Does Landlord Insurance Cover Short-Term Holiday Rentals?

Standard landlord insurance usually excludes short‑term rentals such as Airbnb or Stayz guests, so the policy will not pay for damage or liability that arises from a holiday let unless you have purchased a specific endorsement; many insurers offer a rider that extends property and public liability cover for occasional lets, but the rider often caps the payout and may require proof of guest screening. If your lease forbids subletting, the insurer may void the whole policy, and claims related to guest injuries, stolen belongings, or fire damage caused during an Airbnb stay are routinely denied (as we covered above in the 'why standard insurance often skips holiday lets' section).

To be sure, read the 'short‑term rental exclusions' clause, ask the insurer whether a rider is needed, and compare the extra premium against the risk of a denied claim before you list the property, which we explore further in the next section on spotting exclusions.

Standard landlord insurance often skips holiday lets because insurers categorize them as commercial activity rather than ordinary residential use. Commercial classification triggers higher loss frequency, so policies either raise premiums dramatically or drop the coverage altogether.

Short‑term rentals generate rapid guest turnover, increased foot traffic, and a greater chance of accidental damage or theft. Those risk vectors clash with the low‑frequency, low‑severity model many insurers use for long‑term tenancy policies. As we covered above, Airbnb and Stayz bookings fall outside the definition of a typical tenant.

Consequently, most standard policies embed a holiday‑let exclusion clause that voids claims once the property is listed on a short‑term platform. Scanning your declaration page for wording such as 'no short‑term rental' or 'commercial use prohibited' will reveal the gap before a loss occurs. The next section shows how to spot short‑term rental exclusions in your policy.

Standard landlord insurance often excludes any activity billed as short‑term rentals, Airbnb, or Stayz, meaning those rows aren't protected.

1. Lost‑rent exclusion - Policies may refuse to replace income when the property is booked as a holiday let, even if vacancy is caused by a guest‑related issue.
2. Guest‑damage exclusion - Damage to furniture, appliances, or décor inflicted by short‑term renters is frequently listed as a non‑covered peril.
3. Liability exclusion - Injuries to guests that occur during a brief stay are commonly omitted from the usual liability umbrella.
4. Criminal‑act exclusion - Theft or vandalism committed by a guest often falls outside coverage, as insurers label it a criminal act rather than an accidental loss.
5. Zoning‑or‑code exclusion - Converting a long‑term dwelling into a temporary holiday let may breach local regulations, and resulting fines or remediation costs are typically not payable.

These gaps set the stage for the five risks explored next.

Skipping full‑cover insurance leaves short‑term rentals exposed to five major risks. Standard landlord policies rarely protect against these scenarios, as we noted earlier.

• Guest‑caused property damage that exceeds landlord policy limits, leaving repair costs out‑of‑pocket.
• Forced shutdown after a claim, resulting in lost rental income while repairs are completed.
• Guest injuries in common areas that generate liability claims not covered by typical landlord policies.
• Theft or vandalism classified as a 'business' loss, prompting insurers to deny reimbursement.
• Deposit‑related disputes that trigger legal fees because the policy lacks rental‑specific endorsement.

Standard landlord policies cap building coverage at the property's insured value, not at an unlimited amount; a $350,000 home, for example, receives up to $350,000 in replacement‑cost protection. Liability protection typically begins at $100,000 and can be lifted to $300,000 with an extra rider, but the policy does not magically jump to $1 million.

Personal‑property coverage applies only to items the landlord actually owns, often limited to $5,000‑$10,000 for furnishings or equipment left on site. Loss‑of‑rent protection usually offers a fixed payout - around $5,000‑$10,000 per month - rather than a percentage of annual rent, providing a predictable safety net if a short‑term booking is cancelled because of damage (Landlord insurance basics explained).

Adding an occasional‑let endorsement reshapes those numbers. Liability may be boosted to $500,000‑$1 million, but the increase requires a paid add‑on and is not included by default. The endorsement often raises loss‑of‑rent limits to $8,000‑$12,000 monthly, reflecting higher turnover typical of holiday lets. Some carriers also permit a modest guest‑contents clause - up to $15,000 - for personal items guests bring, while the building's replacement‑cost ceiling remains tied to the original insured value.

Short‑term rental hosts slash expenses by catching policy blind‑spots before they bite. Spotting exclusion clauses, matching coverage limits to the occasional‑lets threshold, and tailoring endorsements keep premiums from ballooning.

• Scan the declarations page for 'short‑term rental' or 'holiday let' language; if absent, request a rider rather than buying a separate policy.
• Compare the insurer's 'under 30 days per year' rule with your booking calendar; thresholds differ by carrier and jurisdiction, so verify the exact limit with an agent.
• Bundle landlord and contents cover to unlock multi‑policy discounts that often exceed the cost of a stand‑alone short‑term rental add‑on.
• Document risk‑mitigation steps - smoke alarms, first‑aid kits, guest screening - to qualify for loss‑prevention credits many insurers offer.
• Review claim histories in the 'risks without full cover' section; avoiding uncovered perils prevents costly out‑of‑pocket payouts.

By tightening language, staying within the occasional‑lets allowance, and leveraging discounts tied to safety measures, hosts protect profit margins without sacrificing protection. The next segment shows how a flooded kitchen can still wreck finances when coverage gaps go unnoticed.

A flood caused by a guest in a short-term rental kitchen typically falls outside the scope of a standard landlord insurance policy; most policies label the incident as tenant‑originated water damage and deny coverage. Adding a dedicated short‑term rental endorsement or a separate holiday lets policy is the only reliable way to shift the repair bill and lost‑rental income away from the host's pocket.

When water damage occurs, submit a claim to the insurer describing the cause, attach photos, and include the guest's personal liability details if they have any. If the primary policy excludes the loss, the host must absorb costs or negotiate reimbursement with the guest. This scenario underscores why the next section on liability nightmares from weekend visitors matters for every Airbnb or Stayz host.

Standard landlord insurance typically leaves weekend guests uninsured, so any injury or third‑party claim during a short‑term rental can become the host's financial nightmare.

• Guest slips on a wet kitchen floor and sues for medical expenses.
• Loud party triggers neighbor complaints that escalate into property‑damage lawsuits.
• Unattended grill ignites a fire, damaging the building and other units.
• Pet bites a visitor, generating a liability claim.
• Child wanders onto a balcony and falls, prompting a costly personal‑injury suit.
• Liability gap persists unless the policy includes a short‑term rental endorsement; otherwise the claim is denied (see short‑term rental liability coverage guide).

Stayz hosts often see claims denied for predictable reasons, meaning the episode offers a crash course in what not to do. The most common lesson is that standard landlord insurance rarely covers the unique perils of short‑term rentals, so relying on it alone invites rejection.

Typical missteps include: listing the property as a 'vacant dwelling' while renting it out daily, which creates an exclusion clash; omitting a guest‑damage endorsement and then filing for broken furniture; failing to document the condition before each booking, leaving proof gaps; ignoring the policy's '24‑hour notice' clause and reporting a kitchen flood after the deadline; and assuming liability limits match those of Airbnb or other platforms, only to discover a shortfall when a guest sues.

Hosts who suffered these pitfalls learned to upgrade to a dedicated short‑term rental policy, keep thorough check‑in photos, and file timely notices, thereby turning a denied claim into a covered incident.

Switching to a dedicated short‑term rental policy fills the gaps that landlord insurance typically leaves open, such as guest‑caused damage, liability for accidental injuries, and lost earnings when a property is temporarily uninhabitable. The extra cover aligns with the risks highlighted in the previous 'liability nightmares' section, ensuring peace of mind during high‑turnover bookings.

Start by gathering quotes from insurers that specialize in holiday lets; request a policy sheet that lists per‑booking limits, deductible options, and exclusions. Once a suitable plan is identified, add it as a rider to the existing landlord policy or replace the old policy entirely, then confirm the effective date with the provider. For a quick side‑by‑side comparison, see how short‑term rental insurance stacks up against standard landlord coverage.