Short-term rental platforms like Airbnb have fundamentally changed how Americans earn income from real estate. What started as a side hustle for some has evolved into a multi-billion-dollar industry, with more than 2.5 million active listings in the United States alone. Yet many hosts discover too late that a standard homeowner’s policy—or even traditional landlord insurance—doesn’t fully protect them when paying guests occupy the property. The right landlord insurance comparison for Airbnb rentals can be the difference between a profitable hosting business and an expensive lesson in uncovered losses. This article walks you through everything you need to know to secure robust coverage, slash unnecessary premiums, and keep more of every booking dollar in your pocket.
Understanding Landlord Insurance Designed for Airbnb and Other STR Platforms
Why Standard Policies Fall Short
Traditional homeowner’s insurance is built around owner-occupied premises. Once you hand the keys to a paying guest—even for one night—your coverage can be partially or completely voided. Landlord insurance (also called dwelling fire or rental dwelling policies) is a step up, but most carriers still exclude business activity such as nightly rentals. That leaves hosts exposed to:
- Property damage caused by guests (red wine on hardwood, broken furniture, or worse)
- Theft or vandalism during a stay
- Guest injury claims leading to six-figure lawsuits
- Loss of rental income while the unit is repaired after a covered loss
- Regulatory fines if local short-term-rental ordinances change
Airbnb-specific landlord insurance (often marketed as short-term rental insurance, vacation rental insurance, or host insurance) closes these gaps. These policies are filed with state regulators and explicitly cover properties used for transient occupancy, giving hosts the same peace of mind long-term landlords enjoy.
Key Marketplace Changes in 2025
The past 12 months have seen rapid adoption of STR endorsements by mainstream carriers. State Farm, Allstate, and Liberty Mutual now allow existing landlord-policyholders to add short-term rental activity for as little as $8–$15 per month, provided the property meets underwriting guidelines. Meanwhile, digital-native MGA’s (Managing General Agents) like Proper Insurance, Foremost (a Farmers subsidiary), and Safely have expanded into 48 states with policies that replace—rather than supplement—standard coverage, often bundling commercial-grade liability and loss-of-income protection. Knowing which route saves more money is exactly why a side-by-side comparison is crucial.
Key Components of a Top-Tier Airbnb Landlord Insurance Policy
Core Coverages Every Host Should Demand
- Building/Structure – Rebuild cost valuation is non-negotiable. Look for extended replacement cost (125 %–150 % of dwelling limit) to protect against inflation and rising labor costs.
- Contents/Furnishings – Host-provided furniture, electronics, décor, and consumables need scheduled limits. Ask for replacement cost rather than depreciated actual cash value.
- Commercial General Liability – Minimum $1 million per occurrence and $2 million aggregate. Some carriers now offer $2 million/$4 million as the default because juries increasingly award higher verdicts for guest injuries.
- Loss of Rents – Ensures you keep earning booking revenue while the unit is uninhabitable after a covered loss. Look for actual loss sustained wording rather than a fixed monthly cap.
- Ordinance & Law – Older properties may require costly code upgrades after a fire or storm. This endorsement covers those additional expenses.
- Equipment Breakdown – Air-conditioning, pool heaters, and Wi-Fi routers are essential to guest experience. A $25,000 sub-limit keeps your calendar open.
Optional But Powerful Upgrades
- Bed Bug & Pest Control – Covers remediation and lost revenue after an infestation.
- Identity Theft & Cyber Liability – Protects against fraudulent bookings or data breaches on your own direct-booking website.
- Pet Damage Coverage – Reimburses for clawed doors, chewed baseboards, and stained carpets when you accept pet-friendly reservations.
- Host Assist Services – 24/7 hotline for locksmith, plumber, or HVAC technician dispatched immediately when a guest reports an issue.
Policy Structure: Replacement vs. Endorsement
There are two ways to become fully insured:
| Coverage Approach | Pros | Cons | Typical Annual Premium |
|---|---|---|---|
| Stand-Alone STR Policy | Comprehensive wording written for short-term rentals; no gaps; includes $1M+ liability | Slightly higher premium; may require inspection | $1,800–$3,500 |
| Homeowners/Landlord Policy + STR Endorsement | Lower incremental cost; leverages existing relationship | May cap occupancy at 30–60 days per year; liability sub-limits often only $100k–$300k | $300–$1,200 add-on |
2025 Comparison of the Best Landlord Insurance Providers for Airbnb Hosts
Evaluation Methodology
We scored providers on five weighted criteria: coverage breadth (30 %), financial strength (20 %), claims reputation (20 %), pricing (20 %), and digital experience (10 %). Scores are out of 100 possible points.
The Top 5 Ranked Providers
1. Proper Insurance – 96/100 (Best Overall)
- Carrier Paper: Lloyd’s of London (A+ AM Best)
- What Makes It Special: Purpose-built policy that replaces homeowner’s or landlord coverage. Includes $1 million premises liability plus $1 million excess liability over the underlying policy. Automatic blanket limits for furnishings up to $100k.
- Premium Range (example 1,800 sq ft Florida condo): $2,200–$2,600 annually.
- Drawbacks: Requires exterior and interior photos; 2 % hurricane deductible in coastal zones.
2. Foremost (Farmers) – 91/100 (Best for Bundling)
- Carrier Paper: Foremost Insurance Group (A Farmers subsidiary, A- AM Best)
- What Makes It Special: Offers both Short-Term Rental Policy and Seasonal/Secondary Home Policy with STR endorsement. Multi-policy discounts with auto or umbrella insurance.
- Premium Range: $1,600–$2,300.
- Drawbacks: No pet damage endorsement; contents limited to 40 % of dwelling coverage.
3. Safely (Assurant) – 89/100 (Best for Claims Service)
- Carrier Paper: Assurant Specialty Property (A- AM Best)
- What Makes It Special: 24/7 claims hotline with guaranteed adjuster callback within 30 minutes. Includes $25k guest medical payments regardless of fault, helping avoid lawsuits.
- Premium Range: $1,900–$2,400.
- Drawbacks: Currently available in only 42 states; does not cover intentional acts of guests.
4. Allstate HostAdvantage – 85/100 (Best Budget Add-On)
- Carrier Paper: Allstate Fire & Casualty (A+ AM Best)
- What Makes It Special: Endorsement on existing homeowner’s or landlord policy. Adds $10k–$50k of property & theft coverage plus $1M liability for as little as $8 per month in many states.
- Premium Range: $96–$600 annually.
- Drawbacks: Does not cover loss of rents; occupancy limited to 62 days per year in some states.
5. State Farm Home-Sharing Coverage – 82/100 (Best for Existing Customers)
- Carrier Paper: State Farm (A++ AM Best)
- What Makes It Special: Seamless addition to existing policy; same deductible and claims team. Available in 43 states as of May 2025.
- Premium Range: $100–$300 add-on.
- Drawbacks: Liability extension only $100k unless you also buy a State Farm umbrella. No bed-bug protection.
Benefits and Importance of the Right Coverage
Profit Protection in a Lawsuit-Happy Environment
A slip-and-fall on a wet pool deck or a balcony railing that gives way can trigger a legal claim exceeding $500,000 in medical costs and attorney fees. The Insurance Information Institute reports that personal-injury verdicts against property owners rose 48 % from 2019 to 2025. Robust landlord insurance prevents one incident from wiping out years of positive cash flow and equity growth.
Preserving Your Superhost Status
Airbnb’s Host Protection Insurance offers secondary coverage—only after your own policy denies or exhausts limits. If you have no primary policy, Airbnb’s plan can refuse to pay, citing policy exclusions (e.g., mold, intentional loss, communicable disease). Having primary coverage keeps you compliant with Airbnb’s Terms of Service and avoids host account suspension while claims are investigated.
Tax Deductions & Cash-Flow Optimization
The IRS treats short-term rental insurance premiums as ordinary and necessary business expenses. A host paying $2,400 annually for a premium policy in the 24 % federal bracket effectively reduces the net cost to $1,824. Factor in depreciation, cleaning fees, and other write-offs, and the right policy can be cash-flow positive from day one.
Practical Applications: How to Compare Quotes Like a Pro
Step 1: Build a Risk Profile
- Document replacement cost of the structure (use a licensed appraiser or online replacement-cost calculator).
- Inventory contents room-by-room and total the replacement cost new of furnishings and electronics.
- Check local ordinances: Does your city cap nights rented or require fire suppression systems?
- Tally historical occupancy: 70 % annual occupancy demands broader coverage than occasional weekend use.
Step 2: Gather Quotes on an Apples-to-Apples Basis
Send identical data to every carrier:
- Year built, square footage, construction type, roof age
- Distance to fire hydrant & station
- Security features (deadbolts, cameras, smart locks)
- Maximum number of guests allowed
- Whether pool, hot tub, or fireplace exists
Step 3: Analyze the Numbers and Hidden Exclusions
Red Flag Why It Matters What to Ask the Agent Policy excludes intoxicated guest injuries Alcohol-related incidents are common in vacation markets “Does the policy subrogate against the guest if they cause injury while intoxicated?” Actual Cash Value on contents You’ll only receive depreciated value for three-year-old sofas and TVs “Can I upgrade to replacement cost for an additional premium?”
