Vacation rental

Owning a short-term rental property comes with many responsibilities, including finding the right short-term rental insurance policy to protect you and your guests from unforeseen accidents and instances. 

Many owners assume their current homeowner’s insurance policy carries over to their short-term rental properties for coverage. Unfortunately, this isn’t the case most of the time. Instead, to protect their business and property, they decide to take out a short-term rental insurance policy

Short-term rental insurance is like any insurance in that there are many options to choose from and research to be done. To make your search for insurance for vacation rentals easier, we’ve compared two of the most popular companies: CBIZ and American Family. 

In this article, we’ll discuss:

  • What short-term rental insurance is
  • Why short-term rental insurance is important
  • An overview of CBIZ and American Family
  • Policy coverage for each company
  • Price comparison between the two

Hopefully, by the end of this article, we will have cut down your research time when deciding between CBIZ and American Family vacation rental insurance. 

Without further ado, let’s dive into these two short-term rental insurance policies! 

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What is Vacation Rental Home Insurance?

Throughout this article, we’ll use the phrases short-term rental insurance and vacation home rental insurance interchangeably. 

They both refer to an insurance policy to protect a home which you rent out for short periods throughout the year to vacationers and short-term guests. 

Now, what exactly is vacation rental home insurance? This type of insurance protects property owners from accidents and damages that guests could cause. Consider it a supplement to your current homeowners, landlord, or condo insurance. 

A vacation home rental insurance policy will cover incidents specifically related to renting your home to short-term guests. 

What Does a Short-Term Rental Insurance Policy Cover?

There are three primary protections a short-term rental insurance policy offers to vacation homeowners. 

1. Property Protection - Not only is the structure of your property covered from damages but your personal property, including furniture and fixtures, is protected as well. You never know when hail will damage your roof or a guest will damage your walls.

2. Liability - In the event of an accident where you could be held liable, your insurance can cover any legal and associated costs to resolve the dispute.

3. Loss of Income - Your short-term rental property is a business that produces income. This insurance policy could protect against any income loss due to damages, accidents, or last-minute guest cancellations. 

Many policies include an option to add extra insurance coverage, including fire, flood, and even employee liability, if you hire caretakers for your property. 

CBIZ vs. American Family - A Brief Overview

Two of the most popular vacation home rental insurance providers are CBIZ and American Family. They are both reputable companies that have been in the insurance business for decades. However, each provides its own benefits. 

In this section, we will give a brief overview of each company with a quick background and explanation of their services.

Short-term  rental insurance policy coverage

CBIZ Vacation Rental Insurance

CBIZ Vacation Rental Insurance is a subsidiary brand of CBIZ, Inc. They focus solely on providing owners with short-term rentals protection and insurance policies. 

Founded in 2002, CBIZ was the very first to create an insurance policy just for short-term rental properties. They operate in all 50 states and received an A+ rating from the Better Business Bureau

CBIZ Vacation Rental Insurance offers comprehensive coverage in their policies and is the largest vacation rental insurance provider in the nation. 

American Family Insurance

American Family Insurance offers a Vacation and Second Home Insurance policy as one of their many homeowner’s insurance options. This company handles many types of policies, including auto, home, renters, and life insurance. 

Founded in 1927, American Family Insurance operates in 19 states including Arizona, Kansas, Ohio, Colorado, Minnesota, Oregon, Idaho Missouri, South Dakota, Illinois, Nebraska, Utah, Indiana, Nevada, Wisconsin, Iowa and North Dakota.

They also received an A rating from the Better Business Bureau. They are dedicated to giving back to their communities and are passionate philanthropists as well. 

Damage to vacation home for insurance to cover

Vacation Rental Home Insurance Policy Coverage

It’s no secret that the most challenging part of shopping for an insurance policy is searching for one with just the proper coverage. Since everybody’s situation is unique, companies usually allow customization to their policies. 

In this section, we’ll compare the policy coverage of both CBIZ and American Family Insurance so you can quickly understand if one is right for you.

CBIZ Vacation Rental Insurance Coverage

As the very first insurance policy specifically for vacation rentals, CBIZ offers comprehensive coverage for owners. 

Of course, they cover the main points we discussed in the above section, but they also offer other coverage options. Below, you’ll find exactly what CBIZ covers with their policies.


Coverage for damage to the property and additional structures and their replacement costs

Commercial General Liability

Legal and associated costs during a liability suit with a guest

Business Income

Coverage for the loss of income due to damages, delays in repairs, or cancellations from guests

Personal Property 

Coverage for damage or theft of personal property and fixtures within the property, plus anything within 100 feet of the structure

Customizable Coverage

Policyholders can add coverage to pools, kayaks, or activities they host for their guests at their vacation rental

As you can see, CBIZ Vacation Rental Insurance offers the core coverage for owners of a short-term rental property. However, they give customers the option to add extra coverage to their policies as they see fit. 

American Family Insurance Policy Coverage

American Family Insurance actually offers two types of insurances for those who own a second home or short-term rental property. These two policies are known as Vacation and Second Home Insurance and Temporary Rental Insurance

The Temporary Rental Insurance is perfect for those who rent or leave their home for no more than two months out of the year. This insurance policy only covers 62 days out of the calendar year. 

The Vacation and Second Home Insurance is better for those who consistently rent out their second property to short-term guests as it is more business and landlord-focused. 

Below, you’ll see the types of coverage offered through a vacation rental insurance policy with American Family Insurance. 


Coverage of damage to the property’s structure and repair costs

Personal Property

Protection of personal property from damage caused by guests and theft

Flood Insurance

Coverage for flooding of your property - recommended if the property is near a body of water

Hidden Water Damage

Leaks or other damages caused by hidden water in the property are covered

Umbrella Insurance Coverage

Provides more liability protection and covers outstanding costs that aren’t covered by your homeowner’s insurance

American Family’s Vacation and Second Home Insurance covers the main aspects of a quality insurance policy and also offers add ons such as flood and hidden water damage insurance.

Price Comparison

Let’s get down to what you really want to know - price. 

When talking about insurance policies, everything sounds great until we get to that small detail about the price. 

Keep in mind that the best way to get an accurate price comparison is to request a quote directly from the insurance company. 

There are so many factors that go into the creation of a quote, including the location of your home, the type of coverage you want, how often it’s vacant, and more. 

To get a price for an insurance policy with CBIZ, you’ll have to contact them directly or request a quote on their website as they don’t list prices on their website.

American Family Insurance estimates that vacation rental home insurance roughly costs about $2,000 to $3,000 per year. However, this is subject to change. 

To make the cost a little more manageable, American Family Insurance does offer a Diminishing Deductible Coverage. So, each year you renew your policy, you’ll receive a discount on your deductible. 

Which Short-Term Rental Insurance is Right for You?

In this article, we’ve compared two popular short-term rental insurance companies, CBIZ Vacation Rental Insurance, and American Family Insurance. 

Both companies offer the basic necessary coverage you need as a vacation rental owner. However, they also both provide different customizations to their policies. 

Below, you’ll find a chart with a quick comparison of the two companies:

CBIZ Vacation Rental Insurance

American Family Vacation and Second Home Insurance

Offers Basic Coverage

Offers Basic Coverage

Option to Add Coverage

Option to Add Coverage

Only Sells Short-Term Rental Insurance

Sells Multiple Types of Insurance

Available in All 50 States

Available in 19 States

No Known Discounts

Diminishing Deductible Discount

Quote Determined by CBIZ

Quote Determined by Third Party Service

 As with any insurance shopping experience, it is best to contact an agent from the insurance companies you are interested in to get a quote and customize your policy as needed. 

All in all, both of these companies offer great, reliable insurance for vacation home rentals. 

If you’re looking for an insurance company that only focuses on short-term rental insurance and adds coverage for additional activities your guests may participate in while renting your property, CBIZ could be a good choice. 

Maybe you prefer to bundle your insurance policies such as homeowners, auto, and short-term rental to get a discount, then American Family Insurance would be a better choice. Not to mention, they offer two short-term rental insurance plans so you can choose the one that’s right for your situation. 

Unfortunately, insurance isn’t one-size-fits-all, and you’ll have to do your own research and experimentation. However, we hope that you found value in this comparison of CBIZ and American Family Insurance was helpful in your search for short-term rental insurance.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today! 

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