Short-Term Rental Insurance in Florida

What Is Short-Term Rental Insurance?

Short-term rental insurance is specialized coverage designed for property owners who rent their homes or investment properties on a short-term basis through platforms like Airbnb, VRBO, HomeAway, or directly to vacation guests. This insurance addresses the unique risks of having a rotating stream of guests staying in your property, which creates exposures that standard homeowners or landlord insurance policies do not cover.

Why You Need Short-Term Rental Insurance

• Standard homeowners insurance excludes coverage for business activities including short-term rentals
• Protects against higher liability risks from frequently changing guests who are unfamiliar with your property
• Covers damage caused by guests that goes beyond normal wear and tear
• Provides loss of rental income coverage if your property is damaged and cannot be rented
• In Florida's competitive vacation rental market, proper insurance protects your investment and income stream

Common Coverages

Short-term rental insurance includes property coverage for the dwelling structure and any furnishings, appliances, and equipment you provide for guests. Liability coverage protects you if a guest is injured on your property or if their belongings are damaged during their stay. Loss of rental income coverage reimburses you for bookings you must cancel if the property becomes uninhabitable due to covered damage. Many policies also include vandalism and malicious mischief coverage, theft coverage for your property and furnishings, and bed bug infestation coverage. You can often add coverage for pools, hot tubs, and other amenities that increase your liability exposure. Some policies also cover legal expenses if disputes arise with guests.

How Is This Different From Regular Landlord Insurance?

Short-term rental insurance differs from landlord insurance in several important ways. The liability exposure is higher because you have frequent turnover of guests who are less familiar with the property. Coverage typically includes furnished property and higher-value items that landlord policies do not protect as comprehensively. Short-term rental policies account for the business operations aspect, including guest interactions and higher property usage. The loss of income coverage is calculated differently, based on your nightly or weekly rental rates rather than monthly rent.

Does Platform Coverage Replace My Need for Insurance?

No. While platforms like Airbnb offer host protection programs, these are secondary coverages with significant limitations and exclusions. They often have high deductibles, do not cover many types of claims, and may not respond as quickly as your own insurance policy. Relying solely on platform coverage leaves substantial gaps in your protection. The Gordon Agency recommends maintaining your own comprehensive short-term rental insurance policy.

What If I Only Rent Part of the Year?

Even if you only rent your property occasionally, you still need short-term rental coverage. Many policies can be structured to account for partial-year rentals, and some insurers offer flexible coverage that adjusts based on your rental activity. The key is disclosing your rental activities to your insurance agent so you have proper coverage in place whenever you have guests. The Gordon Agency can help you find the right solution for your specific rental situation.