If you’re running, or even thinking about running, a short-term rental, there’s one topic I will never gloss over with my clients:

Insurance.

Specifically, STR-specific homeowners’ insurance.

I’ve seen too many well-meaning owners assume their regular homeowners policy has them covered, only to find out after something goes wrong that it absolutely does not. And in short-term rentals, “something going wrong” doesn’t have to be dramatic, it can be a guest accident, a denied claim, or a coverage gap you didn’t even know existed.

If you’re serious about protecting your investment (and your future), here’s why I strongly recommend STR-specific homeowners insurance, and why I point owners to Proper Insurance again and again.

The Biggest STR Insurance Myth I Hear as a McCall, Idaho Realtor

“I have homeowners insurance, so I’m good.”

This is one of the most expensive assumptions a short-term rental owner can make.

Standard homeowners insurance is designed for owner-occupied, long-term living. The moment you introduce short-term guests, especially paying guests, you’re operating a business. And most traditional policies either:

• Exclude short-term rental activity entirely
• Limit coverage to long-term tenants only
• Deny claims related to guest use
• Cancel policies once STR activity is discovered

This matters whether you own one cozy cabin or a growing portfolio. As a McCall Idaho Realtor who works with buyers investing in vacation rentals, insurance is one of the first conversations I insist on having, before keys are handed over.

Why STR-Specific Homeowners Insurance Is Different

STR-specific homeowners insurance is designed specifically for properties that host short-term guests. That means the policy expects:

• Frequent guest turnover
• Unrelated occupants
• Higher liability exposure
• Commercial-level risks

Instead of trying to squeeze your rental into a policy not designed for it, STR-specific coverage meets your property where it actually operates.

This is especially important in vacation markets like McCall, where cabins often have hot tubs, fireplaces, decks, snow loads, and seasonal use, all of which increase risk.

Why I Recommend Proper Insurance for Short-Term Rentals

When clients ask me who to call, Proper Insurance is my go-to recommendation for STR-specific homeowners insurance.

Here’s why.

1. Coverage Built Specifically for Short-Term Rentals

Proper isn’t retrofitting a homeowners policy. Their coverage is purpose-built for short-term rentals, combining:

• Commercial property coverage
• General liability protection
• Business income coverage

All under one policy.

That matters because platforms like Airbnb and Vrbo do not replace real insurance. Their “host guarantees” are limited, conditional, and not something I ever recommend relying on as your primary protection.

2. High Liability Limits (Because Guests Are Unpredictable)

In short-term rentals, you’re not hosting friends, you’re hosting the public.

Proper offers liability coverage up to $1M or more, which is critical if:

• A guest slips on icy steps
• Someone gets injured in a hot tub
• A fire or water issue impacts neighboring properties

These scenarios are rare—but when they happen, they’re expensive. STR-specific homeowners insurance provides real protection, not just hope.

3. Protection Against Guest Damage and Lost Income

One of the most overlooked parts of STR insurance is loss of income coverage.

If your property becomes uninhabitable due to a covered claim, Proper can help cover:

• Repair costs
• Lost rental income during downtime

For investors who rely on STR income to offset mortgages or fund lifestyle goals, this coverage is huge.

4. It Keeps You Compliant With Lenders and Cities

More and more lenders and municipalities are asking for proof of appropriate STR coverage.

Having STR-specific homeowners insurance:

• Helps satisfy lender requirements
• Supports local compliance
• Protects you if regulations shift

In resort markets, this is becoming less optional and more expected.

Final Thoughts From a McCall, Idaho Realtor

If you’re buying or already own a short-term rental, STR-specific homeowners insurance isn’t an upgrade—it’s a requirement.

I recommend Proper Insurance because their policies are built specifically for the realities of short-term rentals, not adapted after the fact. When something goes wrong—and eventually, something always does—you want coverage that’s clear, comprehensive, and designed for exactly what you’re doing.

If you’re investing in McCall, Idaho real estate, or planning to launch your first STR, this is one of the smartest foundational decisions you can make.

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About the Author

I’m Ragan Erickson, a McCall, Idaho–based Realtor® and short-term rental coach helping people build wealth and memories through real estate. After moving from Southern California’s mountains to Idaho’s, I turned my love for small-town living and data-driven investing into a business that helps others do the same.

On my blog, you’ll find tips for buying and selling in McCall, launching profitable short-term rentals, and designing a lifestyle you don’t need a vacation from. Whether you’re dreaming about your first cabin, an STR portfolio, or a full-time move to the mountains, you’re in the right place.

📬 Connect with me: yahooidaho.com | Instagram | TikTok
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*Some links in the post are affiliate links. I only recommend products I use.