Renting out your property on sites like Airbnb or Vrbo has become a popular way to earn extra income. But short term rentals come with unique risks that your homeowners or landlord policy may not cover. That’s why getting tailored short term rental insurance is key to protecting your investment.
In this guide, we’ll explain what short term rental insurance is, what it covers, and why Foremost is a top choice for comprehensive, customizable policies. Read on to learn what to look for in short term rental coverage so you can rent with confidence.
What is Short Term Rental Insurance?
Short term rental insurance provides liability and property damage protection for units rented out on a temporary basis, Policies can cover
- Primary homes
- Second homes
- Investment properties
- Cabins
- Condos
- Apartments
It’s designed for rentals less than 12 months, as opposed to a long term tenant. Coverage adapts homeowners insurance to the exposures of this emerging market.
What Does Short Term Rental Insurance Cover?
A good short term rental policy includes:
Property damage – Pays to repair or rebuild your unit if it’s damaged by covered causes like fire, storms, theft, and vandalism.
Liability – Covers injuries that occur to a guest on your property for which you’re legally responsible.
Loss of income – Reimburses you for lost rental income if the unit is uninhabitable after a covered loss.
Contents – Replaces furnishings damaged or stolen by a guest. Excludes valuables which require scheduld coverage.
Electronics – Repairs or replaces electronics like smart home devices, TVs, tablets, and game consoles.
Appliances – Pays to repair or replace appliances like refrigerators, microwaves, washers and dryers.
Rekeying – Covers the cost to rekey locks if a guest fails to return their keys.
The best policies also offer additional coverages to customize your protection.
Why Choose Foremost for Short Term Rental Insurance?
With over 60 years of experience, Foremost offers specialized products for unique needs. Their short term rental insurance provides:
Flexible packages – Choose named peril or open peril to build the right policy.
Primary home coverage – Insure your primary residence without a long term tenant exclusion.
Valuable features – Loss of rental income, electronics, and rekeying automatically included.
Bundled savings – Discounts when you insure other properties with Foremost.
Convenient billing – Schedule policies on one easy payment plan.
Exceptional service – Get quotes in minutes and talk to a knowledgeable agent.
Renter prescreening credits – Save up to 15% when you screen guests before renting.
Broad eligibility – Insure single family homes, condos, apartments, cabins, and more.
With concierge-level service and policies tailored for short term rentals, Foremost stands out as a top choice for owners.
What to Look for in a Short Term Rental Policy
Here are key factors to look for when choosing short term rental insurance:
-
Intended for short term rentals – Avoid policies that exclude short term rental use. Look for carriers that specialize in it.
-
Sufficient liability limits – Experts recommend $500,000 minimum to protect assets. Umbrella coverage also helps boost limits.
-
Replacement cost settlement – Provides full reimbursement to rebuild without depreciation deductions.
-
Professional liability – Covers claims alleging financial injury, like a guest disputing a refund policy.
-
Gap coverage – Fills gaps between primary homeowners policy limits and the higher short term rental needs.
-
Worldwide coverage – Protects you wherever your property is located.
Finding an insurance partner experienced with short term properties ensures you get the right protections.
Foremost Policy Options
Foremost provides different packages to choose from:
Named Peril Coverage
Covers specifically listed causes of loss like fire, lightning, wind, and theft. Provides basic protections at an economy price.
Open Peril Coverage
Broader coverage for all risks except those specifically excluded. Gives more complete protections but at a higher premium.
Bundles
Add liability, contents, loss of use, and other options to customize your policy. Bundling increases savings.
Foremost’s wide range of endorsements means you can dial coverage up or down to meet your exact short term rental needs.
Making a Claim with Foremost
Foremost strives to make claims fast and hassle-free:
-
24/7 claims service – Report losses any time online or by phone.
-
Direct repair program – Pre-approved contractors expedite repairs to your property.
-
Replacement cost – Receive brand new materials without depreciation deductions.
-
One adjuster – A single point of contact walks you through the process start to finish.
Foremost also offers handy features like online claims tracking and direct deposit of payments into your bank account. Rest assured you’ll be back up and renting again quickly.
Why Short Term Rental Owners Need Specialized Coverage
A typical homeowners or landlord policy won’t properly cover short term rental exposures:
- Higher liability risks with frequent occupants
- Increased likelihood of property damage
- Susceptibility of contents to theft and vandalism
- Loss of rental income if a guest damages the property
Without complete short term rental insurance, you could end up paying costly claims out of pocket. The right policy from Foremost or another specialty provider protects your property and income.
Work With an Agent to Find the Best Policy
Because short term rental insurance is still a newer product, policy options and availability vary by carrier. That’s why working with an insurance agent is advised to find the right fit.
An agent can shop multiple insurers, answer questions, and guide you through the process. Foremost agents have expertise around property types, local markets, and coverage options.
Provide details on your home, rental activities, and risk profile. An agent will then suggest packages and limits to properly insure your short term rental.
The agent can also advise on risk management steps to make your property more attractive to insurers. Taking prudent measures to minimize hazards decreases your insurance premium.
Get a Customized Foremost Quote for Your Rental
Ready to protect your short term rental? Get a fast, free quote from Foremost in minutes:
-
Visit Foremost.com and enter your zip code.
-
Select Short Term Rental when choosing an insurance type.
-
Provide details on your rental property and coverages desired.
You’ll quickly receive a customized quote reflecting the unique needs of your short term rental.
Focus on Your Guests, Not Insurance Worries
The income potential of short term rentals makes them attractive, but also exposes you to bigger property and liability risks. Specialized short term rental insurance gives you the right solutions.
Foremost makes it easy to get tailored coverage for your specific rental situation. Their flexible policies and premier service provide the comprehensive protection short term owners need.
Learn more about Foremost’s rental insurance packages at Foremost.com today. Then relax knowing your short term property is covered so you can focus on your guests and earning.
Popular optional landlord coverages:
- Loss of rents
- Landlord personal injury
- Other structures
- Service line coverage
- Equipment breakdown coverage
- Replacement cost and extended replacement cost
Get an Online Quote
Online requests will be sent via email within 2-3 business days.
We are unable to provide an online quote for your state. Please visit the agency locator to find an agent in your area.
Landlords want specialized coverage that fits their unique situation. If you own one or more one- to four-family homes that you rent out, you need an insurance company that gives you a lot of different options.
See whatâs covered under a landlord insurance policy from Foremost.
This means that we will pay for “perils” like fire, explosion, lightning, windstorm, and hail damage that are listed in your landlord policy, as long as they don’t go against the terms and conditions of the policy.
This choice covers most sudden, direct, and accidental property losses that aren’t specifically covered by your landlord policy. It does so subject to policy exclusions and conditions. In many states, we offer comprehensive coverage on both the dwelling and other structures, such as a garage.
If you buy a replacement cost policy and an insured event destroys your rental home, the settlement will be the cost to replace the damaged items with new items made of similar materials and quality, with no deductions for wear and tear.
If an insured loss destroys your home, you get the full amount of the agreed-upon limit of insurance for your home, less any deductible from that amount. No hassles.
This gives you protection if you are legally responsible for an accident that hurts someone who doesn’t live in your home or damages someone else’s property.
The insurance can pay to replace or fix your damaged property if your home is destroyed by an insured loss. The amount paid for replacement or repair will depend on the age and condition of your home at the time of the loss.
Foremost Insurance Review: Pros and Cons
FAQ
Does foremost insurance cover short-term rentals?
Who is the parent company of Foremost Insurance?
What is the difference between foremost and farmers insurance?
What types of properties does foremost insure?
Keep in mind that higher deductibles can help lower the cost of your premium. Foremost insures all kinds of rental dwellings. Availability varies by state, but some examples of properties we insure in this program are one-to-four family dwellings, properties rented to students, and vacation and short-term rental properties.
Does safely offer short-term rental insurance?
Safely’s short-term rental policy replaces the current homeowners insurance, as well as coverage for homeowners and their Airbnb guests while they are there. Safely’s policy also offers $1,000,000 of liability coverage for property. What is short-term rental insurance?
What is a foremost ® renters insurance policy?
A Foremost ® renters insurance policy offers choices for tenants. Choose the level of coverage you want for your belongings such as furniture, clothing, electronics and jewelry. Foremost Insurance has policies for tenants in traditional site-built dwellings, condos, apartments and more.
What is short-term rental insurance?
Short-term rental insurance is designed to cover your property and liability exposure while your home is being rented out by guests. For example, if a paying guest injures themselves and sues you, your short-term rental insurance’s liability coverage will help protect you financially.