Whether you’re a snowbird who rents your home out periodically or a rental homeowner who rents out the property for an extended time, you need vacation rental insurance. We reviewed over a dozen insurers using our proprietary rubric and determined the five best short-term rental insurance companies:
- Foremost Insurance: Best overall for vacation rental insurance
- Obie: Best for short-term rentals
- CBIZ: Best for homes with amenities like a pool
- American Family: Best for renting out a vacation house
- Safely: Best for guest screening or property management
Best Vacation Rental Insurance Companies Compared
Company | Quote Process | Policy Purchase Process | Accessibility | Additional Services | Financial Rating |
|---|---|---|---|---|---|
 | Through an agent | Through an agent | 24/7 call center | App for policy and claims services | A (Excellent) |
 | Online or over the phone | Online or over the phone | Monday to Thursday, 9 a.m. to midnight Eastern time Friday, 9 a.m. to 11 p.m. ET | Risk map to help with purchasing a property | A+ (Superior) |
 | Start online and finish over the phone | Through an agent | Monday to Friday, 8 a.m. to 5 p.m. Central time | Property management resources | A+ (Superior) |
 | Through an agent | Through an agent | 24/7 call center | Online policy services | A (Excellent) |
 | Online or over the phone | Online or over the phone | Monday to Friday, 9 a.m. to 5 p.m. ET | Guest screening | A (Excellent) |
Foremost Insurance: Overall Best for Vacation Rental Insurance
Pros
- App to help with managing your policy
- No cap on the frequency of rentals
- Appetite for insuring mobile homes
Cons
- Quotes handled solely by agents and not online
- Commercial property not available in Florida
- No way to determine estimated costs for policy
Why we picked it: Foremost offers an overwhelming number of endorsements and coverage options for a rental property. Some insurers on this list specialize in one or the other, but both are possible with Foremost. Additionally, as one of the only true carriers on this list, Foremost Insurance can handle all claims directly on your behalf.
Standout Features
- Flexibility to switch between landlord and vacant home insurance with the addition of a vacant home endorsement
- No primary residency requirement for seasonal home insurance
- Customizable endorsements for your property with options for replacement, extended replacement, or repair costs coverage
- Multiple types of dwellings can be insured
Financial Stability
Foremost has been around since 1952 and has decades of experience as a specialty home insurer. Farmers Insurance purchased Foremost in 1999. Because it is now a part of Farmers Insurance, Foremost has been given a solid financial rating of A (Excellent) by AM Best.
Alternative Provider
If you’re interested in a faster turnaround time for quotes, check out Obie. Its quick online quoting system helps you find insurance for your property in just minutes.
To obtain a quote, you will need to speak directly with an agent.
Foremost offers a landlord policy for your vacation or short-term rental needs. If you want to insure a second home, the carrier also offers a seasonal policy that does not have a primary residence requirement.
For vacation rentals, check out the landlord and vacation rental policy. Whether you rent out your home rarely or every other weekend, the policy has no cap on the frequency of rentals. The only stipulation is that the property cannot be rented to the same tenant for more than five consecutive months. The same coverage is available if you are an individual homeowner or a small business limited liability company (LLC).
There are two options for the landlord policy: named peril or comprehensive coverage. Both have a wide range of endorsements to make the policy entirely flexible for your specific needs.
Customer service is available when you need it, with 24/7 claims support. The provider’s complaints are also lower than the national average for homeowners’ claims.
Conveniently, Foremost has flexibility with claims settlement. The landlord policy can be structured as an agreed loss value for your home if it is a total loss, or an actual cash value if your claim is for a partial loss.
Also, Foremost has multiple discounts available. For example, if you screen your tenants, then you may be eligible for a discount.
Obie: Best for Short-term Rental Insurance
Pros
- Policyholders save an average of 25% with Obie policies
- Available in all 50 states
- Get a quote and purchase a policy online
Cons
- Does not maintain a 24/7 call center for claims or customer service
- Claims are not handled directly by Obie
- Limited information available on partner providers
Why we picked it: Shopping for insurance can be time-consuming, but Obie has simplified the process by making it very fast and affordable to find short-term rental insurance.
Standout Features
- Offers insurance for landlords, real estate investors, and short-term rentals
- No paperwork required to finalize a quote or purchase the policy online
- All quotes contain property and liability coverage and come with options to fit your business needs
- Add-on coverage options for inflation guard, flooding, and emergencies
Financial Stability
Obie partners with different carriers like Accelerant Specialty Insurance Company and American National Lloyds Insurance Company. Both have an AM Best rating of A- or higher.
Alternative Provider
As a broker, Obie doesn’t handle claims directly or provide 24/7 claims services. If you would like to work with a provider that offers both of these features, check out Foremost Insurance.
In a few minutes (at most), we received one quote with three tiers of coverage:
- Basic costs $898 annually and included building coverage, $5,000 in business personal property, $18,000 in loss of rent with $500,000 per occurrence, and $1 million total in general liability coverage. It also had 3% inflation guard coverage.
- Complete costs $1,114 annually and had the same coverages as the Basic option—except the general liability limit increased to $1 million per occurrence and $2 million aggregate and the inflation guard rate increased to 6%. It also had some additional coverages, like $25,000 in water backup.
- Premium is Obie’s top-tier coverage and costs $1,200 annually. It had the same coverages as above but with increased limits, like $10,000 for business personal property and $50,000 for water backup. It also included 9% for inflation guard.
Each tier is customizable, giving you total control over the level of coverage you purchase for the property. After customizing the option to fit you best, you can then purchase the policy online.
Obie is a newer rental insurance company. It was founded in 2017 but has expanded rapidly and has over $4 billion in property insured in all 50 states. Its customers seem to be happy with the service they have received. Nearly 500 reviews have been posted online for Obie, which has an average rating of 4.9 out of 5 on Google.[1]
You can easily manage your Obie policy through your online account. If you have questions about the policy or billing or need to file a claim, you can email or call. Obie is only available during the weekdays.
CBIZ: Best for Homes With Amenities
Pros
- Oldest provider for short-term rental insurance
- Broad appetite for different property types
- One policy for home and rental
Cons
- No mobile app
- Cannot purchase policy or get a quote online
- Doesn’t directly handle claims
Why we picked it: What makes CBIZ stand out for short-term rentals is its willingness to provide coverage for a home with riskier amenities. Many insurers will not provide coverage if your home has a pool, but CBIZ provides coverage for all amenities, from pools and docks to nonmotorized watercraft.
Standout Features
- Policy has high limits for liability insurance and an appetite for riskier features, like a home pool or hot tub
- CBIZ is available for all types of properties and classifications: a primary residence, second home, vacant home, or condo can all be insured under its rental insurance program
- Coverage for different rental frequencies, including for long-term tenants who stay six months or longer
- Personal property coverage is included: if you own multiple properties or one with a lot of exercise equipment, CBIZ will provide coverage
Financial Stability
CBIZ works with various insurance companies, all rated A+ (Superior) by AM Best, so you can rest assured that your policy has the financial security needed to support loss payments.
Alternative Provider
CBIZ helps place you with other carriers to find insurance. If you’d prefer to deal directly with a provider as your sole point of contact, consider Foremost Insurance.
To obtain a quote, you will need to fill out an online application, and then an agent will contact you.
CBIZ’s vacation rental insurance policy can replace your dwelling or landlord policy and serve as one policy for the property. Its policy offers a mixture of dwelling coverage with a commercial general liability policy with a $2 million aggregate limit.
The policy also has a loss of income built into its standard coverage. You can even add bed bug cleanup as an endorsement with no deductible.
The type of property you insure with CBIZ is not an issue as the company has a broad appetite for different structures. Townhomes, single-family residences, condos, and duplexes are all covered
For convenience, CBIZ’s website offers a quick and easy system for quoting your vacation rental insurance. Answer a few specific questions and get a quote immediately.
You can contact the provider directly if an issue arises. Helpfully, CBIZ lists the contact information for all of the carriers it works with on the contact section of its website.
American Family: Best for Renting Out Your Home
Pros
- 24/7 claim services
- Independent agents
- In-house claims
Cons
- Cannot combine multiple homes under one policy
- No loss protection
- Quotes only available through agents
Why we picked it: American Family’s policy for short-term rental insurance for up to 62 days is a great option for those who own a home but are away for extended periods. A particular demographic for this type of insurance would be snowbirds who split time between two residences and would like to be able to rent one out while they are away at the other home.
Standout Features
- Diminishing deductible of $100 a year up to policy maximum
- Burglary and theft coverage available
- Rental terms are ideal for snowbirds looking for passive income
- Option to insure a second home as a vacation home with rental coverage
Financial Stability
Financially, American Family has the solvency you want in your insurance company. It has an A (Excellent) rating from AM Best.
Alternative Provider
The company does not offer online quotes. If you are a real estate investor seeking quotes online, then Obie is a great option.
Quotes are available only through American Family agents.
In the FAQ section of its website, the provider states the cost of insurance can range from $2,000 to $3,000 annually. It also provides discounts for certain upgrades you make, such as installing a smart home security system.
Two policies are available for your vacation rental needs:
- Second home insurance: This coverage is ideal for a home you use as an occasional family getaway.
- Short-term rental insurance: This policy is an endorsement to a standard homeowner’s policy that allows you to rent your home for up to 62 days a year. American Family has no problem with frequently renting the house out through Vrbo, Airbnb, or similar businesses—though any period beyond 62 days is not covered. This policy is excellent for snowbirds who leave their home for up to two months a year. Additionally, many retirees are on a fixed income, making the diminishing deductible a nice incentive to check out the provider.
The provider offers a 24/7 claims reporting line, or you can file a claim online. Online, you can also manage your policy and pay your premium.
American Family has multiple ways to save on insurance too. These include bundling an auto policy and generational discounts.
Safely: Best for Guest Screening & Property Management
Pros
- Get a quote and purchase a policy online
- Exclusions are easily accessible and easy to review
- Only pay when you need coverage
Cons
- Safely does not offer a 24/7 call center
- Limits offered for contents are low
- No app to manage policy or claims
Why we picked it: Because of Safely’s unique business model, it is a great option if you want an insurer who will partner with your existing homeowner’s policy. Safely provides free guest screening and flexible policy terms to accommodate rental schedules.
Standout Features
- Safely has a partnership with Escapia, which draws on data from over 75 different vacation service providers. Drawing on this data, Safely maintains a database of guests who have caused damage before, and it also runs public record searches to identify guests with a criminal past.
- Only pay for Safely when you have a reservation—coverage is provided only for the days when the renter is in your home.
- Whether you’re renting a spare room, a duplex, or a single-family home, Safely will offer coverage.
Financial Stability
Safely is underwritten by Voyager Indemnity Insurance, which has an AM Best rating of A (Excellent).
Alternative Provider
Safely partners with other carriers to offer policies. If you want a dedicated provider offering rental insurance while you rent your home, check out American Family’s policy.
To get a quote, provide your information and a representative will reach out to you.
Safely’s policy provides coverage in three different areas:
- Dwelling: up to $1 million
- Contents: up to $10,000
- Bodily injury: $1 million
There is no lost income or endorsements. Safely also has a broad range of coverage for structures.
Get an instant quote and purchase your policy through Safely’s website without having to talk to an agent. You also can submit a claim and manage your policy through its online portal.
The company has a streamlined claims process. Not only can you file a claim online, but the turnaround time from reporting a claim to receiving payment is under four days.
How We Evaluated the Best Short-term Rental Insurance Companies
To determine which insurance company is best for you, we utilized a proprietary evaluation system developed in-house. We reviewed over a dozen of the best vacation rental insurance companies and presented the five with the highest scores.
In evaluating insurance companies, we focused on the customer’s needs. We paid particular interest to convenience, financial ratings (from AM Best), customer service, types of policies offered, and the overall experience as a policyholder for a specific provider.
Frequently Asked Questions (FAQs)
Anyone who rents their home out for others to use needs vacation rental insurance. Vacation rental insurance protects your property and assets from liability, while also helping with lost rental income expenses. It covers gaps of coverage that your homeowners insurance will not.
The difference between the two coverages is the amount of time the property is rented. Some carriers require rental for a certain period of time or will place a limit on how often a home is rented out.
Expect to pay between $1,700 to nearly $3,000 annually for vacation rental insurance. Policies can cost more or less depending on the size, location, and amenities of the home. Vacation rental insurance usually costs 10% to 20% more than a homeowners policy.
Bottom Line
If you rent out your home or have a second one you rent out regularly, you will want to ensure you have vacation rental insurance. We understand how important it is that your home and its memories are protected, which is why we have evaluated the best short-term rental insurance companies for you. Foremost Insurance is our overall best vacation rental insurance company.
Consumer review sources:
[1]Obie | Google Reviews
