Mid-Term Rental Insurance Guide: Policies & Claims

September 17, 2025

Why this mid-term rental insurance guide matters

Mid-term rentals sit between short stays and long leases. That means you face unique exposure: guest-caused damage, liability claims, and business interruption when a unit becomes uninhabitable. This mid-term rental insurance guide explains what coverage you need, where common policy gaps appear, and how to stay compliant with local rules so you can scale with confidence.

Policy types explained — what this guide recommends

Know the basic policies and what they actually cover:

Landlord / Rental Property Policy — protects the building; add contents coverage for furniture and appliances.
Contents / Personal Property Add-on — covers furnishings and replacements. Essential for furnished MTRs.
Commercial General Liability (CGL) — covers third-party bodily injury and property damage. Important for guest injuries.
Business Owner Policy (BOP) — bundles property and liability; efficient for small portfolios.
Loss of Income / Business Interruption — pays lost rent when a covered event forces repairs. Don’t skip this.
Umbrella Liability — inexpensive extra limits (start at $1M) to protect against big claims.
Theft & Vandalism / Crime — covers guest-caused theft or malicious damage beyond normal wear.
Short-Term Rental Endorsements — ask insurers if they will explicitly cover 30–180 day furnished rentals; some standard policies exclude paid stays.

Minimum coverage & practical limits (starter numbers)

These are starting points — talk to a broker for a tailored plan.

General liability: $1,000,000 per occurrence (minimum).
Umbrella: $1,000,000 extra (consider $2–5M if you scale).
Contents replacement: $10,000–$50,000 depending on furnishing value.
Loss of income: cover at least 3 months of expected rent.
Property limit: replacement cost recommended (not actual cash value).

Document replacement-cost estimates for furniture and electronics before you buy a policy. That speeds claims and avoids underinsurance.

How to buy right — step-by-step from this insurance guide

Document your business model. Number of units, average stay length, furnished vs unfurnished, projected revenue.
Talk to a specialty broker. Standard homeowner agents often miss mid-term gaps. Ask for brokers who handle vacation or furnished rental portfolios.
Request clear endorsements. Get written confirmation that 30–180 day furnished stays count as covered operations.
Get a Certificate of Insurance (COI) that lists each property address and limits. Save the COI per unit.
Review annually. Update limits when you add units or upgrade furnishings.

Sample broker request (copy/paste):

Hi [Broker Name], I manage furnished mid-term rentals (30–180 days). I need quotes for property + contents, general liability ($1M), loss-of-income, and an umbrella. Please confirm coverage for furnished paid stays and provide a COI naming each property address.

Policy gaps hosts commonly miss (and how this guide helps you avoid them)

Assuming homeowner coverage applies. It often doesn’t for paid stays.
Relying only on platform protections (Airbnb, etc.). Those are supplemental and may exclude commercial operations.
Skipping loss-of-income coverage. Repairs can take months; you’ll lose income unless covered.
Not documenting inventories. Lack of pre-check-in photos undermines damage claims.
Ignoring local licensing. Running rentals without required permits can void claims.

Fix these before you list a second unit.

Local compliance checklist (high-impact items)

Local rules vary, but these items commonly affect insurance and legality:

Business license or short-term rental registration
Transient Occupancy Tax (TOT) registration and remittance
Zoning and HOA rules (some HOAs ban short-term rentals)
Safety devices: smoke/CO detectors, fire extinguisher, clear egress
Occupancy limits and parking rules

Keep permits and tax registration docs handy — insurers may ask during claims.

Contracts, leases & renter expectations — how this guide ties them together

Your lease should align with insurance expectations:

State the stay period and who pays which utilities.
Require a security deposit and outline damages policy.
Ask guests to carry renter’s insurance (liability + contents) or require employer guarantees for corporate bookings.
Attach an inventory and have guests sign at check-in.

Sample lease clause (copy/paste):

Tenant must maintain renter’s insurance covering personal liability during the stay. Host’s insurance covers property and liability; tenant remains liable for guest-caused damage beyond normal wear.

Damage claims process — follow this guide for faster resolution

Document condition at check-in (photos + timestamp).
Require cleaner photos at check-out and note issues.
If damage appears, gather receipts and photos, file claims within insurer timelines.
Communicate with guest, send a damage invoice, and include lease clauses that permit deductions from deposit.
Escalate to the insurer only after you document and attempt resolution.

Keep a digital folder per booking for claims evidence.

Tools & templates included in this insurance guide

Broker outreach script (above)
COI request email template (copy/paste)
Inventory checklist (downloadable idea)
Damage claim email template (copy/paste)

Sample COI request (copy/paste):

Hi [Broker Name], can you issue a Certificate of Insurance naming [Property Address] with property and liability limits of [limits]? Please email the COI to [email]. Thanks.

Damage claim email (copy/paste):

Hi [Guest Name], after your checkout we found damage to [item]. Per the lease, we need to charge $[amount] for repair/replacement. Attached are photos and receipts. Please confirm receipt and we’ll process the charge.

KPIs & records every host should track per the mid-term rental insurance guide

Policies per unit and renewal dates (calendar reminders)
Claims filed and payout timing
Damage incidents per 100 bookings
Average claim cost vs. premium paid
Time to settle claims

Use these metrics to evaluate whether your coverage and deductibles still fit your scaling plan.

Quick checklist — implement this mid-term rental insurance guide in one week

Talk to a specialty broker and request quotes.
Create an inventory with photos for each unit.
Add a lease clause requiring renter’s insurance or employer guarantee for corporate bookings.
Get COIs for each property and save them on file.
Set calendar reminders for policy renewals and annual reviews.

FAQs — mid-term rental insurance guide (short & actionable)

Q: Can I require tenants to have renter’s insurance?
A: Yes. It’s a reasonable requirement for mid-term stays and reduces risk for both parties.

Q: Does Airbnb insurance cover me?
A: Platform protections are supplemental. Don’t rely on them as your primary coverage for mid-term operations.

Q: How much should my contents coverage be?
A: Estimate replacement cost of furnishings; $10k–$50k is common for one furnished 1BR unit.

Final note — use this mid-term rental insurance guide as operational guardrails

Insurance and compliance let you scale without catastrophic risk. Treat this guide as part of your operations playbook: document, insure, automate renewals, and audit yearly. Do that and you can grow your portfolio without exposing your business.

CTA — list where mid-term insurance and bookings align

If you want to list on a platform that targets 30+ day stays and attracts vetted professionals, try MiniStays. They focus on furnished, month-plus bookings—helpful while you lock in the right coverage and processes. Start hosting on Mini S tays →