3 Gaps in STR Insurance That Could Cost You Thousands

Introduction:

Most short-term rental (STR) owners assume their property insurance covers everything they need. But

many policies are written for standard homeowners or long-term rentals, and that mismatch can leave

dangerous gaps.

Here are three of the most common gaps we see when reviewing STR insurance policies:

1. Wrong Occupancy Type

Many policies still classify the property as a primary residence or long-term rental. If you're hosting guests on Airbnb or Vrbo, that may void your coverage entirely. Always check that your policy explicitly allows short-term rental use.

2. Missing Loss of Income Protection

If a covered loss (like fire or water damage) makes your property uninhabitable, will your policy reimburse your lost rental income? STR owners rely on consistent cash flow, yet many standard policies exclude this crucial protection.

3. Liability Gaps for Guest Injuries

Most homeowner policies aren't designed for the risks of commercial hosting. If a guest is injured and sues, your personal liability limits may not apply or may be too low.

What to Do:

• Ask your agent to confirm your policy matches STR use.

• Review your loss of income and

liability limits.

• Consider a professional review to catch what you might miss.

At Crystal Clear Property Partners, we review dozens of STR policies every month and flag these issues more often than you'd think.