If you own a short-term rental (STR), your insurance policy isn’t just paperwork—it’s protection for your business, your guests, and your peace of mind.
But here’s the truth: standard homeowners or landlord policies often won’t cover you. And when it comes time to file a claim? The wrong policy can leave you paying out of pocket.
At Signature Stays, we believe every STR owner should approach insurance proactively—paired with seasonal maintenance to minimize risk and ensure long-term performance.
Why STR Insurance Is Different
And What Happens When You Don’t Have the Right Coverage
Traditional policies weren’t designed for the demands of short-term rentals: high guest turnover, frequent use of amenities, and the risk of property damage or injury.
Here’s what STR-specific policies cover (and why they matter):
- Guest-caused damages: Broken furniture, flooded bathrooms, stained flooring—your guest caused it, but a homeowner’s policy may deny it.
- Liability coverage: If a guest gets injured tripping over a loose rug or slipping by the pool, you could be sued. STR policies typically include expanded liability protection.
- Loss of income: A house fire or water leak can take your property offline for weeks. With STR insurance, you’re compensated for that lost revenue.
When Claims Get Denied: Real Scenarios
Not having the right insurance—or missing a few critical steps—can lead to denied claims. Here’s how it happens:
- Scenario 1: You Rented Your Home, But Told Your Insurer You Live There Full-Time
Outcome: Claim denied for water damage after a guest overflowed the tub.
Why: The policy didn’t reflect business use or short-term occupancy. - Scenario 2: You Have Landlord Insurance, But the Stay Was Under 30 Days
Outcome: Liability claim denied after a guest slipped on icy stairs.
Why: Landlord policies typically exclude short-term “transient” guests. - Scenario 3: Preventable Maintenance Was Ignored
Outcome: Burst pipe in winter. Insurance paid partial claim, denied rest due to negligence.
Why: The insurer deemed the damage preventable with routine inspection.
What About Guest-Paid Insurance?
Many STR platforms, like Airbnb and Vrbo, include some form of guest-related damage protection—either through host guarantees or guest-paid third-party insurance. But these options don’t always cover everything.
How Guest Coverage Adds a Layer of Protection
- Airbnb AirCover offers host damage protection, but it’s not a substitute for STR insurance and has limitations.
- Guest-purchased insurance policies (offered at booking on some platforms) can cover accidental damage and some liability scenarios.
What this means for you: These protections can reduce the likelihood of needing to file on your own policy, helping keep your premiums lower. But they’re not guaranteed—or fast.
Who Pays? Guest vs. Owner Claims: How It Works
When damage occurs, here’s the general claim flow:
- Assess the damage: Document with detailed photos and written notes.
- Check your platform’s policy first: If the damage happened during a guest stay, start by filing a claim through Airbnb/Vrbo or your third-party damage protection provider.
- Wait for resolution (but not forever): If the platform or guest insurance doesn’t fully cover the loss—or denies the claim—you may need to turn to your STR policy.
- File with your insurance: Your provider may require evidence that you first sought coverage from the platform or guest’s protection.
Pro Tips from Signature Partners
- Ensure you have adequate property and liability coverages between the guest and your STR insurance
- Update the right limits every few years in consultation with your licensed insurance agent
