Vacation Rental Insurance: 6 of the Best Companies [2024]

Travelers are returning to the road in 2024, and they’re turning to short-term rentals of vacation properties more than ever. In 2023, 64% of Americans expected to rent vacation homes and apartments in their travels.

As demand and rentals increase, so do the risks of managing short-term rental properties. While many major renter companies offer some form of insurance, rental property managers turn to outside insurance companies for more comprehensive protection against liability and property damage. 

Finding an insurer that fits all management needs can be a task, so Safely has lined up six of the leading rental property companies that offer the best vacation insurance in 2024. These companies have proven to be effective and accommodating to short-term rental property managers and offer comprehensive slates of coverage.

To make it easier, we’ve outlined:

• The important features to look for when comparing vacation rental insurance companies
• What a good vacation rental insurance plan should cover
• The best vacation rental insurance policies, and why they may be a good option for you

Of course, full disclosure: You’re reading this on the Safely blog, and it’s no surprise that we work hard to offer what we believe is the best vacation rental insurance option.

But we also understand that as a responsible vacation rental host or property manager, you’ll want to do your research before you make a decision. And with something as critically important as insurance, you want to be absolutely certain you’ve looked at all the best options before you invest.

That’s why we’re here. We’ve compared the following companies to help you decide who is the best short–term rental insurance provider in 2024:

1. Safely
2. Superhog
3. Proper
4. Rental Guardian
5. Generali
6. American Family

We’ve summarized each and suggested which might be best for you depending on your vacation rental and business needs.

What makes a best-in-class vacation / short term rental insurance company?

With so many short-term rental insurance options available, it’s important to identify the key features that will complement your business model.

To make an apples-to-apples comparison of the top vacation rental insurance companies, let’s review them in the following categories:

How easy is their claims process?

Good vacation rental insurance companies make it easy for you to make a claim with a process that’s fast and simple to follow. Online claims processing should feature easy-to-understand interfaces and clearly explained steps. It should also be easy to contact customer service, preferably at any time of day.

How quickly do they provide claims payouts?

When dealing with damage at your rental property, the last thing you want is a long payout time from your insurer. A good insurance company should have a strong history of fuss-free, fast payouts. Some states require insurance carriers to issue payouts within 30 days of filing, but many carriers profess to take much less time.

What are their policy terms, conditions, and commitments?

Good vacation rental companies should offer you the option to only pay for insurance when your property is actively being rented, so you’re not left paying out of pocket when you don’t have a reservation. Safely offers this benefit. 

The insurance carrier should also offer the option of customizing coverage to add incidents like accidental injury or vandalism.

Who is covered or named on the policy?

Look for vacation rental insurance policies that cover the property manager, homeowner, and guests. Some companies also offer coverage for animals if your guests plan on bringing pets.

How do they verify the identity of your renters?

Guest screening isn’t technically part of insurance, per se. However, many good vacation rental insurance companies offer it because it’s such a useful tool when it comes to preventing bad stays before they happen, and identifying potentially problematic guests before they arrive. The best guest screening platforms make the process unobtrusive and fast, and will scan for criminal records, as well as check for fraud risk and previous damage.

Does the company have a dedicated adjuster focusing on short-term rental insurance?

Learn whether the insurer has specific point people who concentrate on short-term vacation rentals. It’s not necessarily a deal-breaker if they don’t, but it’s helpful to have a specialist who understands the specific issues and risks short-term rental property managers face.

What is their reputation with clients and travelers?

Vacation rental insurance reviews give a snapshot of underwriters’ service, ease of use, and effectiveness. Look for well-reasoned, composed reviews from other rental property owners and their customers.

Are there limitations or requirements for specific rental platforms?

Verify that the insurance carrier offers coverage for properties on Airbnb, Vrbo, or whatever platform you use to promote your property. Some insurers may balk at covering unfamiliar rental platforms or have terms that overlap the coverage offered by the platform itself.

Here’s what vacation rental insurance should cover

Here’s what vacation rental insurance should cover

Now we’ve looked at what best-in-class companies should offer, let’s look at exactly what authorities believe policies with the best vacation rental insurance for 2024 should include. We recommend:

• Property contents and belongings – Ensure your policy covers the replacement cost
• Structural property damage – Good policies will cover labor and material costs too
• Bodily harm – Make sure you’re covered for issues such as the accidental physical injury of a guest
• Personal liability – Protect yourself in case an injured guest sues you
• Guest screening options – Screening guests in advance offers even more protection, so if this is included in your package, it’s definitely a bonus
• Business income – Safeguard your revenue stream with protection against business interruptions or temporary closures 

The 6 best short-term / vacation rental insurance companies

Here’s our pick of some of the most popular options for the best vacation rental insurance for 2024.

1. Safely

Safely provides comprehensive insurance specially designed for vacation rentals. That means our professionals understand the risks and issues that come with renting your home out to strangers, and we’re highly specialized in the industry.

Our claims process is quick and easy (simply take photos and submit the claim online), and offers coverage of up to $1,000,000 for injury and damage. Safely also offers guest screening as a complimentary service, which detects the risk of disrespectful guests, fraud, and even more serious crimes—so you can stop high-risk situations before they happen. Safely pays out claims within an average of four business days.

All we need is a name, birthdate, and address to check databases, court records, and existing reports of guests who have previously caused damage due to negligence. This creates even less risk to your property, less chance of neighbor complaints, and more peace of mind for everyone involved.

Safely also integrates with leading property management systems (PMSs) and online travel agency (OTA) platforms, so all of your technology works seamlessly together.

Best for: Property managers and homeowners who want total peace of mind that their businesses and guests are protected with quick claims and fast payouts.

What users say about Safely

“The claims process is insanely simple to go through, especially compared to other industry companies in vacation rentals. It’s also a really, really powerful thing when you can make a claim on something that isn’t necessarily accidental.” — Natile e Riorda, Monarch Luxury Villas

“I love working with everyone at Safely! They’re all kind and approachable. If I have a problem I can always talk to a real person. And, everyone in their different departments can help me whether it’s financing, claims, or just questions.” — Raina Pratt, Enjoy Montana VR

“We came on to Safely about three years ago [after] we discovered that Safely offered a lot more protection for ourselves and for our vacation rental owners, so it’s been a great move for us.” — Pam White, White Sail Realty

2. Superhog

Superhog offers damage and risk protection specially designed for vacation rentals and covers guests and property managers who have chosen the route of taking deposits or collecting damage waivers from their guests.

Its Host Guarantee covers up to $5,000,000. However, Superhog isn’t an insurance policy as such, and doesn’t cover property or liability, so users must have this on top. It covers damage to the owner’s property or belongings caused by a paying guest during a validated stay.

Superhog also offers AI-driven guest screening via its “Know Your Guest” app and automates the collection of payments from guests (and refunds, where necessary) such as deposits or damage waivers.

What users say about Superhog

“We have been working with Superhog for over 2 years now and we can’t recommend them enough. Excellent communication and the service is above and beyond.” — Roni Khatun, vacation rental host

3. Proper

Proper Insurance offers policies for Vrbo and Airbnb hosts, as well as insurance for properties that are sometimes used by their owners, or sometimes unoccupied. In partnership with underwriters Lloyd’s of London, it offers a robust policy option for accidental or intentional damage to buildings or contents, and guest injury.

It offers $1,000,000 worth of protection (with an optional $2,000,000 per occurrence), and coverage for amenities such as pools, hot tubs, bicycles, and other equipment. It offers protection in the event of accidents, but also for intentional damage or vandalism by guests (with no limit)

However, its policy summary makes no mention of guest screening, or of its claims process, nor of how long it takes for payouts to be made, and some reviewers have said that their claims process took a while and communication wasn’t as easy as they would have liked.

Best for: Hosts or property owners who want their vacation rental insurance to replace their existing policy (including homeowner’s insurance, landlord, and commercial rentals) and offer coverage even when the property is being used by the owner.

What users say about Proper

“Being able to provide Proper Insurance as a resource to our vacation rental clients is important, especially for the luxury homes we manage. Many of these owners have specific needs to which Proper sometimes is the only choice.” — Pete Slaga, Turnkey Vacation Rentals

4. Rental Guardian

Rental Guardian offers protection for a wide range of traveler needs, including for renters and students as well as property managers. It positions itself as a digital portal for property managers, and offers services such as reporting, invoicing, and profitability tips as well as online claims processing.

However, like Superhog, it doesn’t offer comprehensive rental insurance as such, and instead has a damage protection plan that protects hosts against accidental personal property damage by a booked guest. Its coverage ranges from $500 to $3,000 in the US and internationally, and up to $5,000 in the US alone.

Best for: Property managers who are looking only for damage protection—not comprehensive insurance—and who don’t need higher levels of protection (up to $5,000 for US-based units).

What users say about Rental Guardian

“I can’t say enough good things about doing business with RentalGuardian and all their staff. Everyone I have dealt with has been very informative, professional, quick to respond and very friendly. The level of service is impeccable! Highly recommended!” — Lisa, Cabo Villas

5. Generali

Generali vacation rental damage protection comes from the global insurance company of the same name. Its vacation rental insurance solution focuses purely on damage protection for accidental damage caused by a guest during a stay.

Best for: Hosts, owners, or property managers who are looking for damage protection rather than comprehensive insurance coverage.

What users say about Generali

“My phone representative was super and deserves a 5-star rating or the highest you can get. She was very nice and patient in helping me understand the terms and getting me into the best coverage for the money.” — Charles B, US

6. American Family

Insurance giant American Family offers innovative insurance plans for owners who only rent their properties out during certain seasons or own second homes rented out on a short-term basis. 

Coverage from American Family goes on top of one’s homeowner or landlord policy, protecting your home’s contents up to certain limits. American Family also provides optional plans for covering itemized personal property and hidden water damage. The company prides itself on its flexibility and attention to security detail.

Best for: Managers who only rent out their properties during certain seasons, especially summer, or those who own a second home exclusively for short-term rentals.

Safely: Vacation rental insurance that actually works

It stands to reason that the insurance company that’s best adapted to your business needs is specialized in short-term rental solutions—but you’ll still need a clear understanding of what features most apply to your specific circumstances.

At Safely, we pride ourselves on offering comprehensive insurance with a claims process that’s simple to understand, and a team that’s experienced and supportive—whether you’re dealing with a serious accident like a guest breaking their leg on a wobbly step, or a small issue like a stained carpet.

FAQs about the best vacation rental insurance

What kind of insurance do I need for a vacation rental?

A vacation rental needs specialized insurance that’s tailored to your operations—homeowners insurance doesn’t normally cover properties being used for commercial purposes. Make sure that your policy covers property contents and belongings, structural damage, accidents and intentional damage, theft, bodily harm, and income protection if an issue leads to downtime. Good insurance companies will also offer guest screening.

What kind of insurance should I get for my Airbnb?

Airbnb says that it offers $1,000,000 in coverage in case of damage or injury via its Host Protection program, but even admits itself that this doesn’t amount to a proper insurance policy. That’s why your Airbnb needs a comprehensive cover that will pay out in the event of contents or building damage, accidents, or theft. The best vacation rental insurance companies, such as Safely, understand you need a policy that is tailored to Airbnb rental homes, and will pay out in days to enable you to get back to business fast.

How much does Vrbo rental insurance cost?

Vrbo properties need comprehensive vacation rental insurance with a specialist company like Safely to ensure that all eventualities—from contents or building damage, guest injury, negligence, or accidents—are covered. The amount you pay for your insurance will vary depending on factors such as location, the size of the property, how often you rent it, and the amount of coverage you need.