb property, the rates are affordable. Steadily is able to achieve this because it was established with the needs of real estate investors – rather than homeowners – in mind.
Additionally, Steadily is a national company with local insurance agents and local strategies. Policies are customizable to each market to address the risk factors there. For example, Florida Airbnb investors need extra protection against fires and hurricanes due to the severe weather in the state.
Cost and Deductibles
The average cost of Steadily Airbnb insurance is between $2,000 and $3,000, depending on location, property type and size, property condition, and other factors. In some of the best short term rental markets, like Florida and California, the annual premium can reach as much as $9,000 though.
One certain way to reduce the cost is to raise your deductibles. The more you are willing to pay out of pocket should something happen to your property, the lower your annual fees will be.
Customer Reviews and Ratings
Airbnb hosts working with Steadily are extremely satisfied with the provided coverage and services, as demonstrated by the excellent reviews on reputable review websites.
How to Get a Quote
To get started with Steadily, short term rental investors need to contact an agent to get a personalized quote. You can do that using the link below.
CBIZ: Best for Vacation Rentals
CBIZ Vacation Rental Insurance is another top option among the best short term rental insurance companies in the US. It was launched in 2002 to offer specific coverage for Airbnb properties, and it has grown to be the biggest short term rental property insurance company nationwide.
Policy and Coverage
CBIZ insures short term rentals, long term rentals, second homes, and vacant properties. They work with single family homes, condos, apartments, townhouses, multifamily rentals, and other property types. CBIZ policies are accessible across the entire US housing market.
The CBIZ Vacation Rental Insurance covers:
- Property damage
- Additional structures
- Amenities like swimming pools and hot tubs
- Guest damage
- Natural disasters
- Sewer backup
- Medical fees (up to $5,000)
- Legal costs
- Bed bug removal and cleanup
- Loss of Airbnb income
Unique Features
The main advantage of the CBIZ insurance is that it covers a wide range of items and situations, including the property, general liability, and lost business income. However, on the flip side, coverage is rather limited in some cases. For instance, medical fees are limited to $5,000 only.
Cost and Deductibles
CBIZ does not provide an estimate of their best short term rental insurance policy as the cost depends on multiple factors. In any case, agreeing to higher deductibles lowers the monthly or annual premiums.
Customer Reviews and Ratings
At the moment, there are very few online reviews of CBIZ which are not enough to conclude how well the company addresses the needs of vacation rental property owners.
How to Get a Quote
To get started with CBIZ Vacation Rental Insurance, investors need to submit an online form to get a quote, by clicking here.
Obie: Best for Affordable Premiums
Obie was created in 2017 to protect rental properties across the US market. Our review shows that this is one of the best choices for affordable options within the industry.
Policy and Coverage
Obie insurance for rental property investors works for both long term and short term rentals. It covers various kinds of properties, such as single family homes, multifamily properties, condos, and apartment buildings. They also work with investors who specialize in flipping houses. Policies are underwritten in all US states.
As one of the best short term rental insurance providers, Obie covers:
- Property damage and loss
- Additional structures
- Personal property
- General host liability
- Lost rental income
- Fire
- Natural disasters
- Theft
Not all these items are included in the standard policy, so interested investors might need to get some of them additionally.
Unique Features
Obie aims to position itself as the most affordable vacation rental insurance company nationally. However, the lower cost might come at the expense of more limited coverage in some cases, so it’s important for investors to conduct diligent short term rental insurance comparison before opting for a cheaper rate.
Cost and Deductibles
The annual cost of Obie Airbnb insurance generally ranges between $1,000 and $4,000, but higher and lower premiums are also possible. The exact price is determined by a multitude of factors and considerations, including but not limited to the amount of deductibles.
Customer Reviews and Ratings
While Obie customer reviews are overwhelmingly positive, they are too few to draw any definite conclusions.
How to Get a Quote
In order to get started with Obie, interested investors need to click here to fill in an online form to obtain a quote from the company.
Safely: Best for Airbnb Guest Screening
Safely is another leader among the best short term rental insurance providers that was established in 2012. What makes them stand out is the fact that they focus exclusively on vacation rental protection and offer some additional services in this regard.
Policy and Coverage
Safely provides Airbnb insurance for landlords as well as for professional property managers. The company works with different types of residential properties rented out on a short term basis, and its services are available in the entire US market.
Safely short term rental insurance policy includes:
- Property structural damage
- Content replacement or repair
- Bodily injury
- Pet damage
- Intentional acts
- Theft
Safely offers up to $1,000,000 in insurance for all vacation rental listing websites including Airbnb, Vrbo, and direct booking websites.
In addition, the company provides an automated, non-invasive guest screening process to minimize damage caused by reckless renters.
Unique Features
What makes Safely different from other providers is that it is dedicated to vacation rental home insurance. Moreover, they offer automated tenant screening, which is not something that insurance companies usually supply.
Cost and Deductibles
With Safely, Airbnb investors need to pay the short term rental insurance cost only for the days when their property is booked, which allows for major savings. Furthermore, the additional guest screening service is provided for free.
Customer Reviews and Ratings
There are no online reviews of Safely on third-party websites, so we cannot confirm whether the company actually provides Airbnb hosts and investors with positive experiences.
How to Get a Quote
In order to get started with Safely, short term rental property owners and managers need to fill an online form available here to get a quote.
Allstate: Best for Home-Sharing
Allstate is another top short term rental insurance company with a solid reputation in the US market since its establishment in 1931. The way the Allstate landlord insurance for short term rentals is designed makes it ideal for hosts who list their primary home for renting on platforms like Airbnb and Vrbo but could also potentially work for full-time rentals.
Policy and Coverage
The Allstate HostAdvantage home-sharing insurance adds additional protection on top of the homeowners insurance. It is applicable to a wide range of residential property types and is available in all 50 US states.
In terms of standard and optional coverage, Allstate can protect:
- Primary structure
- Additional structures
- Investor personal property
- Building codes
- Liability
- Loss of vacation rental income
- Theft
- Vandalism
- Accidental guest damage
- Medical expenses
- Flood
- Umbrella coverage
Unique Features
What makes Allstate stand out from the other best short term rental insurance providers is that their focus is geared towards part-time Airbnb hosts. Importantly, they have multiple add-ons which investors can choose from depending on their particular situation, like flood insurance and umbrella coverage.
Cost and Deductibles
The pricing of the Allstate real estate investor insurance starts at around $50 per year for very limited coverage. More comprehensive policies cost more. Meanwhile, the company offers savings when bundling multiple types of insurance under the same policy.
Customer Reviews and Ratings
There are thousands of online reviews of Allstate by existing customers that are generally low-rated.
How to Get a Quote
To get started with Allstate, property owners need to fill an online form available here to get a quote and decide if that’s the best option for their needs.
Farmers Insurance: Best for Vacation and Second Homes
Farmers Insurance is yet another good option for short term rental property owners. Having been around since 1927, this company has a solid presence and reputation. The company basically repackages the landlord insurance policy for vacation homes and second homes, which makes it the best provider for this category.
Policy and Coverage
Farmers Insurance is well-known for its comprehensive coverage when it comes to rental properties. They insure single family homes, small multifamily homes, and multi-unit complexes, in all US states.
The Farmers Insurance policy for short term rentals covers:
- Property damage
- Additional structures
- Personal property
- Liability
- Loss of rent
Unique Features
Farmers Insurance offers prepackaged landlord insurance policies which can be customized to meet the needs of short term rental properties too. There are many options to add coverage to match the exact expectations of a host.
Cost and Deductibles
Farmers Insurance vacation rental policy tends to cost between $1,000 and $3,000, depending on the market and the property. The company offers various opportunities for discounts, including some professions as well as bundling.
Customer Reviews and Ratings
There are numerous reviews of Farmers Insurance by existing customers that show both positive and negative experiences.
How to Get a Quote
In order to get started with Farmers Insurance, short term rental property investors need to find an insurance agent here to get a customized quote from them.
American Family: Best for Temporary Short Term Rentals
The American Family temporary and short term rental insurance coverage is available for properties rented out for up to 62 days per year. Meanwhile, the long history of the company (since 1927) and its strong reputation make it one of the best short term rental insurance providers in the US market.
Policy and Coverage
American Family offers add-on to its home insurance for primary residences that get rented out for a few weeks a year. The insurance works with different types of properties and is available in 17 states.
The American Family vacation rental insurance covers:
- Property damage
- Liability
- Vandalism
- Malicious mischief
- Tenant theft
- Home burglary
Unique Features
What makes American Family different from other providers of Airbnb insurance is that their policy acts as an add-on to standard homeowners insurance, which is convenient and cost-efficient for temporary hosts. However, it is not optimal for full-time investors in short term rentals.
Cost and Deductibles
The cost of the American Family insurance is between $2,000 and $3,000, and higher deductibles are associated with lower premiums. Hosts can get access to discounts with home safety features and when bundling a few policies.
Customer Reviews and Ratings
There are thousands of customer reviews and testimonials of American Family, revealing mixed experiences.
How to Get a Quote
To get started with American Family, hosts can find an agent here and contact them to get a quote.
Airbnb and Vrbo Insurance Policies: A Closer Look
AirCover for Hosts and Vrbo $1M Liability Insurance
The two major vacation rental websites – Airbnb and Vrbo – offer their own insurances that are specifically designed to protect the hosts who list on these platforms and their short term rentals.
Let’s take a look at what exactly is offered by each one:
AirCover for Hosts
A few years ago, Airbnb introduced AirCover for Hosts, which is a free insurance provided with each reservation made through the platform. The cost is covered by the Airbnb host fees.
AirCover for Hosts covers:
- $3,000,000 in property damage including guest damage, pet damage, art, valuables, auto, boat, loss of rental income, and deep cleaning
- $1,000,000 in liability insurance including guest injuries and guest belongings getting damaged or stolen
- Guest identity verification
- Reservation screening
- 24/7 safety line
While this is very good coverage, there are certain things required by short term rental properties and their owners that AirCover for Hosts does not cover, like:
- Reservations made outside the Airbnb platform
- Damages outside bookings
- Natural calamities
- Mold
- Wear and tear
Vrbo $1M Liability Insurance
The Vrbo vacation rental platform also has its own insurance: Vrbo $1M Liability Insurance. Similar to AirCover for Hosts, this Vrbo rental insurance is free of charge and is automatic, so it comes with every reservation.
Vrbo $1M Liability Insurance covers:
- Traveler injury claims against hosts
- Third-party property damage claims against host (for example, a neighbor’s property)
However, this insurance does not cover:
- Damage to the short term rental property
- Host personal property
- Lost vacation rental income
While both AirCover for Hosts and Vrbo $1M Liability Insurance offer important benefits to hosts and cost nothing, they are not the best short term rental insurance available out there. Their coverage is limited, which dictates the need for investors to obtain third-party coverage to protect both their investments and themselves from the many things that can go wrong when running an Airbnb business.
Understanding the Cost of the Best Short Term Rental Insurance
In most cases, short term rental insurance cost ranges between $1,000 and $3,000 per year in the US market. However, this is a very wide range, and sometimes the price is even less or more. The reason for this major difference is that there are multiple factors that affect the cost of Airbnb insurance.
The main factors determining price include:
- Market and local natural and social risks
- Proximity to policy stations and fire stations
- Property type and size
- Rental market value
- Property condition
- Availability of home security system and safety devices
- Monthly vs annual premiums
- Bundling with other types of insurance
- Deductibles
- Claims history
- Credit history
- Insurance company
In general, you should install a reliable security system, maintain your property well, choose reasonable deductible amounts, only file claims when needed, and talk to a few companies to reduce the cost of the best short term rental insurance.
Choosing the Best Insurance for Your Airbnb Property
With so many companies and agents in the US market, it can be challenging to choose the best short term rental insurance provider for your investment property. Meanwhile, it is an absolute must to have a reliable, comprehensive policy should an accident strike your property. When studying different options, make sure to check out Steadily, a leading rental property insurance company.
