Owning a vacation rental in San Diego can be highly profitable, especially with the city’s thriving tourism industry. But along with the opportunities come risks. Short-term tenants often move in and out quickly, and while most guests are respectful, there’s always the chance of property damage, accidents, or liability concerns. That’s why many vacation rental owners ask: Do I really need insurance for short-term tenants? The answer is yes, insurance is one of the best ways to protect your property, your income, and your peace of mind.
Why Standard Homeowners Insurance Isn’t Enough
A common misconception is that a regular homeowners' policy will cover rental activity. Unfortunately, most policies exclude short-term rentals, leaving owners vulnerable if a tenant causes damage or if a guest gets injured on the property. Without the right insurance in place, you may be personally responsible for costly repairs, medical bills, or even lawsuits.
Types of Insurance Vacation Rental Owners Should Consider
1. Vacation Rental Insurance
Vacation rental insurance is specifically designed to cover short-term stays. It typically includes coverage for property damage, liability, and even lost income if your rental property becomes uninhabitable due to a covered event.
2. Liability Insurance
Short-term tenants bring more foot traffic into your home, increasing the risk of accidents. Liability insurance protects you if a renter or their guest gets injured while staying at your property.
3. Rent Guarantee Insurance
If a tenant cancels at the last minute or refuses to pay, rent guarantee insurance can help cover lost rental income. This type of protection is especially useful during peak travel seasons when losing even a week’s worth of bookings can significantly impact your bottom line.
4. Landlord Insurance Add-Ons
If you already own landlord insurance, check if your policy covers short-term rentals. Some providers allow you to add short-term coverage or extend protections for temporary housing arrangements.
Protect Your Investment with Penny Realty
Insurance for short-term tenants isn’t just an option; it’s an essential part of protecting your vacation rental investment. At Penny Realty, we help San Diego property owners safeguard their income, manage risks, and streamline operations with expert property management solutions.
Contact us today to learn how we can support your vacation rental business with full-service management.
FAQs About Insurance for Short-Term Tenants
1. Is vacation rental insurance required by law in San Diego?
No, but it is highly recommended. While not required under state laws, some booking platforms and local laws may mandate certain coverage for liability or property protection.
2. What does rent guarantee insurance cover?
It typically covers lost rental income if a short-term tenant cancels, refuses to pay, or defaults on their rental agreement.
3. Can I rely on the booking platform’s insurance instead?
Platforms like Airbnb or VRBO may provide limited host protection, but they often don’t cover everything. Vacation rental insurance gives you more comprehensive coverage.
4. How do I know if my landlord insurance includes short-term tenants?
Check with your insurance provider. Many standard landlord policies exclude vacation rentals, but add-ons may be available.
5. Should I work with a property manager to handle insurance needs?
Yes. Property managers can recommend reliable insurance providers, ensure your lease agreement aligns with coverage requirements, and handle claims if issues arise.
