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Loss of income coverage is often included with short term rental business policies, but it’s not part of Airbnb or VRBO’s insurance programs.

In some circumstances, the lost income may even exceed the cost of putting in a new kitchen. You’re not only out the cost of the repairs, you’re not going to be able to rent the unit out for at least 6-8 weeks, perhaps much longer. Let’s say a guest manages to burn down the kitchen during his or her stay. Notably, Airbnb and VRBO’s policies specifically do not include reimbursement for lost earnings. But they’re absolutely not a replacement for regular homeowners’ insurance, and are not nearly as comprehensive as short term rental insurance policies from regular carriers. We generally view these platform policies as nice “bonus” coverage that might prove useful in some circumstances. Airbnb’s insurance coverage is primary, meaning it kicks in before any other policy you may have, while VRBO’s is not and will respond concurrent with other policies. Both are automatic with each paid booking and both top out at $1M of coverage per occurrence. The other option of course, which we don’t recommend, is to simply rely on Airbnb’s Host Protection Insurance or VRBO’s Liability Insurance. Airbnb & VRBO Insurance is Not Sufficient That said, most Airbnb and VRBO hosts do much more annual volume, so you’ll need a different policy or, at a minimum, written confirmation from your insurer that regular short term rental activity is covered. If you only rent out your home once a year, then you may be able to get away with a regular homeowners’ policy since your limited rental use will likely be considered incidental. In fact, many insurers now offer policies expressly designed for operators of short term rentals. Vacation rental property owners are supposed to carry a business insurance policy instead. And you really can’t expect Airbnb to save the day either. Once your insurer finds out you’re running a vacation rental business instead of living on the property, all bets are off. No one’s poured concrete down a drain yet? Hit you with a slip and fall lawsuit? Or burned down the woodshed in a rum-fueled inferno? If one of these or a million other possible outcomes take place at one of your vacation rentals, the last thing you want is to get caught holding the freebie Airbnb insurance alongside a regular old homeowners’ insurance policy. Consider yourself lucky if you haven’t yet had to pull the rip cord and deploy the standard Airbnb insurance policy that’s included with all bookings.