Understanding Airbnb and VRBO Insurance 

If you plan to use a property as a VRBO or Airbnb rental, it’s crucial to get appropriate insurance. Renting out property by participating in short-term rental programs on a platform like VRBO or Airbnb can help generate income; however, it’s important to research how insurance can help provide financial protection. Even if you are renting out your home, your regular homeowners insurance won’t typically provide insurance coverage.  

Talk with the agents at Advance Insurance serving the Orem, Provo, Salt Lake City, Ogden and Lehi, Utah, areas to learn more about how to properly insure your VRBO or Airbnb rental and get a quote.  

What Coverage Should I Purchase for My Airbnb or VRBO Rental? 

Airbnb provides optional insurance protection to renters. Their host guarantee coverage policy includes up to $1 million in coverage if Airbnb guests cause property damage. Host protection insurance includes up to $1 million in liability coverage if the host is legally liable for third-party injury.  

VRBO provides access to optional insurance protection through one of their insurance partners that provides full coverage whether the property is vacant, rented, or used by the owner or their guests.  

Neither company requires that hosts purchase insurance from a specific provider.  

Your agent can help you evaluate these optional policies to determine whether they may meet your needs. They may also recommend that you choose the following coverages: 

• Short-term rental insurance helps cover any income you lose if a guest cancels their reservation. It may also help cover losses due to property damage or theft. 
• Home-sharing insurance provides property damage coverage and liability coverage for guests and their personal possessions.  

Homeowners Insurance Coverage for Airbnb and VRBO Rentals 

Your homeowners insurance falls under personal lines insurance. Your homeowners insurance policy provides essential coverage but doesn’t offer coverage for using your home as a business—this falls under commercial insurance. If you plan to rent your home out occasionally, talk with your agent about getting the correct and adequate insurance coverage.  

Without appropriate insurance coverage, you may be vulnerable to the financial consequences of accidents and incidents beyond your control.  

Contact Us Today 

Contact the agents at Advance Insurance today to find out how having appropriate insurance for your Airbnb or VRBO rental can help protect your financial stability and get a quote.