Homeowners FAQs

What does short-term rental insurance cover that my homeowners policy does not?

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Quick answer: STR insurance covers short-term rental activity that standard homeowners and landlord policies exclude.

A standard homeowners policy is built for a home you occupy, not one you rent to paying guests. The moment you list your Georgia home on Airbnb, VRBO, or any short-term rental platform, you are operating a business from that property. Most homeowners policies contain a business-activity exclusion that can void coverage entirely once commercial rental income begins.

Why does a standard homeowners policy not cover short-term rentals?

Homeowners policies are designed around owner-occupied residential use. When a property earns rental income, insurers classify it as a business activity. The business-activity exclusion in most homeowners contracts means that injuries, property damage, and losses connected to a paying guest may be denied at claim time. The policy did not price for that risk, so the contract removes it.

For example, a guest slips on an icy step at your Atlanta rental and files a bodily injury claim. Your homeowners insurer may deny the claim because the injury happened during a commercial activity. A short-term rental policy is built to respond to that exact scenario.

What does short-term rental insurance cover that homeowners insurance does not?

Short-term rental policies address the gaps created by the business-activity exclusion. Common coverage areas include:

  • Commercial liability for guest injuries. Pays bodily injury claims filed by guests when your homeowners policy would deny them due to business use.
  • Guest-caused property damage. Covers intentional or accidental damage a guest does to furniture, appliances, or the structure, including theft by a guest. How an insurer calculates what they pay on a property claim depends on whether the policy uses replacement cost or actual cash value.
  • Lost rental income. If a fire or water loss makes your property uninhabitable, a short-term rental policy can reimburse the rental income lost while repairs are underway. Standard homeowners policies do not include this for income-generating rentals. This protection works similarly to the loss of use coverage on a primary home policy, applied to rental revenue rather than your own temporary living expenses.
  • Vandalism during a rental period. Damage during an active guest stay often falls outside standard homeowners coverage because of the business-use exclusion.
  • Third-party property damage. If a guest damages a neighbor's fence or vehicle, short-term rental liability coverage responds where a homeowners policy would not.

Does Airbnb's host protection replace a standalone insurance policy?

Platform host-guarantee programs like Airbnb's AirCover offer some damage protection, but they are not licensed insurance policies. They include claims caps, exclusions, and dispute processes that differ significantly from a regulated insurance contract. For example, a guest damage claim that Airbnb denies under its own terms leaves you without a backup if your homeowners policy also excludes the loss due to business use. A standalone short-term rental policy is the only instrument that functions as actual insurance with Georgia's regulatory protections in place. To understand what distinguishes licensed insurers from other financial protection programs, see our page on admitted vs. non-admitted carriers.

Does Georgia require short-term rental insurance?

Georgia does not mandate a specific short-term rental insurance product at the state level, though individual municipalities may impose requirements as part of their local STR permitting process. A homeowners policy alone leaves the host exposed to uncovered liability and property losses the moment rental income is accepted. Local city and county ordinances may add insurance minimums tied to an STR permit; confirming those requirements before listing a property prevents coverage gaps.

How is coverage level determined for a short-term rental?

Coverage structures vary across insurers and depend on how many nights per year the property rents, whether the home is owner-occupied or a standalone rental, the value of furnishings and equipment, and the revenue the property generates. The declarations page on a short-term rental policy will list the covered property, liability limits, and any add-ons for items like outdoor equipment or electronics. For more on what a policy review covers, see what a free coverage review involves. A licensed advisor can review your rental setup and confirm which policy type fits your property. Schedule a coverage review to see where your current homeowners policy stops and where short-term rental coverage begins.