What percentage of vacation rental hosts have no insurance?

According to a Lodgify survey of 170+ hosts, 31.6% had no short-term rental insurance at all. Among insured hosts, 58% relied on Airbnb's AirCover, 37% had Vrbo's Liability Cover, 10% had Know Your Guest by Truvi, and 5.9% had Safely.

What percentage of homeowner insurance claims get denied?

According to Weiss Ratings, 42% of US homeowner insurance claims were closed without payment in 2024, up from 25.7% in 2004. This trend is particularly concerning for vacation rental operators who may face additional exclusions for commercial use.

What is the most common insurance claim for vacation rentals?

According to Schofields Insurance (10,000+ holiday homes insured), water escape (burst pipes) is the most common claim at 38% of all claims, with an average cost of GBP 5,500. Storm damage is second at 33% (avg GBP 6,000), followed by injury/accident at 10% (avg GBP 11,000).

How much does short-term rental insurance cost?

According to Proper Insurance, dedicated STR insurance typically costs $2,000-$4,000 per year depending on property value, location, and coverage limits. Vrbo's damage protection tiers range from $59 for $1,500 coverage to $119 for $5,000 coverage per booking.

Industry Data

Short-Term Rental Insurance Statistics (2026)

Claim types and costs from 10,000+ insured holiday homes, denial rate trends, coverage gaps, and what percentage of hosts are operating without insurance.

7 sources verified

Primary data only

Updated May 2026

31.6%

of hosts have no STR insurance at all

Lodgify, 170+ hosts

42%

of US homeowner claims closed without payment

Weiss Ratings, 2024

38%

of holiday home claims are water damage

Schofields, 10K+ homes

Coverage Gaps

31.6% of hosts surveyed had no short-term rental insurance at all.

According to Lodgify, survey of 170+ hosts.

Among insured hosts: 58% relied on Airbnb's AirCover, 37% had Vrbo's Liability Cover, 10% had Know Your Guest by Truvi, and 5.9% had Safely.

According to Lodgify, same survey.

42% of US homeowner insurance claims were closed without payment in 2024, up from 25.7% in 2004.

According to Weiss Ratings, 2024 insurance industry analysis.

The insurance industry processes nearly $1 billion yearly in pet liability claims alone.

According to Proper Insurance.

Claim Types and Costs (Holiday Homes)

According to Schofields Insurance, which insures over 10,000 holiday homes, these are the most common claim types and their average costs.

Claim Type	% of Claims	Avg Cost
Water escape (burst pipe)	38%	GBP 5,500
Storm	33%	GBP 6,000
Injury / accident	10%	GBP 11,000
Accidental damage	8%	GBP 1,600
Theft	7%	GBP 2,700
Fire	3%	GBP 13,500
Flood	1%	GBP 35,000

According to Lodgify / Schofields Insurance, 10,000+ holiday homes insured, 2019.

US Homeowner Claim Costs

General US homeowner insurance claim data provides context for vacation rental operators evaluating their coverage needs.

US homeowner claims (2023): water damage averages $15,400 per claim, fire/lightning averages $88,170, theft averages $5,524. Overall average claim severity: $20,062.

According to the Insurance Information Institute, 2023 data.

Water damage and freezing account for nearly 1 in 5 of all home insurance claims in the US.

According to the Insurance Information Institute.

Platform Protection Tiers

Airbnb AirCover approves 56.75% of claimed damage amounts. Vrbo approves 68.29%.

According to Avada Properties, 20,000+ bookings.

Vrbo damage protection tiers: $59 for $1,500 coverage, $89 for $3,000, $119 for $5,000.

According to Vrbo Help Center.

Safely pays 80% of claims within four days. Guesty reports 85% of claims pay within four days with coverage up to $20,000 per booking.

According to Safely and Guesty.

Sources

Lodgify. Unauthorized Parties Survey. 170+ hosts. 2023.https://www.lodgify.com/blog/unauthorized-parties-survey/

Weiss Ratings. US Homeowner Insurance Claims Analysis. 2024.https://weissratings.com/

Lodgify / Schofields Insurance. Rental Host Concerns. 10,000+ holiday homes. 2019.https://www.lodgify.com/blog/rental-host-concerns/

Insurance Information Institute. Facts + Statistics: Homeowners and Renters Insurance. 2023 data.https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance

Avada Properties. Airbnb & Vrbo Damage Claims Statistics.https://avadaproperties.com/airbnb-vrbo-damage-claims-statistics-and-assumptions/

Proper Insurance. Pet and Animal Liability Coverage.https://www.proper.insure/coverages/pet-and-animal-liability/

Vrbo Help Center. Property Damage Protection.https://help.vrbo.com/articles/How-do-I-protect-my-property-from-potential-damage