Renting out a Michigan property through Airbnb or Vrbo can generate additional income, but it also introduces insurance risks. Before welcoming guests, property owners should understand how short-term rental insurance in Michigan differs from traditional homeowners coverage.
Platform protection can help, but it may not replace a dedicated insurance policy.
Does Homeowners Insurance Cover Short-Term Rentals?
Standard homeowners insurance is generally designed for personal residential use. When a property is regularly rented to paying guests, certain claims may be excluded or coverage may be limited.
For example, guest-related property damage, liability claims, or lost rental income might not be covered under a traditional homeowners policy.
Hosts should notify their insurance provider before beginning short-term rental operations.
Airbnb and Vrbo Protection: What’s Included?
Airbnb offers AirCover for Hosts, which includes host damage protection and liability insurance, subject to its terms and exclusions.
Vrbo offers liability protection for eligible bookings, but hosts should not assume that every type of property damage or financial loss is included.
These programs have different conditions and should not be treated as substitutes for comprehensive property insurance.
Landlord Insurance vs. Short-Term Rental Insurance
A traditional landlord policy generally covers properties rented to longer-term tenants. However, frequent guest turnover and vacation rental activities may require different coverage.
Dedicated short-term rental insurance may offer protection for:
- Damage to buildings, furnishings, and appliances
- Liability involving paying guests
- Theft or vandalism, subject to policy terms
- Lost rental income following a covered loss
- Certain risks associated with frequent guest turnover
Coverage varies by insurer, and some properties may qualify for specialized endorsements rather than standalone policies.
What Michigan Hosts Should Review
Before listing a property, review its insurance coverage, occupancy requirements, rental frequency, and any applicable local regulations.
Also consider whether the property is your primary residence, a seasonal cottage, or a dedicated investment property. These differences can affect eligibility and coverage.
Explore Short-Term Rental Insurance With E&Y Insurance
E&Y Insurance Agency, LLC helps Michigan property owners compare insurance options for their rental activities.
Whether you occasionally rent out your home or operate a vacation rental year-round, reviewing your protection before a claim can help avoid costly surprises.
Call E&Y Insurance at (248) 362-1313 to discuss coverage options for your Michigan short-term rental property.
