- July 29, 2025
- Category: News, Home, Tips & Advice
Running a short-term rental is a great way to earn extra income. Whether you’re hosting through Airbnb, VRBO, or another platform, it’s important to understand how your home insurance works. Or doesn’t work. When it comes to guests.
Most homeowners assume their regular policy covers everything. In reality, short-term rentals come with risks that often fall outside of standard coverage.
What’s the risk?
Hosting paying guests, even occasionally, can expose you to:
- Property damage
- Theft
- Guest injuries and liability lawsuits
- Loss of income if your space becomes unlivable
Even a small incident, like a fire caused by a guest or someone slipping on the front steps, can lead to big bills or denied claims.
Does Airbnb cover me?
Airbnb does offer a Host Guarantee and Host Protection Insurance, but:
- It’s not the same as insurance you control
- There are limitations and exclusions
- It may not meet your lender’s or city’s requirements
Let’s get you covered. Get a quote today.
What kind of insurance do I need?
The right policy depends on how often you rent out your space.
- Occasional rentals, such as weekends or summer weeks, may only need a rider or endorsement on your home insurance
- Frequent or full-time hosting usually requires a proper commercial or short-term rental policy
This kind of coverage protects you from damage, liability, and income loss. It also keeps you in good standing with your mortgage lender and insurer.
How Cluett Insurance Comes In?
We’ve helped many local homeowners and cottage owners get insured the right way for short-term rentals. Whether it’s your main home, a basement suite, or a cottage in PEI, we can find a policy that works for you. We’ll also explain what’s included and what’s not.
Still unsure if you’re covered? Let’s talk before you list your space.
Hosting should feel rewarding, not risky.