Everything an investor needs to know about short-term rental insurance in the U.S.

The American dream… with one overlooked detail

Many people think:

“I’ll buy a house in Florida, list it on Airbnb, and start earning passive income in dollars from tourists. Easy money every month!”

And yes — short-term rentals in the U.S. can be a highly profitable business.

In fact, Florida was the second most profitable state for Airbnb hosts in 2023, just behind California.

But here’s the part most immigrant investors don’t know:

Airbnb’s protection is limited and does not replace real insurance.

And even a small incident can turn into a huge financial nightmare if you don’t have the right policy.

What is Airbnb Insurance (Short-Term Rental Insurance)?

If you’re renting out a property in the U.S. for short stays — through Airbnb, VRBO, Booking, or similar platforms — you need a specific type of policy:

Short-Term Rental Insurance, or

Landlord Insurance with STR endorsement

This is not the same as:

• Homeowners insurance (for primary residences), or

• Standard landlord insurance (for long-term tenants)

Why?

Because the risks are higher:

• Frequent guest turnover

• Higher property wear and tear

• Greater chance of damage, noise complaints, accidents

• Negative reviews

• Legal exposure

Airbnb does offer protection — but it has many loopholes

Airbnb provides two programs:

1. AirCover for Hosts

Automatically included for hosts. Claims to cover up to $3 million in guest-related accidental damage.

BUT…

• Doesn’t cover intentional damage

• Doesn’t cover lost income if your property becomes uninhabitable

• Doesn’t cover damage to shared/common areas

• Doesn’t cover pets if brought without permission

• Doesn’t cover floods, hurricanes, or natural disasters

• And Airbnb itself states: “This is not a replacement for homeowners or renters insurance.”

2. Host Liability Insurance

Covers injuries or lawsuits from guests — but with strict exclusions and limits.

Moral of the story: Trusting Airbnb alone is like using a broken umbrella in a hurricane.

The real risks of not having the right insurance

If you own a property on Airbnb and don’t have the proper insurance, you’re exposed to:

Fires started by guests

Structural damage (beds, flooring, plumbing, furniture)

Unauthorized pets causing destruction

Wild parties ending in disaster

Guest injury lawsuits

Damage from hurricanes or floods (very common in Florida)

Lost income if the property becomes uninhabitable

Worst case? You’re not covered at all.

Real-life example: The guest lit a candle…

One of our clients at 2Easy shared this story:

He rented out his Orlando property to families visiting from abroad.

One day, a guest lit a scented candle in the bathroom and forgot about it before going out for dinner.

The candle fell. The curtain caught fire.

Damage: over $25,000.

Airbnb paid part of the claim.

But the rest? Came straight out of his pocket.

If he had a short-term rental insurance policy, the entire damage would’ve been covered.

SEO Insight: How does Airbnb property insurance work in Florida?

A proper short-term rental insurance policy typically covers:

Guest-caused property damage

Furniture and appliance losses

Liability protection (lawsuits & injuries)

Income loss during repairs

Natural disasters (hurricanes, windstorms, floods)

Pet damage (if included in your policy)

Temporary coverage during renovations

Pro tip: Some insurers require a minimum 2-night stay to qualify for STR insurance.

Local regulations: The factor most investors ignore

Florida has strict local rules around short-term rentals, and these affect your insurance:

• Some cities require permits

• Others enforce minimum night stays

• A few prohibit Airbnb completely

If you’re not compliant with these local laws, your insurance claim may be denied.

That’s why working with a broker who knows Florida regulations is a game changer.

How much does Airbnb insurance in Florida cost?

The cost depends on several factors:

Location (near water, crime rate, flood zone)

Size and type of property

Frequency of bookings

Security features (cameras, alarms)

Extra coverages (like windstorm or flood)

To give you an idea:

A 3-bedroom home in a popular area can start at around $900/year.

Bonus: If the property is declared as an investment, the insurance may be tax-deductible on your U.S. return.

Why choose 2Easy?

Because we go beyond selling policies.

We speak English, Spanish, and Portuguese.

We understand your goals as an investor.

We offer policies from trusted insurers.

We check local regulations for compliance.

We help you file claims and navigate the process if needed.

No fine print. No stress.

Just real protection — and peace of mind.

Final thought: Airbnb in Florida is a smart investment — but without proper insurance, it’s a trap.

There’s no point in earning $2,000/month if you lose $30,000 in one claim.

And yes, it happens — to people who realized the risk too late.

Don’t be that person.

If you’re thinking about investing in an Airbnb in Florida — or already own one and want to review your current protections:

Talk to 2Easy.

We’ll help you build the ideal insurance plan for your property — focused on profit, security, and clarity.

FAQ – Airbnb Insurance Questions

1. Does standard home insurance cover Airbnb rentals?

No. You need a specific short-term rental policy — otherwise, claims may be denied.

1. Is Airbnb’s coverage enough?

No. It’s limited and doesn’t offer full protection. Think of it as a bonus — not a replacement for real insurance.

1. Is additional insurance required by law?

It’s not mandatory — but in Florida, it’s highly recommended if you want to avoid costly surprises.

Call us at (321) 344-1199

We’ll explain everything — in English, Spanish, or Portuguese — with no obligation.

Authored by 2Easy Insurance by WMB Digital Marketing