The best short-term rental insurance in 2026: The policy your client should never close without

Our pick

Best overall STR insurance: Proper Insurance. Purpose-built for short-term rentals, it covers all booking channels under one policy, places no limit on guest-caused damage, and adds STR-specific protections most carriers won't touch. Expect roughly $1,500-$4,000/year depending on property size, location, and limits.

How we evaluated STR insurance

We graded providers on the coverage that matters when a claim actually lands.

1. STR-specific coverage. Does the policy explicitly cover short-term rental use, or is it a landlord policy with an STR rider bolted on? Commercial-grade STR coverage is the standard to hold.
2. Liability limits. Guest injuries are the catastrophic risk. We favored providers with $1M+ commercial liability.
3. Guest-caused damage. Theft, parties, and trashed units happen. We rated how each provider handles contents and damage.
4. Loss of income. If a covered event takes the unit offline, does the policy replace the lost bookings?
5. All-channel coverage. A single policy that covers Airbnb, Vrbo, and direct bookings beats juggling platform-specific guarantees.
6. Cost and availability. Price relative to coverage, and whether the provider writes in your client's state.

The providers

Proper Insurance is widely considered the gold standard for short-term rental coverage. Its policies are designed specifically for STRs and cover Airbnb, Vrbo, and direct bookings under a single policy. It places no limit on guest-caused damage, administers claims in-house, and offers industry-first coverages like bed bug and squatter protection. Cost typically runs $1,500-$4,000/year depending on location, size, and limits.

• Best for: Serious investors who want comprehensive, no-gaps STR coverage.
• Starting price: ~$1,500-$4,000/year.
• Pros: True STR-specific policy; covers all booking channels; no cap on guest damage; in-house claims; specialty coverages.
• Cons: Higher premium than a basic landlord policy; comprehensive coverage your client must actually understand to value.
• When to skip it: A part-time host renting a few weekends a year may be over-insured here.
• What to tell your client: "This is the policy that lets you sleep at night. It covers every way you take a booking and doesn't cap guest damage — that's the coverage your liability exposure actually requires."

Steadily covers vacation rentals and specializes in landlord coverage like loss of rent and dwelling protection. STR policies typically run $2,000-$3,000/year. It's a strong middle ground for investors who want solid dwelling and income protection without the top-tier premium.

• Best for: Buy-and-hold investors who prioritize dwelling and loss-of-rent coverage.
• Starting price: ~$2,000-$3,000/year.
• Pros: Strong landlord-style protections; loss of rent included; fast quotes; writes in most states.
• Cons: Less STR-specialized than Proper on guest-liability edge cases.
• When to skip it: A high-volume, high-liability property where Proper's STR-specific protections earn their premium.
• What to tell your client: "If your priority is protecting the asset and your rental income, Steadily covers that well at a lower premium than the top specialist."

Obie is a tech-forward broker specializing in landlord and rental policies, available in all 50 states, with pricing from around $40/month. It protects against fire, wind, and water damage and is built for speed — useful when your client needs proof of coverage to close.

• Best for: A single straightforward property where speed and cost matter.
• Starting price: From ~$40/month.
• Pros: Fast online quotes; nationwide; low entry cost; good for closing timelines.
• Cons: Broker model; confirm STR use is explicitly covered, not just landlord use.
• When to skip it: Complex portfolios or high-liability properties that need a dedicated STR policy.
• What to tell your client: "If we need proof of coverage to close this week, Obie is fast and affordable — just confirm the policy names short-term rental use explicitly before you bind it."

Safely offers STR-focused coverage and guest screening and is worth a comparison quote. Allstate offers STR options with nationwide availability, though its HostAdvantage STR program is limited to select states. Get either in writing next to Proper before recommending — and confirm STR use is explicitly covered.

What to make sure your client understands

Three things separate an agent who looks like an advisor from one who looks like a salesperson on this topic.

First, a homeowner's or standard landlord policy is not STR coverage. Most exclude commercial/short-term rental use, and a denied claim after a guest injury can be financially ruinous. Your client needs a policy that names short-term rental use explicitly.

Second, platform "host guarantees" are not insurance. Airbnb's AirCover and similar programs are limited, secondary, and full of exclusions. They're a backstop, not a policy. Tell your client to carry their own.

Third, match the policy to the use. A full-time, high-occupancy STR needs commercial-grade liability and all-channel coverage (Proper). A part-time host might be fine with a lighter landlord-plus-STR policy (Obie, Steadily). Right-sizing the policy is the advice that builds trust.

The bottom line

Recommend Proper as the default for any serious STR investor — it's the most complete coverage and removes the gaps that sink claims. Point value-focused, buy-and-hold clients to Steadily, and use Obie when speed and cost drive the decision. Whatever they choose, make them confirm one thing in writing: the policy explicitly covers short-term rental use. That single sentence is the difference between a covered claim and a catastrophe.

FAQ

Almost never. Most exclude short-term/commercial rental use. Your client needs a dedicated STR policy.

No. It's a limited, secondary backstop with exclusions — not a substitute for a real policy. Clients should carry their own coverage.

Roughly $1,500-$4,000/year for comprehensive coverage (Proper), $2,000-$3,000 for landlord-style (Steadily), or from ~$40/month for a basic single-property policy (Obie).

For most STRs, $1M+ commercial liability is the standard given guest-injury exposure. Confirm limits with the provider.

Yes — Proper covers all booking channels under a single policy, which is simpler and safer than relying on platform-specific guarantees.

This article is editorial and informational, not insurance or legal advice. Coverage, pricing, and availability vary by property, state, and carrier — confirm all terms directly with the provider. Last updated June 16, 2026.

Ready to protect your client's STR with the right insurance coverage?

Proper Insurance is the STR-specific gold standard — covering Airbnb, Vrbo, and direct bookings under one policy with no cap on guest-caused damage.

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Common questions about short-term rental insurance

Does Airbnb AirCover replace real STR insurance?

No. AirCover is a host guarantee program, not an insurance policy. It has significant coverage gaps — it doesn't cover every guest-caused damage scenario, has claims processes controlled by Airbnb, and provides no liability coverage outside of Airbnb bookings. Properties listed on Vrbo, direct booking channels, or multiple platforms need a dedicated STR insurance policy that covers all channels.

What does STR insurance cover that a homeowner's policy doesn't?

Standard homeowner's policies exclude or significantly limit coverage for commercial rental activity. STR-specific policies cover guest-caused property damage, commercial liability for guest injuries, loss of rental income, and typically allow listing on multiple platforms including Airbnb, Vrbo, and direct booking. Proper Insurance and other STR-specific carriers are purpose-built for this use case.

How much does STR insurance cost?

STR insurance typically costs 2-3x a standard homeowner's policy for the same property. Premiums vary by location, property value, occupancy rate, and coverage level. For underwriting purposes, VaultSTR models STR insurance at approximately 2-3x standard homeowner rates. Get a quote before closing so there are no surprises in your cash flow model.

Do I need separate insurance for each booking platform?

No. A quality STR insurance policy covers the property for all short-term rental use regardless of which platform the booking came from — Airbnb, Vrbo, direct bookings, or any other channel. This is one of the key advantages of a dedicated STR policy over relying on platform-specific programs like AirCover.

Where can I compare STR insurance providers?

VaultSTR ranks STR insurance providers by coverage breadth, liability limits, platform allowance, and claims process at vaultstr.com/str-insurance. Rankings are independent with no sponsored placements.