Your Homeowner's Policy Won't Cover Your Rental. Period.
Top picks compared — find your fit
VaultSTR's ranked recommendations
1st
Proper Insurance — Best Overall
The most comprehensive STR-specific policy on the market. Covers property damage, liability, and income loss with clear terms and a claims process that doesn't run through an OTA. The industry standard for serious operators.
2nd
Safely — Best Per-Stay Coverage
A unique hybrid model — guest screening before arrival plus per-stay insurance protection. Layers on top of your existing policy or AirCover. The guest verification database catches high-risk bookings before they become claims.
3rd
Obie Insurance — Best Budget Option
Starting at $1,200/yr with solid coverage limits for the price. Digital-first application process takes minutes. Best for newer operators who want real STR insurance without the premium price tag of full-service carriers.
Standard homeowner's insurance excludes commercial activity. If you are renting your property on Airbnb or Vrbo, you need STR-specific coverage — and you need it before your first guest checks in.
//01
Most STR hosts don't realize their homeowner's insurance policy contains exclusions for commercial activity — which is exactly how most insurers classify short-term rental income. A guest injury, property damage, or liability claim can result in a denied claim, a cancelled policy, or both.
//02
Airbnb's AirCover program provides some protection, but it is not a substitute for a standalone insurance policy. Coverage limits are lower, the claims process is managed by Airbnb (not an independent insurer), and coverage gaps exist for high-value items, liability scenarios, and properties rented on multiple platforms.
//03
The STR insurance market has matured significantly since 2020. Several carriers now offer purpose-built policies that cover the unique liability and property risks of vacation rental properties — at premiums that are competitive with standard landlord insurance.
The criteria behind every VaultSTR ranking
//01
Coverage scope
Property damage, liability, income loss, and guest injury — the most comprehensive policies cover all four.
//02
Claim experience
How straightforward is the claims process? A policy is only as good as the experience of actually using it. Look for carriers with STR-specific claims teams.
//03
Multi-platform coverage
Does it cover Airbnb, Vrbo, direct bookings, and other OTAs? Your policy should follow the property, not the platform.
//04
Income loss coverage
What happens when a covered loss forces you to cancel bookings? Income protection during a claims-related closure can be worth the premium alone.
//05
Exclusions and sub-limits
What is notably not covered? Pool liability, hot tub damage, and short-term tenant personal property are common gaps in entry-level policies.
//06
Premium competitiveness by market
STR insurance premiums vary by location, property value, and coverage level. Get multiple quotes before committing.
Common questions answered
No — AirCover is a protection program, not an insurance policy. It doesn't cover all loss scenarios, has coverage limits that may not match your property's value, and provides no income loss coverage if a damage event forces you to cancel bookings.
Almost certainly not. Most homeowner's policies explicitly exclude commercial activity, and insurance companies have denied claims specifically because the property was rented on Airbnb at the time of the incident.
For liability, $1M per occurrence is the minimum you should carry — $2M is better for properties in high-traffic or high-liability locations (pools, hot tubs, stairs). For property coverage, insure for replacement cost — not market value.
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