The policy that covers a second home may not cover one that guests rent by the night

Insurance for Orlando short-term rental vacation homes

By David Myers, Broker Associate · MyOrlandoVacationHome.com · Last updated October 2026

A homeowners policy written for a home you live in may limit or exclude coverage when the home is rented to guests, so a short-term rental (STR) needs a policy written for that use. Owners should look at coverage for the building, furnishings, liability to guests and lost rental income. Florida policies carry a separate hurricane deductible, and most homeowners policies do not cover flood. Condo and condotel owners insure their unit's interior and contents, while the association insures the building. Platform programs such as Airbnb's AirCover are not a substitute for your own insurance.

Insurance is one of the first costs a lender asks about and one of the last a buyer shops for. For a vacation rental, waiting is a mistake – the right policy can take time to find, and the quote affects your numbers.

Here is what an Orlando vacation home policy should cover and the gaps owners most often miss.

Does a Standard Homeowners Policy Cover a Short-Term Rental?

Often not fully – policies written for a home you live in can limit or exclude rental use.

Tell the insurer up front that the home will be rented by the night, and get a policy written for that use. A claim on a policy that did not disclose rental activity may be denied. Ask the agent to confirm in writing that guest stays, a management company and the resort's amenities are covered.

What Coverage Should an Orlando Vacation Rental Have?

The building, the furnishings, liability to guests and the rental income you lose after a covered loss.

  • Dwelling: the structure, for a single-family home or townhome.
  • Contents: furniture, linens, electronics and everything a guest uses.
  • Liability: injuries to guests, including at a private pool or spa.
  • Loss of rental income: bookings you lose while the home is repaired after a covered claim.
  • Umbrella: extra liability coverage above the base policy.

No Florida statute or county code we found requires a specific amount of liability coverage for short-term rentals, but your lender, HOA or management company may set its own requirements.

How Do Hurricane Deductibles Work in Florida?

A separate deductible applies to hurricane damage, often a percentage of the dwelling coverage, once per calendar year.

Florida insurers must offer hurricane deductible options that include a flat amount and several percentages of the dwelling coverage. The hurricane deductible applies to all covered hurricane losses in a calendar year, while a separate “all other perils” deductible applies to everything else. A percentage deductible on a large pool home can be a big number, so compare the options against your reserves.

Do You Need Flood Insurance?

Most homeowners policies do not cover flood, and some mortgages require it.

If the home is in a FEMA Special Flood Hazard Area and has a government-backed mortgage, flood insurance is required, and some lenders require it outside those zones. Even where it is optional, a flood policy is worth pricing – Central Florida storms can flood areas outside the mapped zones. Ask for the flood zone during your inspection period.

How Is Condo and Condotel Insurance Different?

The association insures the building; you insure your unit's interior, contents and liability.

Under Florida Statute 718.111(11), a condominium association's property policy must exclude the unit's personal property and items such as floor, wall and ceiling coverings, appliances, water heaters, cabinets, countertops and window treatments. Those are the unit owner's responsibility, so vacation condo and condotel owners carry a unit-owner policy. Read the association's declaration and insurance summary, and ask what the master policy's deductible is, since owners may be assessed for it.

Does Airbnb or Vrbo Coverage Replace Your Own Policy?

No – Airbnb says AirCover for Hosts is not a substitute for personal insurance.

Platform programs can help with guest damage and some liability claims on bookings made through that platform, but they do not cover direct bookings, other platforms or losses unrelated to a guest stay. Treat them as a backstop, and keep a policy of your own.

Contact us to confirm current HOA and Management Company fees before you buy, and get an insurance quote at the same time so both are in your numbers.

Pros, Cons and Our Take

Pros

  • Policies written for vacation rentals cover guest use, contents and lost rental income.
  • Condo and condotel owners share building coverage through the association.
  • Shopping coverage early gives you real numbers before you commit.

Cons

  • Rental coverage can cost more than a standard homeowners policy.
  • Hurricane deductibles and flood exclusions leave gaps owners must plan for.
  • Platform protection is limited to that platform's bookings.

Our Take

Get an insurance quote during your inspection period, not after closing. Use an agent who writes vacation rental policies in Central Florida, disclose the rental use in writing and ask about flood even if the lender does not require it. The quote belongs in your numbers alongside the HOA and management fees.

What Owners Should Know

  • Review the policy every renewal; insurers change terms and deductibles.
  • Keep an up-to-date photo inventory of furnishings for claims.
  • Tell your insurer if you change managers, add a pool heater or spa, or start taking direct bookings.

See our guides to management fees, vacation rental taxes and financing an Orlando vacation home.

Official Sources

Buying or selling an Orlando vacation home? Call/Text David Myers at 407.801.3286 or send us a message.

Frequently Asked Questions

Does homeowners insurance cover a short-term rental in Florida?

Not always. Policies written for a home you live in can limit or exclude rental use. Get a policy written for short-term rentals and disclose the rental use.

Is short-term rental insurance required in Orlando?

We found no Florida statute or county code requiring a set amount, but lenders, HOAs and management companies often require coverage.

Does Airbnb insurance cover my vacation home?

Only partly. Airbnb says AirCover for Hosts is not a substitute for personal insurance, and it applies only to Airbnb bookings.

Do I need flood insurance for an Orlando vacation home?

It is required for homes in a FEMA high-risk flood zone with a government-backed mortgage, and most homeowners policies do not cover flood.

What insurance does a condo owner need?

A unit-owner policy for the interior finishes, appliances, contents and liability. Under Florida law, the association's policy excludes those items.

David Myers is a licensed Florida real estate broker, working as a broker associate with Ziro Realty, and is not an insurance agent. This article is general information, not insurance advice. Coverage and policy terms vary by insurer; confirm them with a licensed Florida insurance agent.