Safely Homeowners Insurance Review: Peace of Mind for Short-Term Rentals

This homeowner insurance is a good fit for: Homeowners who want a dedicated commercial policy to cover short-term vacation rentals.

Safely offers homeowners insurance for hosts, homeowners, and property managers of short-term vacation rentals. Available in all 50 states, Safely insurance is specifically designed to give homeowners peace of mind while hosting guests in a commercial context. See if Safely homeowners insurance is the right fit for your property in our full review.

Top perks

Focused coverage for the unique challenges of short-term rentals

Safely's homeowner insurance is specifically designed for short-term rentals. As such, it focuses on the main source of damage in these situations: the guests. This means homeowners will have coverage for most kinds of guest-caused damage, including pet damage, intentional destruction, and -- my favorite -- "stupidity."

Coverage limits are competitive, with up to $1 million for guest-caused structural damage and up to $1 million in homeowner and property manager liability coverage for guest injuries. There's also coverage for personal property stolen or damaged by guests of up to $10,000 for homeowners (up to $25,000 for property managers).

Available in all 50 states and D.C.

You can get a Safely policy no matter where your rental property is located, as they operate in all 50 states. Safely also operates in Washington D.C., Puerto Rico, and the U.S. Virgin Islands.

Quick claims filing and payments

Filing a claim with Safely can be done entirely online. Claims are filed for a specific reservation, and scans of your invoices and quotes can be uploaded as you file. (As is typical, some claims may require an inspection prior to payment.)

Speaking of payments: A quick turnaround on your insurance payment is always important, but it can be especially key when you need to deal with damages before your next renter arrives. Safely says most claims are paid in less than a week, and claims under $1,000 are often paid out within 48 hours of approval.

Complimentary guest screening

Automated guest screening can be included with your short-term rental policy. Safely's guest screening uses the guest's name, date of birth, and address to verify their identity. Safely also checks public records, criminal databases, and international watchlists to assess the potential risk of your guests. Each guest is then assigned a risk score. Safely says it follows the Fair Credit Reporting Act (FCRA) reporting standards, reducing your legal risk if you decide to cancel a reservation based on the guest screening results.

What could be improved

Narrow policy means weather and other common homeowners inclusions are not covered

One of the great things about Safely coverage is that it's tailored to the needs of short-term rental hosts. But that specialized service also means a lot of common things you'd find in a homeowners policy aren't covered -- and yes, this includes damage from weather events.

In other words, Safely insurance definitely does not replace your regular homeowners insurance. It's a standalone commercial policy to cover short-term rentals, and you get it in addition to traditional homeowners coverage.

No instant online quote

If you're intrigued by Safely's offering and want a quote -- well, you might have to wait. As of now, you can't hop online and get an instant quote. Sure, you can go to Safely's website, where there is a quote form. But when you submit it, you get the message that someone will contact you about your quote. For busy hosts and homeowners, having to jump through extra hoops for a quote can be a big drawback.

If you want an experienced insurer with a huge network: Allstate not only offers competitive home insurance policies, but you can also get an additional rider that adds coverage for home-sharing hosts. While not the highest-rated insurer in some regions, Allstate regularly beats out national competitors for customer service.

If you want all of your insurance from one company: Nationwide is one of the largest insurers in the country with a wide variety of coverage types. If you want to keep everything in one place, you can simply add a vacation rental policy rider to your regular Nationwide home insurance policy. Alternatively, you can get a standalone commercial or business liability policy.

Safely works on a pay-as-you-go platform. This means you only need to pay when you need coverage (i.e., for the nights you have guests). In contrast, other insurers may charge you a flat annual fee regardless of how often you book guests.

The downside to pay-as-you-go coverage is that it's hard to estimate your annual costs ahead of time. The upside, however, is that you can more easily add that extra cost to your nightly rates.

You can contact Safely for a customized quote through the online form (there are no instant quotes). According to Safely's blog, "The average annual cost of short-term rental insurance ranges from $2,000 to $3,000."

Safely doesn't currently advertise any discounts on its website. You can contact a representative to see if you qualify for any special discounts.

Personal injury

Having coverage in case something breaks or is stolen is vital. But it's just as -- if not more -- important to have protection in case a guest is injured on your property. Safely offers up to $1 million in homeowner liability coverage in case of guest injuries.

Pet damage

Not all of your guests will be two-legged, so it's important to make sure you're covered in case of damage from guests' pets. Safely users can maintain their pet-friendly properties without worrying about coverage for pet damage.

Intentional acts

No matter how well you screen, you can still wind up with bad guests. Safely covers guest damage even if the damage was intentional.

Theft

Some folks like to take home more than just those tiny bottles of shampoo. A Safely policy can cover the cost if the contents of your rental go missing.

Stupidity

According to Safely, "vacation brain" can be the root of all sorts of accidental damage. So, Safely covers a wide variety of guest-inflicted damage even if the reason was "silly" -- or downright stupid.

You can start the process for getting a Safely short-term rental insurance policy by using the "Get a Quote" button on its website. Fill out your name, email, and phone number, and someone from Safely will contact you about a quote.

Safely is a fairly new home insurance company, so there currently aren't many external customer reviews. The Safely website does provide a few glowing testimonial quotes.

Safely insurance is ideal for:

• Homeowners who have a short-term rental property.
• Homeowners who need a commercial policy to protect against guest damage, theft, or personal injury.
• Homeowners that are not looking to replace their regular homeowners policy.

But homeowners looking for a policy from a more experienced insurer may want to check out Allstate. Or perhaps Nationwide if they want to bundle multiple types of insurance all with one company.