Introduction

Short‑Term Rental and B&B insurance protects hosts who list entire homes, suites, or rooms on platforms like Airbnb and VRBO, as well as traditional bed‑and‑breakfasts and small inns. The right package combines liability (including innkeepers’ liability for guest property), commercial property, and business interruption for loss of rental income—plus options like cyber and liquor liability. Summit is an independent Canadian brokerage that compares insurers and curates coverage to fit each operation’s risk profile.

Who this page is for

• Individual hosts operating short‑term rentals (condos, secondary suites, vacation homes)

• Professional managers with multiple units or mixed portfolios (STR + long‑term)

• Bed & Breakfasts, boutique inns, and guesthouses

• Real estate investors transitioning from long‑term to STR operations

Core coverages for Short‑Term Rental, Airbnb/VRBO, and B&B

Commercial General Liability (CGL)

Protects against third‑party bodily injury and property damage claims (e.g., guest slip‑and‑fall, damage to a neighbor’s property). For B&Bs and inns, this can include innkeepers’ liability—coverage for legal liability relating to loss or damage to guests’ personal property in your care. See Summit’s guide to Commercial General Liability.

Commercial Property

Covers buildings (if owned) and business contents (furnishings, appliances, electronics, linens) against insured perils like fire, theft, or vandalism. For asset‑heavy B&Bs, property limits and valuation (RC vs. ACV) matter. Learn more in Commercial Property Insurance.

Business Interruption (Loss of Rental Income)

Replaces lost rental income and covers extra expense when a covered property loss (e.g., fire, burst pipe) forces you to cancel bookings. Policies include a waiting period and an indemnity period tailored to your re‑build timeline; note common exclusions such as pandemics or government orders. Note: In many hospitality and STR wordings, loss of rent may be labeled as “rental value” or “fair rental value”—coverage that indemnifies you for the income your unit/rooms would have earned had no loss occurred. Confirm the waiting period (e.g., 24–72 hours) and select an indemnity period that matches your rebuild timeline.

Innkeepers’ liability: quick FAQ

• What’s covered? Legal liability for loss of or damage to guest property in your care (e.g., items stored in a luggage room or safe). Availability and limits vary by insurer and may require an endorsement.

• Typical limits and conditions? Packages often include sub‑limits and “reasonable care” conditions; higher limits can usually be scheduled. See Commercial General Liability for details. See Business Interruption Insurance.

Cyber Liability

Booking platforms, smart‑locks, and payment tools create cyber exposure. Cyber insurance helps with incident response, data restoration, business interruption from cyber events, and liability for privacy breaches. See Cyber Insurance.

Liquor Liability (when applicable)

If you serve or provide alcohol (hosted tastings, welcome wine), liquor liability can address third‑party injury/property damage arising from alcohol service.

Equipment Breakdown and Extra Expense

Protects critical systems (e.g., boilers, HVAC) from sudden, accidental breakdown and can fund temporary solutions to keep units rentable.

Airbnb/VRBO platform considerations

• Platform protections are not a substitute for a dedicated policy; exclusions, sub‑limits, and conditions may leave gaps for buildings, loss of rental income, guest property, or reputational harm.

• Many condo bylaws, strata corporations, and lenders require proof of appropriate commercial or STR‑specific coverage.

• Contracts/house rules help manage risk but do not replace insurance.

Typical claims scenarios

• Guest injury on icy steps (CGL)

• Grease fire damages kitchen; months of repairs follow (Property + Business Interruption for loss of rental income)

• Water leak from an upper unit damages furnishings (Property)

• Stolen guest belongings alleged to be in your safekeeping (innkeepers’ liability component of CGL)

• Phishing compromise of booking credentials and guest data (Cyber)

Cost drivers and underwriting factors

• Location, construction, fire protection, and rebuild cost

• Number of units/rooms, occupancy rate, average daily rate (ADR), annual revenue

• Amenities and risk features (hot tub, pool, waterfront, wood‑burning stove)

• Security measures (smart‑locks, video at entrances, disclosure practices)

• Claims history, maintenance logs, guest screening/house rules

• For B&Bs/inns: food service, events, and any alcohol service

Information to have ready for a quote

• Address(es), year built/updates, construction, square footage, replacement cost

• Ownership/tenancy status; strata/condo requirements where applicable

• Unit/room count, occupancy %, ADR, annual gross rental income, seasonality

• Amenities and risk controls (detectors, extinguishers, railings, anti‑slip, lock systems)

• Past 5‑year claims

• For B&Bs/inns: food service details, liquor service, staff count, third‑party contractors

What’s the right policy type?

Coverage varies by insurer and endorsement; work with a broker to align limits, deductibles, and indemnity periods. Explore Summit’s Hotel Insurance for larger inns or mixed hotel/STR portfolios.

Risk management checklist for hosts

• Written house rules and guest communications; confirm acceptance on booking

• Documented cleaning/turnover procedures; photographic condition logs

• Slip‑resistant surfaces; handrails, guardrails, and adequate lighting

• Interconnected smoke/CO detectors; fire extinguishers on each level

• Smart‑lock access with rotating codes; audit logs; privacy‑respecting cameras only at entrances

• Preventive maintenance schedule (HVAC, chimneys, hot tubs, decks)

• Incident log and rapid response plan; know how to file a claim with Summit (How to File a Claim)

Why work with Summit

• Responsive support and dedicated account management

• Market comparison across leading insurers to balance coverage depth and price

• Curated policy wording for STR/B&B operations, including loss of rental income, innkeepers’ liability, and cyber options

• Ongoing reviews as property mix, revenue, or platform exposure changes- Same‑day certificates of insurance (COIs) for platforms, lenders, and strata/condo requests

Compliance quick notes by province (outside Quebec) - British Columbia: Many municipalities regulate STRs—confirm business licence/zoning, review strata bylaws, and notify your insurer of STR use. Some lenders request STR‑specific wording. - Alberta: Licensing and zoning vary by city; disclose STR operations to your insurer and condo corporation. Certain bylaws may require proof of liability limits. - Ontario: Municipal registration (e.g., Toronto, Ottawa) and principal‑residence rules may apply. Check condo/landlord permissions and keep proof of insurance ready. - Prairies & Atlantic Canada: Local bylaws and permitting differ. Align policy type with use (STR vs. long‑term) and maintain guest/booking records for underwriting. - Note: Availability, limits, and endorsements vary by insurer and province; Summit will advise and place compliant coverage accordingly.

Additional FAQs

• Is Airbnb/VRBO protection a substitute for insurance? No. Platform protections include exclusions, conditions, and sub‑limits and typically don’t replace dedicated coverage for your building/contents, loss of rental income, cyber, liquor, or innkeepers’ liability. Strata, lenders, and property managers often require your own policy.

• What is a short‑term rental endorsement? It’s an endorsement added to a home/landlord or commercial policy that permits STR activity and modifies coverage for guest stays (e.g., liability, guest property, and sometimes loss of income). Availability and scope vary by insurer; dedicated STR/B&B packages often provide broader protection.

Related Summit solutions

• Hotel Insurance

• Landlord Insurance

• Business Interruption Insurance

• Commercial Property Insurance

• Commercial General Liability

• Cyber Insurance

FAQs

• Do I need a special policy for Airbnb/VRBO? Yes. Standard home or landlord insurance often excludes commercial short‑stay activity. A dedicated STR/B&B package aligns coverage to guest‑stay risks.

• What is “innkeepers’ liability”? It addresses legal liability for loss of or damage to guests’ personal property while in your care, typically available within hospitality liability wordings or by endorsement.

• How does loss of rental income work? When a covered property loss forces you to cancel bookings, business interruption can replace lost income during the restoration period, subject to a waiting period and exclusions such as pandemics or government orders. See Business Interruption Insurance.

• Is liquor liability necessary? If you serve or provide alcohol, consider liquor liability—even for complimentary tastings.

• Can I add cyber coverage later? Yes, but bundling early can reduce gaps and coordinate incident response. See Cyber Insurance.