Arizona has become an increasingly popular destination for travelers looking for sunshine, outdoor adventure, and year-round warmth. With cities like Phoenix, Scottsdale, Sedona, and Flagstaff attracting visitors for everything from golf trips to desert getaways, many homeowners are turning to short-term rentals and Airbnb listings as a profitable side business.
If you own a home or condo you rent out to guests for short stays, you might be wondering: can you insure a short-term rental or Airbnb in Arizona? The answer is yes — but it’s not quite as simple as adding it to your regular homeowner’s policy. Let’s unpack what you need to know about short-term rental insurance, what it covers, and why it matters.
Why Regular Homeowners Insurance Isn’t Enough
A standard homeowners insurance policy is designed to cover your personal residence — the place where you and your family live. It typically includes protection for the structure of the home, your personal belongings, and liability for accidents that happen on your property.
However, when you start using your property as a short-term rental or Airbnb, it changes your risk profile in the eyes of insurance providers. Most standard home insurance policies exclude or limit coverage for business-related activities, including renting out your home to guests.
That means if a guest damages your property, steals belongings, or gets injured during their stay, your regular homeowners insurance may deny the claim.
What Is Short-Term Rental Insurance?
Short-term rental insurance (also called vacation rental insurance) is a type of policy specifically designed for properties that are rented out to guests on a temporary basis. It provides protection against the unique risks that come with hosting short-term visitors — risks that regular homeowners insurance doesn’t cover.
Some insurers offer this as a standalone policy, while others allow you to add it as an endorsement or rider to an existing homeowners policy, depending on how often you rent out the property.
What Does Short-Term Rental Insurance Cover?
Coverage can vary between insurers, but most short-term rental policies typically include:
- Property damage coverage:
Protects your home and furnishings if guests cause accidental or intentional damage during their stay. - Liability protection:
Covers medical bills, legal fees, and settlements if a guest is injured on your property and you’re found responsible. - Loss of income:
Compensates you for lost rental income if your property becomes temporarily uninhabitable due to a covered loss (like a fire or water damage). - Theft coverage:
Protects against theft of your personal belongings by guests or third parties. - Legal expenses:
Helps cover the cost of legal defense if a guest sues you for property conditions, injuries, or other disputes.
Some policies also offer additional options for vandalism, bed bug remediation, or damage caused by parties and events.
Does Airbnb Offer Any Protection?
If you list your property on Airbnb, the platform provides some built-in coverage through its AirCover for Hosts program. This includes:
- Host liability insurance (up to $1 million): Covers claims if a guest is injured or if their property is damaged on your premises
- Host damage protection (up to $3 million): Covers damage to your property and belongings caused by guests.
While AirCover is a valuable safety net, it has limitations. It may exclude certain incidents (like intentional acts or shared spaces) and often won’t cover loss of income or legal disputes. That’s why many experienced hosts also carry a dedicated short-term rental insurance policy.
Is Short-Term Rental Insurance Required in Arizona?
While Arizona state law doesn’t require a specific short-term rental insurance policy, some cities and counties may have local regulations for vacation rental properties. In addition, many mortgage lenders and homeowners associations (HOAs) require proof of appropriate insurance coverage if you rent out your property.
Even if it’s not legally required, having the right insurance is a smart way to protect your investment, avoid financial losses, and maintain peace of mind when hosting guests.
Yes — you can and absolutely should insure a short-term rental or Airbnb in Arizona. A specialized short-term rental insurance policy provides coverage that standard homeowners insurance doesn’t, protecting you from property damage, liability claims, theft, and lost income.
Whether you rent your home seasonally or year-round, making sure you have the right coverage in place is essential to safeguard both your property and your financial future. Before listing your property, consult with an experienced insurance agent to discuss your options and choose a policy that fits your needs.
