Turning your lake house into a vacation rental can be exciting—and profitable. But here’s the truth: one slip, one accident, or one “oops” moment without the right insurance in place, and suddenly that dream investment feels a whole lot riskier.
Don’t worry, this isn’t about scaring you. It’s about making sure you’re covered, confident, and free to enjoy the upside of renting out your property without losing sleep over the what-ifs.
Why Standard Homeowner’s Insurance Isn’t Enough
Most lake house owners assume their current policy has them covered. Unfortunately, that’s usually not the case. Traditional homeowner’s insurance is designed for—you guessed it—homes you personally live in.
Once you start renting to guests, even just a few weekends a year, many providers consider it “business use.” That means if something happens (say, a guest slips on icy steps or damages the dock), your claim could be denied.
And let’s face it—having insurance that doesn’t actually insure you isn’t much help.
What Short-Term Rental Insurance Actually Covers
Here’s where short-term rental (STR) insurance comes in. The right policy is designed with the vacation rental world in mind, covering the kinds of risks that standard homeowner policies don’t.
Typical coverages include:
- Guest-caused damage (yes, even the “my toddler colored on your wall with permanent marker” kind)
- Liability if someone gets hurt on your property
- Lost income if damage makes your home un-rentable for a stretch
What’s usually not covered? Normal wear and tear, poor maintenance issues, or intentional damage. In other words, insurance will cover the big surprises, but it won’t replace the couch cushions your dog chewed last summer.
Liability Basics: Protecting Yourself and Your Guests
This is where it pays to think big picture. A solid STR policy usually includes at least $1 million in liability coverage—and that should be your baseline.
At Viberent Stays, we require homeowners to carry this level of protection and list us as an additional insured. That way, both you and your management team are shielded if anything unexpected happens. It’s about protecting everyone involved while keeping the guest experience seamless.
The Gray Areas You Might Not Think About
Insurance fine print isn’t exactly beach reading, but it matters. A few examples:
- Personal stays: If you use your home part of the year, make sure your coverage applies whether you or guests are there.
- Amenities: Hot tubs, fire pits, docks, and kayaks are great for guests—but check that your policy actually covers them.
- Local requirements: In some areas, proof of STR insurance is required for licensing. Better to be prepared than scrambling later.
Get Started & Get Covered
So, where should you begin?
- Call your current provider. Ask point-blank if your policy covers short-term rentals. If the answer sounds fuzzy… it’s probably a no.
- Compare specialized STR insurers. Companies like Proper, Steadily, and Safely are built for this exact scenario.
- Work with a property manager who knows the ropes. At Viberent Stays, we walk homeowners through what’s required so you don’t end up guessing—or worse, unprotected.
Protecting More Than Property
At the end of the day, having the right insurance isn’t just about protecting your house—it’s about protecting your peace of mind. With coverage in place, you can focus on what really matters: creating incredible guest experiences and maximizing your rental income.
So if you’re considering turning your lake house into a vacation rental—or you’re already doing it but aren’t sure your insurance checks all the boxes—let’s talk. We’ll help you figure it out and make sure your home, your guests, and your future income are safe and sound.
Quick note: I’m not an insurance agent, just sharing what I’ve learned from managing vacation rentals. Every situation is unique, so definitely check with a licensed insurance provider to make sure you’re covered the way you should be.
