The STR Insurance Guide

From the Wyo Stays team — a licensed Wyoming real estate brokerage. Educational information, not insurance, legal, or tax advice. Coverage is specific to your policy and situation; confirm with a licensed insurance agent.

The mistake that shows up only when it's too late

Insurance is the one line owners are tempted to skimp on — because most of the time nothing happens. Then something does: a guest slips on the ice, a pipe bursts mid-stay, a kitchen fire, a liability claim. And that's when owners discover the coverage they thought they had doesn't apply to a rental.

Let's make sure that's not you.

Three layers of coverage — and the gaps between them

1. Your homeowner's policy — usually the wrong tool. A standard homeowner's policy is written for you living in the home, and most exclude "business use." Running transient lodging can void coverage exactly when you need it. Some carriers offer a home-sharing endorsement, but it's often limited. Don't assume; ask your carrier in writing.

2. Platform protection (AirCover/Vrbo) — a backstop, not a policy. These are secondary protections tied to platform bookings. Two hard limits: they generally don't cover your direct bookings at all (and direct is where your margin lives), and they're not a substitute for your own liability and property coverage. Treat them as a bonus, not a foundation. (See AirCover vs. a Real Commercial Policy.)

3. A commercial STR policy — the actual foundation. A purpose-built short-term-rental policy (or a properly endorsed landlord/STR policy) is designed for exactly what you're doing: paying guests, frequent turnover, business income.

What a proper STR policy should include

• Commercial general liability with limits that match your asset (guest injuries, lawsuits) — often paired with an umbrella for extra headroom.
• Property/dwelling coverage at accurate replacement cost, including contents/furnishings.
• Business income / loss-of-use — pays lost rental income if a covered event takes the property offline.
• Coverage that applies to all booking channels — direct and OTA, not just platform stays.
• Bed-bug, vandalism, and guest-caused damage provisions where available.
• Adequate coverage for special features — hot tubs, wood stoves, and outbuildings can need specific attention.

Wyoming-specific things to raise with your agent

• Winter/freeze losses — burst pipes are a leading cold-climate claim. Confirm they're covered and understand any occupancy/heat-maintenance conditions.
• Wildfire — for foothill and rural Bighorn properties, ask directly about wildfire coverage and any defensible-space requirements. (See Wildfire-Season Readiness.)
• Detached structures & land use — barns, cabins, and acreage may need to be scheduled.
• Hot tubs & recreation — a top liability item; make sure it's addressed.

Lower your premium (and your risk) at the same time

Insurers increasingly reward smart-home safety devices — leak/water sensors, smoke and CO detectors, and monitored systems can reduce both claims and premiums. (See Smart-Home Safety Devices & Insurance Discounts.)

Your STR insurance checklist

1. ☐ Confirmed in writing whether your homeowner's policy allows rental use
2. ☐ A commercial STR (or properly endorsed) policy in force
3. ☐ Liability limits that match the asset — plus an umbrella if warranted
4. ☐ Coverage applies to direct bookings, not just OTA
5. ☐ Business-income / loss-of-use included
6. ☐ Winter/freeze and (if applicable) wildfire coverage confirmed
7. ☐ Hot tub and detached structures addressed
8. ☐ Safety devices installed (and reported for any premium credit)

Insured, licensed, and accountable

Wyo Stays operates as a fully insured, licensed Wyoming brokerage, and we make sure the properties we manage are properly covered and their risk minimized — because it's our name on the door too.

→ Unlock the coverage checklist, or → get a free property evaluation.

Educational information only — confirm all coverage with a licensed insurance professional.