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What to Know About Short-Term Rental Insurance in Colorado

An image of someone holding a small model house representing the protection of short term rental insurance.

On the surface, short-term rental insurance protects property owners who rent out their homes, apartments, or rooms to guests, typically through platforms like Airbnb, VRBO, HomeAway, or vacation rental management company sites like Effortless Rental Group. While it’s evident that this type of insurance provides coverage for potential risks and liabilities associated with short-term rentals, many questions may remain unanswered when looking at your options.

Today, we’ll share some critical points about short-term rental insurance in Colorado.


Short-term rental insurance typically includes property damage, liability, and loss of income coverage. It protects against damages caused by guests, such as accidental damage, theft, vandalism, or fire. On the other hand, liability coverage is vital if a guest gets injured on the property and files a lawsuit. Finally, loss of income coverage reimburses the property owner for lost rental income due to covered perils that make the property uninhabitable.

Requirements and Host Compliance

Sometimes, the platform through which you rent your property may require short-term rental insurance. For example, Airbnb’s host liability insurance offers liability coverage for hosts in the United States and other eligible countries. Furthermore, compliance with local laws and regulations related to short-term rentals is essential. Some municipalities may have specific requirements, such as obtaining a business license or short-term rental permit, and failure to comply could impact your insurance coverage.

Policy Types, Limits, and Deductibles 

Different insurance policies are available for short-term rentals, including standalone policies specifically designed for short-term rentals and endorsement options that can be added to an existing homeowner’s insurance policy. It’s critical to carefully review the policy terms and coverage to ensure it meets your specific needs.

Each insurance policy will have its own coverage limits and deductibles. Coverage limits refer to the maximum amount the insurance company will pay out for covered damages or losses. Deductibles are the amount the property owner is responsible for paying out of pocket before the insurance coverage kicks in.

Additional Considerations 

When shopping for short-term rental insurance, consider factors like the location and condition of your property, the number of guests you typically accommodate, and any additional amenities or services you offer. These factors can affect the cost and coverage options available to you.

Your Trusted Vacation Rental Management Team in Colorado

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To get accurate and up-to-date information on short-term rental insurance in Colorado, it’s recommended to consult with insurance providers specializing in this type of coverage. They can provide personalized advice and policy options based on your specific circumstances and property. Thankfully, the professional team at Effortless Rental Group and its partners are well-versed in the various aspects of property insurance and can help you navigate through uncharted waters. 
Reach out online to discover how we can help you maximize your investment with a no-cost revenue projections report today.