Short-term rentals are common across California — from in-town Airbnbs to cabins and foothill properties on VRBO. What many hosts don't realize until it's too late: a standard homeowners policy usually doesn't cover a property once it's being rented out short-term.

The Coverage Gap Most Hosts Miss

Standard homeowners and even landlord policies typically exclude business or commercial activity — and short-term rental hosting is generally treated as exactly that. If a guest is injured on the property, damages it, or a fire starts during a booking, a standard policy can deny the claim entirely if the insurer wasn't told the property was being rented out. Airbnb's and VRBO's host protection programs help, but they have real limits and are not a substitute for a dedicated policy.

What Short-Term Rental Insurance Typically Covers

• Liability protection if a guest is injured on the property
• Property damage caused by guests, whether accidental or otherwise
• Theft of furnishings or belongings provided for guest use
• Lost booking income after a covered loss takes the property offline
• Coverage that applies both during bookings and the gaps between them

California-Specific Considerations

Many short-term rentals in California sit on acreage, near the foothills, or in areas with meaningful wildfire exposure — which can affect which carriers are willing to write a policy and what it costs. If your STR is also your primary residence part of the year, that adds another layer worth sorting out with an agent rather than guessing.

Frequently Asked Questions