THE SUMMER HOST’S GUIDE TO INSURING YOUR ADU OR SHORT-TERM RENTAL
Summer is here, and with it comes a surge in travel and short-term stays. For homeowners with accessory dwelling units (ADUs) or vacation rentals, it’s the perfect season to welcome guests and earn extra income. But before you open your doors to travelers, it’s important to make sure your property—and your peace of mind—are fully protected. Whether you’re listing your space on Airbnb, through a trusted realtor, or hosting independently, having the right insurance coverage in place is key.
MIND THE COVERAGE GAP
Standard homeowners insurance typically isn’t designed to cover short-term rentals. Once you start renting out a property—whether it’s an ADU, a vacation home, or just a spare room—it’s considered a business activity. That shift usually requires additional or specialized insurance to make sure you’re fully protected. Consider looking into a short-term rental endorsement, or consider a landlord or commercial policy, depending on how frequently you rent and whether the space is detached.
Wondering what classifies as a short-term rental? Insurance carriers consider any rental term less than one year to be “short term.” This means that even if you’re planning to rent our property out for all of summer or most of the year, you’ll still want to make sure you have an endorsement for a short-term rental since a typical landlord policy likely won’t apply.
COVER YOUR BASES
With guests coming and going, the chance of accidents—like slips, falls, or property damage—increases. Make sure your policy includes adequate liability coverage to protect you in case someone gets hurt on your property or causes damage that extends beyond your space.
BOOKED AND BACKED
A solid short-term rental policy can cover things like stolen or damaged property, as well as lost rental income if your space becomes uninhabitable due to a covered event (like a fire, major plumbing issue, or storm damage). These policies are designed to keep your rental business running, even when the unexpected happens. Without proper coverage, you could be left footing the bill for repairs—and missing out on valuable booking revenue. From broken appliances to guests who leave more than just a mess, it’s smart to make sure both your belongings and your bottom line are protected.
Short-term rentals can be a great way to boost your income during the summer months—but don’t leave your investment vulnerable. Taking time to review your insurance now means fewer headaches later if something goes wrong. If you're not sure where your current coverage stands, The Weiser Agency team is here to help.