The 5 Best Vacation Rental Insurance Companies
Nathan Weller is an Insurance Expert focusing on insurance for small business. He has 15 years experience in insurance operations, FNOL, and claims handling.
Whether you’re a snowbird or rent your home out periodically, you need vacation rental insurance. We reviewed over a dozen insurance providers using our evaluation of financial stability, convenience, customer satisfaction, and product offered and determined the five best providers for short-term rental insurance.
- Foremost Insurance: Best overall
- Allstate: Best for a primary residence
- CBIZ: Best for homes with amenities
- American Family: Best for snowbirds
- Safely: Best for partnering with your homeowners policy
Top Short-term Rental Insurers Compared
Company | Online Quote | Accessibility | Additional Services | Financial Rating |
|---|---|---|---|---|
 | Yes | 24/7 call center | Yes, online policy services | A |
 | Yes | 24/7 call center | Yes, online policy services | A+ |
 | Yes | 24/7 call center | None | A+ |
 | No, agent only | 24/7 call center | Yes, app for policy services | A |
 | Yes | Monday-Friday, 9 a.m. to 5 p.m. Eastern time | Yes, guest screening | A |
Foremost Insurance: Best Overall for Vacation Rental Insurance
Overall Score:
4.00 / 5
What We Like
- Specialty insurer
- Experience insuring homes
- No cap on rentals
- Owned by Farmers
What's Missing
- Cannot be your primary residence
Deciding Factors
- Daily rentals: Allowed
- Vacant home: Endorsement available
- Settlement methods: Multiple options for settling claims
- Customizable: Several endorsement options to fit your needs
Foremost Insurance scored 4.0 out of 5 because of its flexible policy options, customer service, and strong financial rating. Because of the convenience of using its service and the policies it offers, Foremost is the best carrier overall for your short-term rental needs.
Cost & Coverage
To obtain a quote from Foremost Insurance, you will need to speak directly with an agent.
Foremost offers a landlord policy for your vacation or short-term rental needs. They also offer a seasonal policy if you want to insure a second home. Whether you rent your home out rarely or rent it out every other weekend, there is no cap on the frequency of rentals with Foremost. The same coverage is available if you are an individual homeowner or a small business LLC.
There are two options for the landlord policy: named peril or comprehensive coverage and along with both are a wide range of endorsements to make the policy entirely flexible for your specific needs.
The policy flexibility also extends to Foremost’s settlement of claims. Their policy can be structured as an agreed loss value for your home if it is a total loss and actual cash value if your claim is for a partial loss. There are also options for replacement, extended replacement, or repair costs.
Customer Satisfaction and Convenience
Customer service is available when you need it, with 24/7 claims support and an app to help you manage your policy anytime. Foremost’s complaints are also lower than the national average for homeowners’ claims.
Financial Rating
Foremost has been around since 1952 and has decades of experience as a specialty home insurer. Farmer’s purchased Foremost in 1999. Because they are part of Farmer’s, Foremost has the solid financial backing of a national carrier. Foremost has a robust financial rating of A by AM Best.
Allstate: Best for Primary Residence
Overall Score:
3.75 / 5
What We Like
- Superior financial rating
- App for policyholders
- In-house claims
- Low complaints
What's Missing
- Unclear what states are covered
Deciding Factors
- Affordable: Homesharing endorsement
- Great customer service: Online reps are easy to reach
- Condo or Home: Policy available for either structure
- Bundling: Personal or commercial policies available
Allstate received a 3.75 out of 5 because of its excellent customer service and convenience. It’s one of the first major carriers to allow homesharing as an endorsement to your regular homeowner’s policy. Homesharing is when you rent your home using a third-party service, such as Airbnb. The home can remain your primary residence, even if you rent it out regularly to others. Allstate is best for short-term rental insurance for your primary residence.
Cost & Coverage
It only costs $50 a year to add HostAdvantage® to your existing policy. This coverage is only available as an add-on to your existing homeowner’s policy, so you will need to either be or become a customer of Allstate.
Allstate HostAdvantage® provides coverage for damage to or theft of your personal belongings when renting your home to others. The policy provides up to $10,000 in coverage per rental period. The liability coverage is whatever your current homeowner liability limit is, so if you go with Allstate, you will want to consider raising the limit of liability on your policy. However, they do not provide for loss of income should a guest cancel at the last minute.
HostAdvantage® has an exciting perk: $25 off your first four weekly or bi-weekly cleanings using Merry Maids.
Customer Satisfaction and Convenience
When it comes to consumer experience, Allstate offers top-rate services. They have an app you can use to manage your documents, pay and review your bills, and dive into what coverages your policy carries. Their app will also let you review your digital identity to see if your data has been a part of any data breaches.
If you are not an app fan, Allstate has an online portal called ePolicy, which gives you access to all your policy documents and payments right from a computer.
Also, Allstate provides services you would expect, such as a 24/7 call center, in-house claims, and the ability to obtain a quote and purchase a policy online. When going through their quote process, if you have any questions about the coverage, you can chat with a sales agent who can review your quote in real-time.
Financial Rating
Allstate has the financial security of an A+ rating from AM Best. This rating is what you would expect from a company that is just shy of the century mark.
CBIZ: Best for Homes With Amenities
Overall Score:
3.50 / 5
What We Like
- Superior financial rating
- Experience in homesharing
- Broad appetite for property types
- 24/7 claims
What's Missing
- No app available
Deciding Factors
- High limits: On liability
- Largest insurer: Vacation rental properties
- Amenities: Pool, hot tub, and more
- Exclusions: Provided during quote
CBIZ scored 3.5 out of 5 on the strength of its scores in customer satisfaction and convenience. Many insurers won’t provide coverage if your home has a pool, but CBIZ provides coverage for all amenities, from pools to docks and even nonmotorized watercraft. CBIZ is the best vacation rental insurance provider on homes with amenities.
Cost & Coverage
To obtain a quote from CBIZ, you will need to fill out an online application, and an agent will contact you.
The vacation rental insurance policy they offer can replace your dwelling or landlord policy and serve as one policy for the property. Their policy offers a mixture of dwelling with a commercial general liability policy with 2 million aggregate limits.
They also offer a wide range of coverage for rental frequency, including long-term tenants of six months or longer. If you own multiple properties or one with a lot of exercise equipment, CBIZ will provide coverage. The policy also has a loss of income built into the standard coverage. If you want, you can add bed bug clean-up as an endorsement with no deductible.
The type of property you insure with CBIZ is not an issue as they have a broad appetite for different structures. Townhomes, single-family residences, condos, and duplexes are all covered. Reach out to CBIZ to experience the great customer service they offer.
Customer Satisfaction and Convenience
For convenience, their website offers a quick and easy system for quoting and purchasing your vacation rental insurance. Answer a few specific questions, and a quote is available immediately. CBIZ is there for you when you need it, providing 24/7 claims services. Not only are they there for you, but customers have agreed their service is excellent by filing fewer complaints than the national average.
Financial Rating
CBIZ works with various insurance companies, all rated A+ by AM Best, so you can rest assured that your policy has the financial security needed to support loss payments.
American Family: Best for Snowbirds
Overall Score:
4.00 / 5
What We Like
- 24/7 services
- In-house claims
- App
- Independent agents
What's Missing
- Cannot combine multiple homes under one policy
- No loss income protection
Deciding Factors
- Options: For types of policies
- Diminishing deductible: $100 a year up to policy max
- Burglary and theft: Both covered
- Homesharing: Not a coverage issue
American Family scored 4 out of 5 in our evaluation because of its customer satisfaction and the policies it offers. Its policy for short-term rental insurance for up to 62 days makes it the best provider for snowbirds looking for coverage.
Cost & Coverage
Quotes are available only through American Family agents.
Two policies are available for your vacation rental needs. The first is second home insurance. If you own a home that is an occasional family getaway, this is the policy you would want to consider.
The other policy is short-term rental insurance, an endorsement of their standard homeowner’s policy. Under this policy, you can 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.
Any length of time beyond 62 days is not covered. This policy is excellent for snowbirds who leave their home for up to two months a year. Many retirees are on a fixed income, making the diminishing deductible a nice incentive to check out American Family.
Customer Satisfaction and Convenience
American Family is an established carrier, providing insurance since 1927. Over the years, they have developed a strong customer service reputation, ranking #1 in J.D. Power’s customer satisfaction survey for their auto insurance product.
There are multiple ways to contact the provider to make changes to your policy, file a claim or make a payment. You can call, use the app, or go online.
Financial Rating
Financially, American Family has the solvency you want in your insurance company. They have received an Excellent A rating from AM Best. They have also recently expanded their presence across America by purchasing Main Street America Group.
Safely: Best for Partnering With Your Homeowners
Overall Score:
3.50 / 5
What We Like
- Available nationwide
- Short claim life
- Quick quotes
- Online policy purchase
What's Missing
- Low limit for contents
Deciding Factors
- Guest Screening: Helps protect your property
- Exclusions: Easily accessible for review
- Sync: With your rental booking system
- Only Pay: When you need it
Safely insurance received a score of 3.5 out of 5 on the strength of its convenience and additional services. Because of its unique business model, Safely company is best for someone looking for a provider who will partner with its existing homeowner’s policy.
Cost & Coverage
A Safely premium short-term rental policy is $18.99 a night.
Safely’s policy provides coverage in three different areas. Coverage is up to $1 million for the dwelling, $10,000 for your contents, and $ 1 million for bodily injury. There is no lost income or endorsements.
Safely has a broad range of coverage for structures. Whether it is a spare room or a duplex, or a single-family home, they will provide coverage. Visit Safely’s website to see the convenience of working with them.
Customer Satisfaction and Convenience
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 their online portal.
They also have streamlined the claim process. Not only can you file a claim online, but the turnaround time from reporting a claim to being paid is under four days.
Safely also provides two services that make its product convenient for the policyholder. The first is a guest screening service which they provide free of charge. They have a database of guests who have caused damage before. They also run public record searches to identify guests with a criminal past.
The other service is how their policy itself works. You only pay for Safely when you have a reservation, and they provide coverage only for the days when the renter is in your home. They can easily integrate their product into most property management systems so that your coverage becomes active when a guest makes a reservation.
Financial Rating
Safely is underwritten by Voyager Indemnity Insurance. They have an A rating from AM Best.
Methodology: How We Evaluated
To determine which insurance companies would be the best for you, we utilized a proprietary evaluation system developed in-house. We reviewed over a dozen insurance providers and have presented the five with the highest scores. In evaluating insurance companies, we have focused on the customer’s needs. We paid particular interest to convenience, financial ratings (AM Best), customer service, types of policies offered, and the overall experience as a policyholder for a specific provider. Most people only care about insurance when they need it, and we wanted to ensure that what we’re recommending is something that, should that moment come, you’ll feel comfortable with your purchase.
Bottom Line
If you rent out your home or have a second one you rent out regularly, you’ll want to ensure you have vacation rental insurance. We understand how important it’s that your home and its memories are protected, which is why we have researched the best short-term rental providers for you. Foremost Insurance is the best overall provider for vacation rental insurance.
