Owning a vacation rental in Oregon is exciting. However, it also comes with real responsibilities. One of the most important? Making sure you have the right insurance.
If you list your home on Airbnb, Vrbo, or any other platform, regular homeowner’s insurance won’t be enough. Instead, you need specialized short-term rental (STR) insurance. In this guide, we’ll explain what kind you need, what Airbnb covers, and how to stay compliant with Oregon’s local rules.
Why Homeowners Insurance Isn’t Enough
Many homeowners assume their standard policy will protect them. Unfortunately, it usually won’t.
If a guest slips and falls or causes a kitchen fire, your claim might be denied. That’s why you need STR insurance built specifically for vacation rentals. It protects both your home and your financial future.
What Type of Insurance Do You Need?
Here’s a breakdown of the essential coverage types:
Property & Contents Protection
This covers the structure and everything inside—from furniture to appliances. Most policies use replacement cost, which means you’re fully covered for repairs or new items.
Commercial Liability Insurance
You’ll need at least $1 million in coverage. This protects you if a guest or visitor gets hurt or their property is damaged.
Business Income Insurance
If your rental becomes unusable due to a fire, storm, or other covered event, this helps recover your lost income. This helps you cover the mortgage if your property can’t be rented due to damage.
Extra Protection for Guest Issues
Look for policies that cover:
- Pet damage (with no breed restrictions)
- Unintentional guest damage
- Bed bug treatment
- Legal costs if squatters won’t leave
- Liability for amenities like hot tubs or bikes
What Airbnb’s Insurance Does and Doesn’t Cover
Airbnb offers basic protection through its AirCover program. It’s a good start, but it’s not enough. Especially if you plan to rent on other platforms.
AirCover Includes:
- Guest injuries or third-party claims
- Damage or theft involving guest belongings
- Damage to shared building areas
But It Doesn’t Cover:
- Damage to your personal property
- Business income loss
- Intentional acts
- Many liability risks
In other words, AirCover helps—but it doesn’t replace a full STR policy.
What Oregon Vacation Homeowners Need to Know
Unlike some states, Oregon doesn’t have a single set of STR rules. Instead, each city and county creates its own.
To stay legal, make sure you meet these common requirements:
- Get a business license (especially in places like Portland, Eugene, and Bend)
- Register for transient lodging taxes (state and city)
- Pass fire and safety inspections
- Follow occupancy limits and parking rules
Some cities—like Portland—require the owner to live on-site most of the year. Others, such as Bend, focus on permit spacing and annual renewals.
How Taxes Work
Oregon charges a 1.5% state lodging tax. Most cities and counties charge more on top of that.
Although platforms like Airbnb may collect and pay some of these taxes, the responsibility ultimately falls on you. Make sure you double-check what’s being collected and what still needs to be paid manually. Different platforms cover different jurisdictions. Some may only pay state but not county etc. At Cascadia Getaways, we handle this for our homeowners.
Why Cascadia Getaways Recommends Proper Insurance
At Cascadia Getaways, we recommend Proper Insurance. It’s built specifically for short-term rental owners—and it works well in Oregon.
Their policies include:
- Full replacement cost coverage
- $1 million+ in liability protection
- Lost rental income due to covered damage
- Protection for pet and guest-related damage
- Coverage for squatter legal fees
- Amenity liability and optional liquor liability
Proper Insurance is underwritten by Lloyd’s of London, a trusted global provider.
FAQ: STR Insurance and Airbnb in Oregon
Do I still need insurance if I only use Airbnb?
Yes. Airbnb’s coverage is limited and doesn’t include major risks. You’ll need full STR coverage for peace of mind. If you want to maximize your income and rent on more than one platform that is another plus in the need insurance column.
What’s the minimum insurance requirement in Oregon?
Many cities require at least $1 million in liability insurance to approve your STR permit.
Can I use homeowner’s insurance if I rent just a few weekends a year?
No. Even occasional rentals usually fall outside your homeowner’s coverage. STR insurance protects you year-round.
Does Cascadia Getaways require specific insurance?
Yes. While we handle guest communication and operations, you must carry proper STR insurance to protect your home.
Protect Your Property the Smart Way
Running a vacation rental in Oregon can be rewarding. But to succeed long-term, you must protect yourself with the right insurance.
Don’t rely on guesswork or generic coverage. With STR insurance, you’ll protect your income, your property, and your peace of mind.
Ready to take the next step?
Learn how Cascadia Getaways helps you earn more with less stress.