Top 5 Scenarios That Lead to Liability Claims in Short-Term Rentals
Opening your home to travelers can be a rewarding and profitable experience. But when things go wrong, they can go very wrong—especially when liability is involved. Whether it’s a guest slipping on wet stairs or a dog bite incident, liability claims in short-term rentals are among the most expensive and stressful issues vacation rental owners can face.
Understanding these risks is the first step toward protecting your property, your income, and your peace of mind. In this post, we’ll explore the top 5 scenarios that most commonly lead to liability claims in short-term rentals, and how to avoid becoming a cautionary tale.
Why Liability Matters for Short-Term Rental Owners
As a host, you’re responsible for providing a reasonably safe environment for your guests. If someone is injured or experiences a loss on your property due to negligence—or even a perceived hazard—you could be held legally liable. That’s where short-term rental insurance comes in, but not all policies are created equal.
Let’s look at the most common situations that result in liability claims—and how you can prevent them from disrupting your rental business.
1. Slip-and-Fall Accidents
Slip-and-fall claims top the list of liability claims in short-term rentals. These accidents often occur because of wet floors, loose rugs, uneven stairs, or icy walkways.
Common causes:
- Wet tiles in bathrooms or kitchens
- Poor outdoor lighting at entryways
- Loose railings or steps
- Slippery decks or porches
How to prevent it:
- Install non-slip mats in bathrooms and kitchens
- Secure all rugs and carpets
- Ensure exterior walkways and steps are well-lit and in good repair
- Provide salt or sand for icy conditions during winter months
Pro tip from Safely: Perform regular maintenance checks and document them. If a claim arises, having records of inspections can support your case.
2. Injuries from Pools, Hot Tubs, or Amenities
While amenities like pools and hot tubs can boost your booking appeal, they also increase liability risk—especially if children are involved.
Common causes:
- Lack of safety barriers around pools
- Broken or missing pool covers
- Unattended children in or near water
- Slippery surfaces surrounding the pool or spa
How to prevent it:
- Install proper fencing and lockable gates
- Include detailed safety instructions in your guest welcome guide
- Clearly mark depth indicators and “no diving” zones
- Post signage reminding guests of risks and rules
Did you know? Some vacation rental homeowners insurance policies won’t cover liability related to pools or hot tubs unless specific safety features are in place. Make sure to review your coverage.
3. Dog Bites and Pet-Related Incidents
Allowing pets can broaden your audience, but it also opens the door to liability issues, especially if a dog bites another guest, neighbor, or delivery person.
Common causes:
- Aggressive or unsupervised pets
- Guests breaking house rules around pet behavior
- Lack of proper pet screening
How to prevent it:
- Set clear pet policies in your house rules and rental agreement
- Limit the size or breed of pets allowed
- Require pets to be leashed when outside
- Use guest screening tools to identify risky behavior patterns
Note: Not all short-term rental insurance policies cover pet-related liability. If you allow pets, verify that your policy includes this protection.
4. Fire Hazards and Burns
Fires can cause catastrophic damage—not to mention major liability concerns. Whether it’s a grill, fireplace, or faulty appliance, if your guest is injured or your neighbor’s property is affected, you could be on the hook.
Common causes:
- Faulty electrical wiring
- Unattended candles or fireplaces
- Grill misuse
- Cooking-related accidents
How to prevent it:
- Provide clear safety instructions for all heating elements
- Install and regularly test smoke detectors and fire extinguishers
- Prohibit open flames and include it in house rules
- Provide safe grill placement away from structures and flammable materials
Pro tip: Document all safety measures with photos and logs. If a claim arises, you’ll want to show you took reasonable precautions.
5. Third-Party Injuries on Your Property
Not every liability claim comes from your paying guests. Delivery drivers, cleaners, neighbors, and even trespassers can potentially file a claim if they’re injured on your property.
Common causes:
- Tripping on uneven pathways
- Injuries from falling branches or debris
- Dog bites or slip hazards during service visits
How to prevent it:
- Keep outdoor areas clean and clear of debris
- Schedule routine landscaping to manage overgrowth or hazardous trees
- Verify your cleaners and contractors carry their own liability coverage
- Post warning signs for potential hazards like low clearance or uneven ground
Guest screening won’t prevent third-party claims, but having clear protocols for access and service visits can minimize your risk.
How to Protect Yourself from Liability Claims
Mitigating liability risks is about more than just fixing loose tiles. It requires a comprehensive approach to property management, communication, and coverage.
Invest in Proper Short-Term Rental Insurance
Make sure your policy includes liability coverage tailored for vacation rentals, pet-related incident protection (if you allow pets), coverage for amenities like pools or hot tubs, and business interruption protection in case of temporary closures.
Use Guest Screening Services
Partner with services like Safely to screen guests for red flags like past property damage, criminal behavior, or other liability risks.
Set Clear House Rules and Communicate Expectations
Use your booking confirmation and welcome materials to outline safety rules, amenity use instructions, emergency procedures, and pet and occupancy policies.
Regularly Inspect and Maintain Your Property
Don’t wait for a guest to report a hazard. Schedule seasonal inspections and routine maintenance for all areas of your rental—inside and out.
Liability claims in short-term rentals can be expensive, time-consuming, and damaging to your reputation. But with the right preparation, policies, and insurance, you can avoid most of the common pitfalls that lead to these claims.
At Safely, we help vacation rental homeowners take the guesswork out of protection. From short-term rental insurance and guest screening to support with travel insurance and property management best practices, we’re here to help you host with confidence. Explore our resources at Safely and see how our solutions can help you avoid liability pitfalls and protect your short-term rental investment—before trouble strikes.
