Short-Term Rentals and Summer Guests: Are You Properly Insured?

​Renting out your home or hosting summer guests?

Learn how short-term rentals, platforms like Airbnb, and unexpected liabilities can affect your home insurance—and what coverage you need to stay protected.

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With the rise of short-term rental platforms like Airbnb and Vrbo, many homeowners are cashing in by opening their homes to summer guests. Whether you're renting out a single room or your entire home, it's crucial to understand how this decision impacts your insurance coverage.

Does Homeowners Insurance Cover Short-Term Rentals?
Most standard homeowners insurance policies (HO-3 or similar) are designed for owner-occupied properties—not properties used as vacation rentals. If you’re using your home to generate income through short-term guests, you might need additional coverage.

Without the right protection, claims related to guest injuries or property damage could be denied.

What Are Your Coverage Options?
1. Endorsements for Short-Term Rentals
Some carriers—like Foremost Insurance—offer endorsements you can add to your existing policy that extend coverage for occasional short-term rentals. These are ideal for homeowners who rent only a few times a year.
2. Landlord or Rental Dwelling Policies (DP-3)
If you rent regularly or have a second property used solely for rentals, a rental dwelling policy (like a DP-3) is more appropriate. This covers the structure, liability, and loss of rental income in case the home becomes uninhabitable due to a covered event. (Always make sure your landlord policy covers your property as a short term rental as many only allow long term rental agreements.)
3. Business Insurance or Host Protection
Some platforms offer limited liability protection, such as Airbnb’s Host Guarantee, but these should never be seen as a replacement for proper insurance. Coverage limits vary, and exclusions may apply.

Summer Guests and Liability Risk
Even if you're not listing your property online, having summer guests can increase liability risks. Here’s what to consider:

• Slip and fall injuries in unfamiliar homes
• Property damage caused by guests (accidental or otherwise)
• Dog bites or pool-related accidents

If a guest gets hurt, you could be held liable—especially if negligence (like lack of fencing around a pool) is proven.


✅ Key Takeaways:

• Homeowners insurance usually excludes regular short-term rentals.
• Ask your agent if you need a rental endorsement or DP-3 policy.
• Don’t rely solely on Airbnb or Vrbo’s built-in host protection.
• Consider umbrella insurance for extra peace of mind.

Final Thoughts
Short-term rentals can be a great source of summer income, but they come with risks. Make sure your insurance is up to date before welcoming guests—because a simple oversight could cost more than your summer earnings.

Disclaimer: Coverage varies by carrier and policy. Always consult your licensed insurance agent for specific guidance.