The best short-term rental insurance in 2026 — and the policy your client should never close without

The single most expensive mistake an STR investor makes is assuming a homeowner's policy covers a rental. It doesn't — and the day a guest gets hurt is the wrong time to learn that. For most investor clients in 2026, the provider to recommend is Proper Insurance, the STR-specific gold standard that covers Airbnb, Vrbo, and direct bookings under one policy. Steadily is the value pick for landlord-style coverage with loss of rent, and Obie is the fast, low-cost option for a straightforward single property.

If you advise a client to close on an STR without confirming a true short-term-rental policy is in place, you're exposing them — and your reputation. Here's the guidance to give them.

Affiliate disclosure: VaultSTR may earn a commission when a client opens a policy through some partners listed here. It never changes our rankings. See methodology below.

Our pick

Best overall STR insurance: Proper Insurance. Purpose-built for short-term rentals, it covers all booking channels under one policy, places no limit on guest-caused damage, and adds STR-specific protections most carriers won't touch. Expect roughly $1,500-$4,000/year depending on property size, location, and limits.

How we evaluated STR insurance

We graded providers on the coverage that matters when a claim actually lands.

1. STR-specific coverage. Does the policy explicitly cover short-term rental use, or is it a landlord policy with an STR rider bolted on? Commercial-grade STR coverage is the standard to hold.
2. Liability limits. Guest injuries are the catastrophic risk. We favored providers with $1M+ commercial liability.
3. Guest-caused damage. Theft, parties, and trashed units happen. We rated how each provider handles contents and damage.
4. Loss of income. If a covered event takes the unit offline, does the policy replace the lost bookings?
5. All-channel coverage. A single policy that covers Airbnb, Vrbo, and direct bookings beats juggling platform-specific guarantees.
6. Cost and availability. Price relative to coverage, and whether the provider writes in your client's state.

The providers

Proper Insurance — best overall

Proper Insurance is widely considered the gold standard for short-term rental coverage. Its policies are designed specifically for STRs and cover Airbnb, Vrbo, and direct bookings under a single policy. It places no limit on guest-caused damage, administers claims in-house, and offers industry-first coverages like bed bug and squatter protection. Cost typically runs $1,500-$4,000/year depending on location, size, and limits.

• Best for: Serious investors who want comprehensive, no-gaps STR coverage.
• Starting price: ~$1,500-$4,000/year.
• Pros: True STR-specific policy; covers all booking channels; no cap on guest damage; in-house claims; specialty coverages.
• Cons: Higher premium than a basic landlord policy; comprehensive coverage your client must actually understand to value.
• When to skip it: A part-time host renting a few weekends a year may be over-insured here.
• What to tell your client: "This is the policy that lets you sleep at night. It covers every way you take a booking and doesn't cap guest damage — that's the coverage your liability exposure actually requires."

Steadily — best value for landlord-style coverage

Steadily covers vacation rentals and specializes in landlord coverage like loss of rent and dwelling protection. STR policies typically run $2,000-$3,000/year. It's a strong middle ground for investors who want solid dwelling and income protection without the top-tier premium.

• Best for: Buy-and-hold investors who prioritize dwelling and loss-of-rent coverage.
• Starting price: ~$2,000-$3,000/year.
• Pros: Strong landlord-style protections; loss of rent included; fast quotes; writes in most states.
• Cons: Less STR-specialized than Proper on guest-liability edge cases.
• When to skip it: A high-volume, high-liability property where Proper's STR-specific protections earn their premium.
• What to tell your client: "If your priority is protecting the asset and your rental income, Steadily covers that well at a lower premium than the top specialist."

Obie — best for fast, low-cost single-property coverage

Obie is a tech-forward broker specializing in landlord and rental policies, available in all 50 states, with pricing from around $40/month. It protects against fire, wind, and water damage and is built for speed — useful when your client needs proof of coverage to close.

• Best for: A single straightforward property where speed and cost matter.
• Starting price: From ~$40/month.
• Pros: Fast online quotes; nationwide; low entry cost; good for closing timelines.
• Cons: Broker model; confirm STR use is explicitly covered, not just landlord use.
• When to skip it: Complex portfolios or high-liability properties that need a dedicated STR policy.
• What to tell your client: "If we need proof of coverage to close this week, Obie is fast and affordable — just confirm the policy names short-term rental use explicitly before you bind it."

Safely and Allstate — worth a quote

Safely offers STR-focused coverage and guest screening and is worth a comparison quote. Allstate offers STR options with nationwide availability, though its HostAdvantage STR program is limited to select states. Get either in writing next to Proper before recommending — and confirm STR use is explicitly covered.

What to make sure your client understands

Three things separate an agent who looks like an advisor from one who looks like a salesperson on this topic.

First, a homeowner's or standard landlord policy is not STR coverage. Most exclude commercial/short-term rental use, and a denied claim after a guest injury can be financially ruinous. Your client needs a policy that names short-term rental use explicitly.

Second, platform "host guarantees" are not insurance. Airbnb's AirCover and similar programs are limited, secondary, and full of exclusions. They're a backstop, not a policy. Tell your client to carry their own.

Third, match the policy to the use. A full-time, high-occupancy STR needs commercial-grade liability and all-channel coverage (Proper). A part-time host might be fine with a lighter landlord-plus-STR policy (Obie, Steadily). Right-sizing the policy is the advice that builds trust.

The bottom line

Recommend Proper as the default for any serious STR investor — it's the most complete coverage and removes the gaps that sink claims. Point value-focused, buy-and-hold clients to Steadily, and use Obie when speed and cost drive the decision. Whatever they choose, make them confirm one thing in writing: the policy explicitly covers short-term rental use. That single sentence is the difference between a covered claim and a catastrophe.

FAQ

Does my client's homeowner's policy cover an Airbnb?

Almost never. Most exclude short-term/commercial rental use. Your client needs a dedicated STR policy.

Is Airbnb's AirCover enough?

No. It's a limited, secondary backstop with exclusions — not a substitute for a real policy. Clients should carry their own coverage.

How much does STR insurance cost in 2026?

Roughly $1,500-$4,000/year for comprehensive coverage (Proper), $2,000-$3,000 for landlord-style (Steadily), or from ~$40/month for a basic single-property policy (Obie).

What liability limit should my client carry?

For most STRs, $1M+ commercial liability is the standard given guest-injury exposure. Confirm limits with the provider.

Can one policy cover Airbnb, Vrbo, and direct bookings?

Yes — Proper covers all booking channels under a single policy, which is simpler and safer than relying on platform-specific guarantees.

This article is editorial and informational, not insurance or legal advice. Coverage, pricing, and availability vary by property, state, and carrier — confirm all terms directly with the provider. Last updated June 16, 2026.