Short-term rental insurance is a specialized type of insurance designed to protect property owners who rent their homes or apartments for brief periods, typically less than 30 days. This insurance covers risks associated with short-term rentals, such as liability for guest injuries, property damage, and loss of rental income.

Short-term rental insurance typically works by providing liability coverage and property damage protection for hosts who rent out their property on a short-term basis, such as through Airbnb or VRBO. This type of insurance can help protect hosts from financial losses that may result from guest injuries or damage to the property during their stay. Short-term rental insurance policies can vary in their coverage, but they typically provide liability coverage for bodily injury or property damage, as well as property damage protection for damage to the host's property caused by guests. Some policies may also provide coverage for lost rental income if the property becomes unusable due to damage or other covered events. It's important for hosts to carefully review their policy to understand what is covered and any limitations or exclusions that may apply.

The cost of short-term rental insurance varies based on several factors, including the property's location, its value, coverage limits, and the type of coverage selected. On average, premiums range from $1,500 to $4,000 annually, but this can increase depending on specific circumstances.

While short-term rental insurance is not legally mandated, many property management companies and rental platforms like Airbnb or Vrbo recommend or require it. Additionally, some local regulations may stipulate that property owners carry certain types of coverage.