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Navigating Short-Term Rental Insurance: A Guide for Tennessee Property Owners

Short-term rentals, facilitated by platforms like Airbnb and Vrbo, have become increasingly popular in Tennessee, attracting travelers seeking unique accommodations. However, it's crucial for property owners to address the potential risks involved and ensure they have adequate insurance coverage. In this guide, we'll take a look at some the aspects of short-term rental insurance.

Understanding Short-Term Rental Insurance

Traditional homeowners and landlord insurance policies typically don't provide coverage for short-term renting a home. Hosting guests introduces unique liabilities that may not be covered under standard policies. As such, specialized insurance products tailored for short-term rentals have emerged to fill this gap.

Key Considerations for Tennessee Property Owners

1. Liability Coverage:

Liability coverage is fundamental for short-term rental hosts. It protects against claims for bodily injury or property damage that may occur on the rental property. In Tennessee, liability coverage is especially important due to the potential for accidents or injuries on your premises.

2. Property Damage:

Standard homeowners insurance may not cover damage caused by short-term renters. Dedicated short-term rental insurance policies often include coverage for property damage caused by guests, such as accidental spills or intentional vandalism.

3. Loss of Income:

In the event your short-term rental property becomes uninhabitable due to a covered loss, loss of income coverage can provide compensation for the income you would have earned during the rental period. This can be crucial for maintaining financial stability while repairs are underway.

4. Theft and Vandalism:

Short-term rental properties may be more susceptible to theft or vandalism than primary residences. Insurance policies tailored for short-term rentals typically offer coverage for theft of personal property and damage caused by vandals.

Choosing the Right Insurance Policy

When selecting insurance for your Tennessee short-term rental property, consider the following factors:

  • Coverage Limits: Ensure the policy's coverage limits are adequate to protect your property and assets.
  • Deductibles: Understand the deductible amounts and how they may impact your out-of-pocket expenses in the event of a claim.
  • Exclusions: Review the policy exclusions carefully to understand what is not covered.
  • Additional Coverage Options: Some insurers offer optional coverage for specific risks, such as sinkhole or equipment breakdown.
  • Short-term rental endorsement: Make sure that the insurer has included coverage for the home being a nightly rental.


As the popularity of short-term rentals continues to rise in Tennessee, it's essential for property owners to prioritize insurance protection. By securing a specialized short-term rental insurance policy, you can mitigate the financial risks associated with hosting guests and ensure peace of mind as you welcome travelers to experience the beauty of the Volunteer State.