Short-term rental platforms like Airbnb and VRBO have transformed the way people travel and invest in real estate. If you rent out your Colorado home, condo, or vacation property, you may assume your standard homeowners insurance covers you—but that’s not always the case. Without the right short-term rental insurance, you could be left paying out-of-pocket for property damage, liability claims, or guest injuries.

Does Homeowners Insurance Cover Short-Term Rentals?

❌ Not always. Standard homeowners policies typically exclude commercial activity—and renting your home qualifies. If you file a claim for damage caused by a guest, your insurer may deny coverage.

A homeowners policy typically covers:
✔ Your primary residence – Not a rental business.
✔ Personal belongings – But not if rented for profit.
✔ Liability coverage – Only for personal (not business) use.

If you’re renting out your home regularly, you need additional coverage.

How Short-Term Rental Insurance Differs from Homeowners Insurance

🏠 Homeowners Insurance

• Protects owner-occupied homes.
• May not cover guest-caused damage.
• Excludes business use (renting your home is a business activity).

🏢 Landlord Insurance (for Long-Term Rentals)

• Covers tenants who stay 30+ days.
• Provides property damage & liability coverage.
• Does NOT cover short-term rentals or vacation stays.

🏡 Short-Term Rental Insurance (For Airbnb & VRBO Hosts)

• Designed for rentals shorter than 30 days.
• Covers guest-caused property damage.
• Provides liability coverage if a guest is injured.
• Protects against income loss due to cancellations or property damage.

How to Get Proper Insurance for Your Short-Term Rental

✔ Ask Your Insurer About an Endorsement – Some home insurers offer short-term rental endorsements as an add-on to your existing policy.
✔ Consider a Commercial Policy – If you rent often, a business insurance policy may be a better fit.
✔ Use Airbnb’s Built-In Protection, But Don’t Rely on It – Airbnb offers AirCover, but it has coverage limits and exclusions.

Final Thoughts

Short-term rentals can be profitable, but they come with insurance risks. Standard homeowners insurance won’t cover many rental-related claims, so make sure you have the right short-term rental policy in place. Protect your property and finances before handing over the keys to your next guest.