Standard homeowner’s insurance does not cover short-term rental operations. Renting your Tallahassee home to paying guests creates liability exposure your homeowner’s policy was not written for, and most carriers consider STR operation grounds for canceling the policy entirely if they discover it. This guide covers what STR insurance actually is, what to look for in a policy, and which carriers serve the Florida short-term rental market.
Why Standard Homeowner’s Insurance Doesn’t Work
Homeowner’s policies are written for owner-occupied dwellings. The moment you start renting to paying guests:
- The property is reclassified as commercial/rental for insurance purposes
- Liability claims from guests aren’t covered (slip-and-fall, dog bite, food allergy)
- Property damage caused by guests isn’t covered
- Income loss from cancellations or guest-caused inhabitability isn’t covered
- Major theft from a guest is typically not covered
Worse, many carriers will cancel the policy retroactively if they discover undisclosed STR use during a claim, leaving you uninsured for damage that has nothing to do with the rental.
STR Insurance Options
Dedicated STR Insurance Carriers
Specialty carriers offer policies built for short-term and vacation rental operations:
- Proper Insurance, comprehensive coverage including building, contents, liability, business income, theft, and structure-while-vacant. Premiums roughly $1,500–$3,500/year for Florida STRs.
- Steadily, competitor with similar coverage structure, often slightly cheaper for smaller properties.
- Slice / CBIZ, pay-per-night options, better for low-volume operators.
- Foremost Insurance, more traditional carrier with vacation rental endorsements.
Endorsements on Existing Policy
Some carriers offer “vacation rental endorsements” on standard homeowner’s policies. Cheaper than full STR coverage but typically have lower limits and less comprehensive liability. Verify booking limits per year and per stay.
Platform Coverage (Don’t Rely on This)
Airbnb’s Host Damage Protection covers up to $1M in property damage per stay; Vrbo has similar coverage. Useful but inadequate as primary insurance, limited to specific scenarios, doesn’t cover off-platform bookings, and excludes wear-and-tear damage that adds up over hundreds of stays.
What Coverage to Look For
- Building dwelling coverage, replacement cost basis, not actual cash value
- Personal property coverage, for the furnishings inside (separate from dwelling)
- Liability coverage, at minimum $1M; many operators carry $2M
- Business income / loss of rents, covers vacancy if the property is uninhabitable due to a covered loss
- Hurricane / wind, separate deductible (Florida-specific). 2–5% of dwelling value is typical.
- Flood, separate policy in flood-prone areas; check FEMA flood zone
- Theft from guests, confirm this is covered, not just damage
- Pet liability, if you allow pets, confirm pet bite/damage coverage
- Pool / hot tub liability, if applicable, important for higher liability limits
Florida-Specific Considerations
- Hurricane deductibles are separate and percentage-based, typically 2–5% of dwelling value, not a flat dollar amount. For a $400,000 home that’s $8,000–$20,000.
- Roof coverage, Florida policies often have actual cash value (not replacement cost) for roofs over 10 years old. Critical for hurricane-prone areas.
- Sinkhole coverage, Florida policies typically include catastrophic ground cover collapse but exclude general sinkhole. Add coverage if your property is in a higher-risk area.
- Citizens Property Insurance, state-run insurer of last resort. Avoid if a private carrier will take you; their pricing has gotten aggressive in recent years.
When to Add Umbrella Liability
If you operate multiple properties or have significant personal assets, an umbrella liability policy ($1M–$5M) sitting on top of your STR liability and personal liability provides a meaningful additional layer for ~$300–$700/year. Worth it for any operator with 2+ properties.
Operating a Tallahassee STR or MTR and want help with insurance and operations? Talk to us about co-hosting or sublease, we carry comprehensive liability coverage on properties we manage. See our DBPR license guide for the regulatory side.