Saying “Rental” Doesn’t Make It Short-Term Rental Insurance: The Fine Print Between Landlord and STR Insurance Policies

This article is presented by Proper Insurance. You bought a short-term rental, told your insurance agent what you were doing at the property, and they sold you a policy. You paid for insurance. But the real question is, what does it cover? Insurance has a reputation for hiding things in the fine print. That reputation is mostly unfair, as an insurance policy is a contract, and everything it will and will not do at the time of a claim is explained. Nothing is hidden. You just have to know how to look for it. And the hard part is that many of the words on the policy overview page are familiar enough that they don’t feel like they need translating. “Rental” feels broad enough to cover any kind of renting. “Premises liability” reads like enough coverage for a guest injury. “Loss of rents” sounds like the income you stand to lose. And “vacancy” sounds like the gap between peak seasons. Every one of these words is more limited in definition than it reads at a glance because they’re exact on the insurance policy. The contract told you everything upfront. That means it’s on you to understand it. You signed the policy contract. If it doesn’t work the way you expected, you’re the one who pay...