Vacation rental insurance for property managers
One program replaces the stack of policies you're managing today
Vacation rental operators shouldn't need a homeowners policy, a landlord endorsement, and a commercial rider to cover one property. Velaris combines all three into a single commercial program — with endorsements for the risks that actually keep you up at night.
By Andrew Bate, Co-founderReviewed by Stuart BateUpdated
In short
Vacation rental insurance is a commercial policy for homes rented to transient guests. It covers what a homeowners policy excludes: guest-caused damage, liability for guest injuries, and lost booking income when a property goes offline. Velaris writes it as one program across an entire managed portfolio, with homes added or removed through your PMS, instead of a separate policy for every address.
Why vacation rentals need dedicated insurance
Your properties don't fit neatly into homeowner, landlord, or standard commercial categories. That's the problem — and why claims get denied.
Homeowners policies exclude commercial use
The moment you accept payment from a guest, your homeowners carrier can deny the claim. Vacation rentals are commercial operations in the eyes of every major insurer.
Landlord policies assume long-term tenants
Landlord forms are underwritten for 12-month leases — not weekly turnovers with new guests, higher wear-and-tear, and different liability profiles.
Stacking policies creates gaps and overlap
When you combine a homeowners policy, a landlord endorsement, and a commercial rider, you get conflicting terms, coverage disputes, and premium waste. One purpose-built program eliminates all three.
Everything your vacation rental portfolio needs
Each property in your portfolio gets the same comprehensive coverage — property, liability, guest damage, and business income — under one set of terms.
- Building and structure — replacement cost, not ACV
- Contents and furnishings — including high-value items
- General liability — $100K to $1M per occurrence
- Guest-caused damage — no sub-limit, no deductible games
- Business income — lost revenue while a property is out of service
- Extra expense — additional costs to maintain operations during a loss
One program, not five policies
Property, liability, guest damage, business income, and specialty endorsements — all under one program with one renewal date and one claims process.
Built for portfolios
Add or remove properties at any time. Velaris syncs with 80+ property management systems so your coverage always matches your actual inventory.
Transparent pricing you can model
Guest-paid damage coverage, homeowner-paid liability, and company-level policies — each priced separately so you can see exactly where the cost sits.
2-day claims on guest damage
Guest damage claims are reviewed and paid within 2 business days. No waiting 30 days for a platform to decide whether to reimburse you.
Endorsements for the risks standard policies ignore
Vacation rentals face risks that generic commercial policies weren't designed to cover. These endorsements fill the gaps that matter most to professional operators.
Covers treatment, cleaning, and lost revenue when a bed bug issue takes a property offline. Most standard policies explicitly exclude this.
Legal costs and property damage when a guest refuses to leave or an unauthorized occupant takes over. A growing problem in longer-stay vacation rentals.
For properties that provide alcohol as an amenity or operate near event venues. Covers bodily injury and property damage arising from alcohol-related incidents.
Additional liability limits above your primary policy for operators with high-value properties or large portfolios where a single catastrophic event could exceed base limits.
Frequently asked questions
What's the difference between vacation rental insurance and a homeowners policy?
A homeowners policy covers your primary residence and excludes commercial activity. Vacation rental insurance is a commercial policy designed for properties rented to transient guests. It covers risks that homeowners policies don't — like guest damage, business income loss, and the higher liability exposure that comes with hosting strangers in your property.
Can I cover my entire portfolio under one program?
Yes. Velaris is designed for multi-property operators. Your entire portfolio — whether it's 10 properties or 500 — goes under one program with consistent terms, a single renewal, and one claims process. Properties can be added or removed at any time through your PMS integration.
Does vacation rental insurance cover bed bugs?
Standard commercial policies typically exclude bed bugs. Velaris offers a bed bug remediation endorsement that covers treatment costs, deep cleaning, guest relocation, and the lost revenue while your property is being treated. It's one of the most requested add-ons for vacation rental operators.
How does Velaris handle guest damage differently?
Most policies either exclude guest damage or cap it at $5,000-$10,000. Velaris covers guest-caused damage with no sub-limit — including intentional damage, pet damage, and smoke remediation. Claims are processed in 2 business days, and the cost is built into a per-night fee paid by the guest.
What if a homeowner already has their own insurance?
Homeowners can upload their existing policy to opt out of Velaris liability coverage, as long as their policy meets your program's minimum requirements. Velaris monitors third-party policies for compliance so you don't have to chase owners for updated declarations pages.
Is vacation rental insurance required by law?
Requirements vary by jurisdiction. Many cities and counties require proof of commercial insurance as a condition for a short-term rental permit. Some HOAs and condo associations mandate minimum liability limits. Even where it's not legally required, lenders and property owners increasingly expect it as part of professional management agreements.
Works with your PMS
Ready to simplify your vacation rental coverage?
One program. One renewal. One claims process. Talk to us about what that looks like for your portfolio.
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