Short answer: yes. Longer answer: your homeowner's policy isn't built for short-term rentals, your landlord policy isn't built for it either, and the platform's "host protection" isn't what most hosts think it is. Let me walk through what's actually going on.
Why your homeowner's policy won't cover it
A standard homeowner's policy is written for owner-occupied residences. The moment you start renting the property — even occasionally — you've changed the underlying use of the building, and most carriers consider that a material change that voids coverage if not disclosed.
That means: if a guest sets fire to your kitchen, your homeowner's claim may be denied on the basis that you were using the home commercially without telling the carrier. Some carriers have started allowing limited short-term rental activity — usually a handful of nights per year — but it varies dramatically and the policy needs to say so explicitly.
Why a landlord policy isn't quite right either
The DP-3 landlord policy is designed for long-term tenancies — month-to-month or annual leases where a single tenant occupies the property and treats it as their home. Short-term rentals are different in ways that matter to the carrier:
- Higher guest turnover means more wear-and-tear claims and more chances for property damage.
- Strangers in your property create more liability exposure than a single tenant.
- The home is often partially furnished by you, which a landlord policy may not adequately cover for contents.
- Business income from rental activity isn't always covered the way a true commercial policy would.
What you actually need: a short-term rental policy
There's now a real product category for this. Carriers like Proper, Foremost, CBIZ, Slide, and several specialty carriers write policies designed for properties used as short-term rentals through Airbnb, VRBO, or independently. These policies generally cover:
- The structure at its full replacement value
- Personal property and furnishings you've placed for guest use
- Liability for guest injuries at higher limits than standard policies
- Loss of rental income if the property becomes uninhabitable after a covered loss
- Theft and vandalism by guests (often excluded from regular policies)
- Bed bugs, in some cases — which is a real issue with high guest turnover
What about Airbnb's "Host Damage Protection" and "Host Liability Insurance"?
The platform provides some protection, but it's secondary, limited, and you don't want to rely on it as your primary coverage. Here's the reality:
- It only applies to bookings made through Airbnb. Off-platform rentals get nothing.
- The "AirCover" amounts sound impressive on paper, but actual payouts are inconsistent and slow.
- It doesn't replace your need for a proper policy — and many host-side claims aren't covered at all.
- The platform can change the terms unilaterally at any time.
Treat platform protection as a small backstop, not the foundation.
One more thing: add umbrella coverage
Every additional guest is a new liability event. For a short-term rental portfolio, a $1-2M umbrella sitting on top of your property's underlying liability is the right move. Umbrella is cheap — usually a few hundred dollars per million per year — and the protection it adds when a guest gets hurt is enormous.
What to do this week
- Tell your current insurance agent the property is being used as a short-term rental. If they can't write the right coverage, they'll tell you — and you can find someone who can.
- Get quotes specifically for STR-rated policies. Generic landlord coverage isn't sufficient; you need the right product class.
- Make sure the LLC matches. If your STR is owned by an LLC, the policy should be in the LLC's name. Mismatches can blow up the asset protection you set up the LLC to provide.
- Add umbrella coverage across your portfolio. Especially if you have multiple STRs.