Turning your property into a short-term rental is a popular way to generate income. Whether it’s your primary residence during ski season or a basement suite listed on Airbnb, short-term hosting is more common than ever in Utah. In fact, Salt Lake City recently ranked 6th on the list of cities in the United States with the most Airbnb rentals.
But many homeowners overlook one key consideration: Does your insurance policy fully cover you?
The answer is often no. Standard homeowners insurance isn’t designed for income-generating rentals, and you could be left exposed without landlord or short-term rental insurance in place.
What’s the Difference Between Homeowners and Landlord Insurance?
Homeowners insurance is designed for owner-occupied homes, meaning you live there full-time. Once you rent out all or part of your home, the situation changes.
Salt Lake City landlord insurance (sometimes called rental property insurance) typically includes:
- Property Damage Coverage: Protects the structure from damage caused by fire, wind, vandalism, and more.
- Liability Coverage: Covers you if a guest is injured on the property and decides to sue.
- Loss of Rental Income: Helps recoup income if a covered loss makes the property uninhabitable.
For short-term rentals, the challenge is that the guests change frequently, and insurers often see this as a higher risk than a long-term tenant.
Why Airbnb’s Coverage Isn’t Enough
Airbnb offers a “Host Guarantee” and “Host Protection Insurance,” but these are not comprehensive policies.
They’re limited in scope and may not cover:
- Intentional damage
- Liability claims not reported promptly
- Lost income due to cancellation
- Damage to shared or common areas
If you rely solely on Airbnb’s protections, you could be responsible for thousands of dollars in repairs or legal costs if something goes wrong.
Steer Clear of These Insurance Gaps
A standard landlord policy may not automatically cover short-term stays. Many insurers require a special endorsement or policy for vacation rentals or frequent turnover. If you’re renting out more than a few weekends per year, your provider may require full landlord or commercial coverage.
Even renting out a room a few times a year can blur the lines of your existing policy. It’s best to be clear and upfront with your insurer to avoid denied claims later.
Protecting Yourself While Hosting
To stay protected:
- Talk to your insurer: Explain how often you rent, how much of the home is used, and whether it’s your primary residence.
- Consider a rider or separate policy: Depending on the frequency of rentals, you may need a short-term rental endorsement or standalone landlord insurance.
- Review liability limits: Make sure your policy covers injuries, accidents, or property damage caused by guests.
Final Thoughts
Short-term rentals can be a smart way to earn income, but they come with risks that homeowners insurance doesn’t always cover. Whether you’re a casual host or a frequent Airbnb provider, landlord insurance—or a tailored rental endorsement—can help protect your property, income, and peace of mind.
Contact the friendly team at Salt Lake City Insurance today so we can make sure you have the precise coverage you need.
