Liability Insurance

Liability insurance for vacation rentals is coverage that protects property owners and managers against financial claims arising from guest injuries, property damage caused to third parties, or other incidents occurring at the rental property. Standard homeowners insurance often excludes short-term rental activity, making dedicated STR liability coverage essential. Coverage typically includes bodily injury claims (a guest slipping on a wet floor), property damage to neighbors or third parties, legal defense costs, and medical payments. Many property management companies require owners to carry a minimum liability coverage amount, often $1 million, as a condition of the management agreement. While OTAs like Airbnb offer host protection programs, these should be considered supplementary rather than a replacement for a dedicated liability policy.