The Ultimate Guide to Listing on Vrbo (2026)

Last updated: November 2025‍

Understanding your insurance options is key to protecting your investment and running a successful Vrbo business. This guide breaks down what insurance Vrbo provides, what it doesn’t cover, and how you can ensure your property is fully protected.

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What insurance does Vrbo provide for hosts?

Vrbo automatically includes a $1M liability insurance program for all stays booked through its platform at no extra cost. This policy is designed to protect you if you are found legally responsible for an accident during a guest's stay.However, it's crucial to understand that this is liability coverage, not property insurance. It primarily covers accidents involving your guests, not damage to your own property.

Vrbo's $1M liability insurance program

This policy provides primary coverage for certain liability claims, meaning it applies first before your own homeowner's policy.What it typically covers:

• Traveller injury: If a guest is injured at your property
• Third-party property damage: If a guest damages a neighbor’s property

What it does not cover:

• Damage to your own property or belongings caused by a guest
• Loss of rental income due to property damage
• Theft of your personal property
• Damage caused by things like mold or pollution

Important note: This coverage only applies to reservations booked online through Vrbo's checkout system.

Is Vrbo's included insurance enough?

For most hosts, Vrbo's liability insurance is a valuable benefit, but it is not a complete substitute for a dedicated vacation rental insurance policy. Relying solely on Vrbo’s policy and your standard homeowner's insurance leaves significant gaps in your coverage.

• Your homeowner's policy isn't enough: Most standard homeowner's insurance policies have a "business exclusion" clause. This means they will not cover claims related to commercial activities, like renting your home to paying guests.
• Landlord policies fall short: A landlord policy is designed for long-term tenants, not the high turnover of short-term vacation rentals, and often won't provide adequate coverage.

What kind of additional insurance should hosts consider?

To fully protect your investment, you need a specialized vacation rental insurance policy. This type of policy is built specifically for the unique risks of hosting short-term guests.A comprehensive vacation rental policy typically replaces your homeowner's policy and bundles all the necessary coverage into one plan.

Key vacation rental insurance coverage to look for:

• Commercial property: Covers your building, its contents, and other structures on your property
• Commercial liability: Protects you from claims of guest injury
• Loss of income: Reimburses you for lost rental revenue if your property is uninhabitable due to a covered claim
• Damage by guests: Covers damage to your home and its contents caused by a guest

Key takeaways for Vrbo hosts

• Vrbo provides liability insurance, not property insurance. It protects you if a guest is injured but won’t pay to repair your home if a guest damages it.
• Your homeowner's policy likely won't cover your rental business. Always check your policy for a business exclusion clause.
• Get specialized coverage. A dedicated vacation rental insurance policy offers the most complete protection for your property, income, and liability.
• Check local laws. Some cities or states have mandatory insurance requirements for short-term rentals.

Ultimately, the best course of action is to thoroughly evaluate your unique situation and risk tolerance. Consulting with an insurance professional can also provide insights tailored to your specific needs.

Don't see the form to download our rental agreement template? Click here.