TL;DR: Vrbo automatically provides hosts with $1M in liability insurance, covering guest injuries and third-party property damage. But it won’t cover damage guests cause to your property. Guests can optionally purchase damage protection, but many don’t, leaving hosts exposed. For full coverage, hosts should layer Vrbo’s built-in insurance with dedicated third-party damage protection, which offers faster payouts, broader coverage, and works across all booking platforms.
Renting your property through services like Vrbo can get you a steady flow of guests and regular bookings. Vrbo features your property listing, connects you with potential renters, and takes secure payments with minimal friction.
But you still need to know exactly what other essentials it takes care of. For example, does Vrbo provide insurance for hosts? And what’s included in Vrbo insurance?
Knowing the answer might save you from heartbreak and hefty charges when something unexpected happens, like a guest falling down your stairs and wanting to sue you for medical bills. Or accidental damage to your neighbours property after an unauthorized party.
Here, you’ll learn about Vrbo’s liability insurance and damage protection policies, including what’s covered and what the limitations are. You’ll be able to compare Vrbo insurance to other providers to find out how to get the best protection for your properties.
Does Vrbo have insurance for owners?
Vrbo has liability insurance that provides owners and property managers $1M in primary liability coverage. It protects hosts against reimbursing the financial losses to a guest suffering from bodily injury or accidental damage caused by the guest to a neighbour’s property.
But if your guest breaks your TV or spills wine on your bed linen, this isn’t covered. So, you do need another form of protection for accidental or intentional guest damage.
About Vrbo’s $1M Liability Insurance program
The moment a guest enters your property, you become responsible for their safety, and could be financially responsible if something goes wrong.
It’s difficult to find short-term rental insurance with liability protection because most insurers won’t touch it. People enter your property every few days and may behave more recklessly than they would at home. The good news is, Vrbo has its own $1M Liability Insurance program, and it does have some perks.
Vrbo insurance coverage
Here are the key facts about Vrbo’s liability insurance policy:
- Provides up to $1,000,000 USD in coverage per property
- Covers claims made because a guest got accidentally injured at your property
- Covers property damage claims because a guest accidentally damaged a third-party’s property
- Automatically covers all bookings placed through Vrbo checkout
Vrbo insurance requirements
- There’s no extra cost (it’s included in the Vrbo service)
- All online reservations are automatically covered
- You can combine it with your own insurance
- Only applies to bookings placed through the Vrbo platform
How does Vrbo insurance work?
Vrbo provides primary coverage for eligible claims. That means if you don’t have liability insurance for your rental property, Vrbo homeowners’ insurance will protect you. If you already have liability insurance, Vrbo works with your existing provider, giving you an additional $1M protection.
Keep in mind: it only works for reservations processed online through Vrbo checkout. So, if you want to automatically get insurance, make sure you handle your bookings through the Vrbo platform.
The Vrbo liability insurance program is backed by Generali Global Assistance & Insurance Services, which belongs to the Europ Assistance (EA) Group. Vrbo is a policyholder, while property owners and managers are the insured parties.
What are the limitations of Vrbo insurance for hosts?
$1M seems enough to cover all kinds of losses, but it’s important to note that Vrbo’s Liability Insurance program doesn’t include guest damage protection.
If someone ruins your carpet with their morning coffee, breaks furniture, or leaves scratches all over the wooden floor, you’ll get nothing from the insurer to pay for the repairs. Unfortunately, these little accidents happen all the time in short-term rentals.
Your guests can purchase Vrbo damage protection, but it’s aimed at protecting them rather than you. At least 24 hours before they check in, they can choose from the following policy options:
- $59 for $1500 coverage
- $89 for $3000 coverage
- $119 for $5000 coverage
But it’s totally optional, and guests decide whether they need it or not. Alternatively, you can request a refundable damage deposit, but guests can be put off by needing to pay an extra few hundred dollars upfront.
With Vrbo, neither the liability insurance program nor accidental damage policy cover damage or injury caused on purpose by your guest. Plus, you may need to provide a ton of evidence to prove your claim, waiting weeks for a resolution.
Is Vrbo damage protection worth it?
For guests, Vrbo’s damage protection is usually worth it because you pay a small upfront fee rather than a larger deposit. It also feels more neutral, without the potential for heated disagreements over deposit refunds.
That said, guests might not see the benefit or they may not purchase insurance high enough to cover what happens at your property. As the host, you’re not covered if they intentionally damage your property or place their booking outside of the Vrbo checkout.
It’s worth knowing how Vrbo insurance compares to the alternatives, whether it’s another booking platform like Airbnb or third-party damage protection through a provider such as Truvi, Here’s a quick breakdown to give you an idea:
|
Vrbo (Liability Insurance) |
Vrbo (Damage Protection) |
Airbnb (AirCover) |
Truvi (Third-party Damage Protection) |
|
|
Primary model |
Insurance is automatically applied to the booking |
Guest chooses to pay for insurance OR host requests a deposit |
A “guarantee” is automatically applied to the booking (not insurance) |
Automatic coverage activated through guest screening |
|
Max coverage |
Up to $1,000,000 |
Variable |
Up to $3,000,000 |
Up to $1,000,000 |
|
Key inclusions |
Guest injury, damage to third-party properties, legal fees |
Accidental damage, extra cleaning, pet damage |
Accidental damage, pet damage, deep cleaning, lost income, guest injury |
Accidental/intentional damage, extra cleaning, unauthorized parties |
|
Key exclusions |
Accidental or intentional damage to host’s property |
Intentional damage unless covered by the deposit, lost income |
Intentional damage, general wear and tear, acts of nature |
Liability claims, Lost income, acts of nature |
|
Cost to host |
Free (included in platform fees) |
Free (host sets deposit or guest pays fee) |
Free (included in platform fees) |
Per-booking (approx. $10-28) |
|
Claims window |
Report as soon as possible |
Within 14 days of checkout |
Within 14 days of checkout |
Within 14 days of checkout |
|
Payout speed |
Depends on complexity |
3–7 business days (via Vrbo/Generali) |
Typically 2 weeks (via Resolution Center) |
3–5 business days post-approval |
|
Guest friction |
Low (No upfront cost/deposit) |
High/Med (Upfront deposit or non-refundable fee) |
Low (No upfront cost/deposit) |
Low (Usually replaces deposits/waivers) |
|
Multi-platform? |
No (Only Vrbo stays) |
No (Only Vrbo stays) |
No (Only Airbnb stays) |
Yes (Direct bookings & all platforms) |
If you’re hosting on Airbnb, check out our guide to Airbnb’s Host Guarantee.
Why you need extra protection for Vrbo short-term rentals
The reality is that guest-caused damage happens regularly in short-term rentals. Coffee spills, broken furniture, pet accidents, missing items — these aren’t rare incidents, they’re normal operational risks.
Relying on platform claims processes means weeks or months of documentation, disputes, and uncertainty while your property sits unrentable. On Vrbo, it’s up to guests whether they pay for additional damage protection, so resolving issues can quickly end up draining your time and profits.
Regular insurance providers may cancel your policy or refuse to pay claims if they discover you’re hosting without proper coverage. That’s why it’s essential to have protection specifically designed for short-term rentals, not a standard homeowner policy. That way, you’ll have peace of mind that there are no gaps in your coverage.
A former real-estate agent, Adele Nevins, shares her thoughts on this:
“If the tenants do something very bad or destroy your property, you have no recourse. I can tell you, however, that you should read the insurance policy because the latest thing, given nationwide crime and fraud, is that the underwriters will not cover you if you rent out the property. When you buy the insurance, you must inform your agent or the insurance company that you intend to rent out the space through Vrbo and/or Airbnb.”
Here are a few key benefits of choosing extra protection with a third-party provider:
Increased profitability of short-term rentals
When you have to pay for most damage or claims out of your pocket, your rental business’ give-and-take balance will become disastrous pretty soon. It will be all give, give, give with minimum profit.
Using third-party damage protection, as an addition to Vrbo insurance for owners, helps minimize financial losses. You get coverage for guest property damage, theft, guest damage to belongings, and other mishaps.
Emergency fund for unexpected cases
By selling damage waivers, you can gradually accumulate an emergency fund and use it when standard Vrbo insurance doesn’t work. Many guests would be happy to pay an extra 30 or 40 dollars to waive their liability for any accidental damage. Put these payments aside for some time to cover wear and tear or extra cleaning expenses.
More responsible guests and fewer problems
When guests are ready to buy a damage waiver or deposit, they are usually more responsible. The refusal to pay several extra dollars may be a red flag. That’s how additional insurance tools can help you filter out suspicious travelers. Platforms like Truvi also have guest screening and ID verification features to detect fraud.
Better rental experience for travelers
A less obvious benefit of using third-party insurance services is a smoother customer experience. Difficult guests are out there but, believe us, most travelers want to avoid claims, conflicts, and accusations. When you partner with an external insurance company, they do the dirty work while you and your guests enjoy the stay.
Cody Wood, COO of STR Accommodations, describes how Truvi changed the customer experience for his company:
“We are a hospitality company with a hospitality mindset. We don’t want to be chasing guests for money. So, it’s also great that Truvi handles the backend for us. We want guests to have a great experience, from the very first step they take in booking the property to when they leave. Without us having to go after them for small damages.”
You can learn more about how STR Accommodations uses Truvi in the case study.
Protect your Vrbo properties beyond platform limits
Vrbo’s $1M Liability Insurance covers guest injuries and third-party property damage, but it leaves a critical gap: protection against damage caused by guests to your property. While guests can purchase optional damage protection, many don’t — leaving you exposed when things go wrong.
Professional property managers layer protection by combining Vrbo’s basic coverage with dedicated screening and damage protection services. Truvi’s guest screening catches problem bookings before guests arrive, filtering out fake profiles and known troublemakers.
Meanwhile, you’ll be covered up for up to $1M in damage with decisions typically made within 5 business days. No waiting months for platform claims, no chasing guests for money.
Ready to protect your Vrbo properties?
Get comprehensive guest screening and up to $1M damage protection that works across all your booking channels – Vrbo, Airbnb, direct bookings and more.
