Millions of Americans will book short-term rentals this summer, but guests and homeowners alike should understand their responsibilities before the keys change hands

LOS ANGELES, July 14, 2026 /PRNewswire/ -- Vacation rentals have become a staple of summer travel, with millions of Americans choosing homes, condos and cabins over traditional hotels. While property damage during short-term rentals is relatively uncommon, Mercury Insurance (NYSE/NYSE TX: MCY) says the financial consequences can be significant when guests or homeowners misunderstand what they're responsible for before a stay begins.

Whether you're booking a weekend getaway or renting out your home to travelers, taking a few simple steps before check-in can help prevent costly surprises if something goes wrong.

"Most vacation rentals end exactly the way everyone hopes they will, with great memories and no issues," said Adam Bakonis, Senior Product Manager, State (Property) for Mercury Insurance. "The problems we see usually aren't caused by bad intentions. They're caused by assumptions about who's responsible for damage, liability or personal property. A little preparation before the trip can go a long way."

Five vacation rental misconceptions that can create expensive surprises

Myth No. 1: The homeowner's insurance covers everything.

A homeowner's policy may not automatically cover every situation involving a short-term rental. Coverage depends on the policy and how the property is being used. Likewise, guests should not assume the owner's insurance protects their personal belongings if they're damaged or stolen during a stay.

Myth No. 2: The rental platform's protection plan replaces insurance.

Many booking platforms offer host protections or guest guarantees, but those programs often have eligibility requirements, exclusions and claim limits. Travelers and property owners should understand what those programs do—and don't—cover before relying on them.

Myth No. 3: Small damage isn't worth documenting.

Whether it's a broken lamp, stained furniture or accidental damage to flooring, documenting issues immediately with photos and notifying the host can help prevent disputes after checkout. Homeowners should also photograph the condition of their property before guests arrive.

Myth No. 4: Safety is only the homeowner's responsibility.

Hosts should make sure smoke alarms, carbon monoxide detectors and door locks are working properly before welcoming guests. Travelers should familiarize themselves with exits, emergency contact information and any unique features of the property shortly after arriving.

Myth No. 5: House rules are just suggestions.

Parking restrictions, occupancy limits, pet policies and pool rules aren't just courtesy guidelines. Following them can reduce liability risks, avoid property damage and help ensure insurance claims aren't complicated by avoidable violations.

Before you book—or before you host

Mercury recommends a few additional best practices for both sides of the transaction:

For guests

Review the listing carefully before booking.
Understand cancellation policies and security deposit requirements.
Photograph any existing damage upon arrival.
Secure valuables and lock doors and windows when leaving.
Confirm whether your homeowners or renters insurance provides protection for personal belongings while traveling.

For homeowners

Confirm you have the right policy type and/or policy endorsements to provide coverage for a vacation rental. Many standard Homeowners and Landlord policies include limitations or exclusions for short-term rentals, so an endorsement or a change in policy may be necessary to ensure you have the proper coverage.
Review your insurance coverage before offering your home as a short-term rental.
Remove or secure valuables, financial documents and irreplaceable items.
Test smoke alarms, carbon monoxide detectors and smart locks.
Provide guests with emergency contact information and clear house rules.
Document your property's condition before and after each stay.

"Vacation rentals have made travel more flexible than ever," Bakonis said. "Taking a few minutes to understand your coverage and your responsibilities before a trip can help everyone spend less time worrying about what could happen and more time enjoying their vacation."

About Mercury Insurance

Mercury Insurance (NYSE/NYSE TX: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on LinkedIn, Instagram or Facebook.

Media interested in receiving updates from Mercury can learn more at the Mercury Newsroom.

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SOURCE Mercury Insurance