Airbnb Insurance Cost in 2025: How Much Is Vacation Rental Insurance?

Running a vacation rental isn’t just about fresh linens and great reviews—it’s also about being prepared when things go sideways. As travel continues to surge post-pandemic, Airbnb hosts are welcoming more guests than ever, and with that comes a growing number of unexpected incidents—from broken furniture to more serious liability claims. The reality is, accidents happen. Sometimes it’s a spilled drink on the carpet; other times it’s a guest injury that leads to a legal headache. And while Airbnb offers some built-in coverage, it doesn’t cover everything. That’s why having the right insurance matters in 2025 more than ever.

Below, we’ll break down what Airbnb’s insurance includes, where it falls short, and what hosts can do to truly protect their property and peace of mind.

What Airbnb Host Insurance Includes (2025 Update)

Airbnb still offers built-in coverage for all hosts under its AirCover for Hosts program—and yes, the $1 million in liability insurance is still part of the package in 2025. This policy helps protect you if a guest (or someone they bring) gets hurt at your place or causes damage to someone else’s property during their stay.

AirCover also includes Host Damage Protection, which covers things like damage to your home, furnishings, or belongings caused by guests, plus protection against unexpected clean-up costs and lost income if you have to cancel future bookings due to guest-related damage.

But here’s the catch: AirCover doesn’t cover everything. It won’t protect you from intentional damage, wear and tear, or liability claims unrelated to a guest’s stay. It’s a solid safety net—but not a full insurance solution. That’s where third-party policies come in, which we’ll get into shortly.

Host Damage Protection: What’s Covered

Airbnb’s Host Damage Protection, part of its broader AirCover for Hosts program, offers up to $3 million in coverage—and yes, as of 2025, that amount hasn’t changed. This protection kicks in when a guest damages your property, whether it’s your furniture, appliances, or even belongings like artwork or electronics. It also covers damage to shared spaces, like apartment lobbies or condo hallways, as well as guest theft (yes, even that’s covered).

How Much Airbnb Host Insurance Costs in 2025

Airbnb continues to offer its Host Liability Insurance and Host Damage Protection at no additional cost to hosts. However, many hosts opt for supplemental short-term rental insurance to bridge coverage gaps and ensure comprehensive protection.

In 2025, the cost of third-party short-term rental insurance varies based on several factors:

• Property Size and Location: Larger properties or those in high-risk areas may incur higher premiums.
• Claims History: A history of frequent claims can lead to increased insurance costs.
• Type of Rental: Entire home rentals typically have higher premiums compared to shared spaces.
• Coverage Level: Comprehensive policies covering property, liability, and income loss are more expensive than basic liability-only plans.

For example, Obie offers short-term rental insurance policies that typically range from $1,000 to $2,500 annually for an average-sized home, depending on location, property type, and coverage level.

Investing in the right insurance ensures that hosts are protected against unforeseen events, providing peace of mind in the dynamic world of short-term rentals.

How Airbnb’s Insurance Works

If something goes wrong during a guest’s stay, Airbnb’s insurance is designed to step in—but you’ll need to know how to work the system. In 2025, filing a claim is still a pretty straightforward process. You start by logging into your Airbnb account and heading to the Resolution Center. From there, you can submit a Host liability or damage claim by filling out the form with details like the reservation code, what happened, and supporting photos or receipts. Claims can be submitted by the host or the guest.

Once submitted, Airbnb passes the claim to a third-party administrator (usually a licensed insurance carrier), who assigns an adjuster to handle it. Hosts typically hear back within a few days, though complex cases can take a few weeks. Recent host experiences suggest that response times have improved, but documentation is key—be clear, thorough, and quick to respond.

What Airbnb Insurance Doesn’t Cover (and Why You Need More)

Airbnb’s insurance is a solid starting point—but it’s not a safety net for everything. One big gap? Intentional damage. If a guest throws a party and trashes your place on purpose, don’t expect full coverage. The same goes for high-value items like artwork, collectibles, or pricey electronics—they might not be fully protected, if at all.

There’s also limited protection when it comes to risky activities (think hot tubs, pools, or certain property features), and if someone files a personal liability claim that falls outside Airbnb’s scope, you could be left on the hook.

That’s why many hosts opt for customized short-term rental insurance. Depending on whether you rent a room, an entire home, or multiple properties, the right policy can fill in the gaps—and give you peace of mind that Airbnb alone just can’t provide.

Best Airbnb Host Insurance Alternatives in 2025

Choosing the right insurance for your Airbnb property is crucial in 2025. While Airbnb's AirCover provides some protection, many hosts seek additional coverage to safeguard against potential risks. Here are some of the top insurance providers tailored for short-term rental hosts:

1. Obie – Comprehensive Coverage for STR Hosts

Obie offers specialized short-term rental insurance that covers property damage, liability, and loss of income. Their policies are designed specifically for Airbnb and similar platforms, ensuring hosts have the protection they need.

2. Proper Insurance – Endorsed by Vrbo

Proper Insurance provides comprehensive coverage for short-term rentals, including property, liability, and income protection. As Vrbo's exclusive insurance partner, they offer policies that cater to the unique needs of vacation rental owners.

3. Safely – Focused on Guest Screening and Protection

Safely combines insurance coverage with guest screening services. Their policies include up to $1,000,000 in coverage for injury and property damage, aiming to protect hosts from potential guest-related incidents.

4. Allstate HostAdvantage – Established Insurer with Airbnb Endorsements

Allstate's HostAdvantage program offers protection for hosts renting out their homes. Their policies cover personal property damage and liability, providing an added layer of security for Airbnb hosts.

Remember:

When selecting an insurance provider, consider factors like coverage limits, policy exclusions, and the specific needs of your rental property. It's essential to ensure that your chosen policy complements Airbnb's AirCover and provides comprehensive protection for your hosting activities.

For a detailed comparison of these providers, including coverage specifics and pricing, refer to the comprehensive guide linked below.

Final Thoughts: Protecting Your Vacation Rental Business

Airbnb’s free coverage is a solid starting point—but it’s not the full picture. Host liability and damage protection help cover some common issues, but there are real gaps that could leave you exposed. That’s why smart hosts layer on third-party insurance for full peace of mind. 

Whether it’s a guest injury, unexpected property damage, or lost income, having a dedicated short-term rental policy ensures you're covered from all angles. Think of it like this: Airbnb handles the basics, but a tailored policy fills in the blanks. Companies like Obie make it easy to get a quote that fits your property and risk level. 

Want extra protection without the stress? Get an instant quote from Obie and make sure your rental business is ready for whatever 2025 throws your way.