Short-term Rentals and Holiday Visitors: What Homeowners Need to Know About Insurance Liability

Opening your home to short-term tenants or holiday guests can be a rewarding experience, but it also brings nuanced insurance and liability considerations. Whether you’re listing your property on platforms like Airbnb or VRBO or simply welcoming friends and family for the holidays, it’s important to understand how your insurance coverage may apply to these situations.

Understanding Insurance Risks for Short-Term Rentals

When you rent out your home, even for a few days, your standard homeowners insurance policy may not provide the coverage you expect. Many policies exclude or limit financial protection for short-term rentals or other scenarios in which you are not the resident of the property in question. This means that if a guest is injured or damages your property during their stay, you could be responsible for resulting costs.

Specialized short-term rental insurance or endorsements can help fill these gaps. These types of coverage are designed to address the unique risks of hosting paying guests, potentially offering coverage for property damage, liability claims and, in some cases, even loss of rental income should the residence be rendered uninhabitable due to a covered peril.

Liability Concerns With Holiday Visitors

Even if you’re not charging guests to stay, hosting friends or family over the holidays can increase your liability exposure. Accidents happen—someone could slip on a wet floor, trip on a loose rug or be burned while helping prepare a meal. If a guest is injured on your property, you may be held liable for their medical expenses or other damages.

Reviewing your liability coverage limits is a smart move before the holiday season. Our team can help you determine if your current policy provides sufficient coverage and recommend additional solutions, such as a personal umbrella insurance policy.

How We Help Homeowners

At Dynamic General Insurance Services, we understand the unique insurance needs of homeowners as it relates to welcoming guests and renters to your property. Our team can review your current policy, explain your options and recommend coverage that fits your situation.

Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.