Yes, and here’s why: 

Most vacation rental owners carry either homeowners or landlord insurance policy, both of which have significant coverage gaps. Homeowners insurance is designed for an owner-occupied property, while a landlord policy is designed to be tenant-occupied.

Vacation rentals are different. They typically have three uses throughout the year; rental guest stays, owner’s vacations, and periods of being unoccupied. You need a vacation rental insurance policy that can cover all three.

What we recommend
We recommend Proper Insurance as our preferred comprehensive home insurance vendor in the U.S. The Proper Insurance® policy was designed to address the unique exposure of vacation rentals. It provides comprehensive insurance for your building(s), contents, income, and liability. 

vacation rental insurance
It entirely replaces a homeowner or landlord policy; if you carry the Proper policy, there’s no reason to keep your other insurance in place as you would be "double" insured. It’s offered in all 50 states and Proper’s expert underwriters are here to help. Visit Proper Insurance for more information. 

FAQs

I want to charge my guests for insurance that will cover my property and cancellations, can I?
Vrbo does not permit Property Managers to market their own damage insurance and/or travel insurance on our platform.

My agent told me I have a rental rider on my homeowners policy. Is that the same as this?
Some insurance carriers will offer a rider that allows for “occasional” rentals and offer limited property and liability coverage. The problem is limited coverage, and most vacation rental properties have guests “regularly” not “occasionally”, so virtually any claim could be denied and is subject to carrier interpretation. If you regularly rent your vacation property, then you need business insurance.

Do I need two separate policies; one for when I’m renting my place, and one for when I’m not?
No, the Proper Insurance policy is comprehensive; there is full coverage in place whether it's being rented, vacant, and/or being used by the owner or their guests. It is designed for vacation rentals that are either second homes or that double as primary residences. It entirely replaces a landlord or homeowners policy. If you carry the Proper policy, there would be no reason to keep your other insurance in place as you would be "double" insured.