STR Insurance: What Dean Eastman Wants you to Understand

Many short-term rental hosts assume they’re covered because they have homeowners insurance — or because Airbnb offers AirCover. Dean Eastman, a STRASA member and State Farm insurance professional, says those assumptions are some of the biggest gaps in host protection.

“AirCover is great,” Dean explains, “but it’s not actual insurance. It’s basically like a platform protection program that’s secondary.”

In other words, AirCover may provide a layer of support for Airbnb bookings, but it is not a primary insurance policy that replaces proper STR coverage.

“They want you to file against your primary first,” Dean says, “and then AirCover is like a secondary type of thing.”

Dean also points out that AirCover has exclusions hosts don’t always realize until something goes wrong.

“Wear and tear is not on AirCover… certain natural disasters… and intentional damage.”

He shared a San Antonio vandalism case where guests spray painted and damaged the house. “We covered all that,” Dean said.

Why You Need STR-Specific Insurance in the First Place

Beyond AirCover confusion, Dean says the core issue is simple: once you host paying guests, you are no longer using your home purely as a residence.

“A standard homeowners insurance policy is designed for owner-occupied properties,” he explains, “and excludes coverage for business activity — especially short-term stays such as Airbnb or Vrbo.”

State Farm’s approach is to keep the home insured as residential, but with the proper STR protection added.

“We insure your home as residential,” Dean says, “but it has a rider that covers short-term use when you have paying guests.”

Without that rider, hosts may believe they are protected — until a claim occurs. “If they find out you’re short-term renting and you don’t have that rider, they will not cover you,” Dean says. “It’s simply not covered.”

The Biggest Risk Isn’t Property Damage — It’s Liability

Many hosts focus on fire, broken items, or guest damage. Dean says the bigger threat is often liability. “One of the biggest risks… is not property damage,” he says. “It’s liability, bottom line.”

Injury claims can become financially devastating very quickly. “They’ll take hundreds of thousands of dollars out of your pocket because of liability exposure.”

Dean encourages hosts to think about liability limits differently. “The most important thing… is to make sure your liability limits is higher than your liquid net worth.”

His reasoning is straightforward. “You just want State Farm to have deeper pockets than you do.”

Loss of Income Coverage Keeps Hosts Afloat

Dean also highlights another protection many hosts overlook: rental income coverage after a major loss.

“We’re going to pay up to 12 months of loss of income,” he said, because many hosts depend on STR earnings to cover expenses.

Why Coverage Quality Matters: “Pay to the Seams”

Finally, Dean explains that not all STR insurance restores a home the same way — especially in San Antonio, where many rentals are historic or custom renovated.

“A lot of these homes have been remodeled… restored,” he says. “They’re not going to replace it in that restored type of value.”

He describes what many policies provide as basic repairs. “Common construction is only going to cover Home Depot value.”

State Farm’s STR coverage focuses on replacement at similar construction.

“We have full replacement cost at similar construction,” Dean says, “which means we’re going to try to make it exactly how you had it… same quality, real wood.”

One of the clearest differences is what Dean calls 'pay to the seams.’

“Let’s say something happens… the wood floor keeps going and it’s all connected into each room,” he explains. “We would have to replace the entire wood floor.” Other companies may only repair the damaged section.

“They’re just going to replace a corner…or just the room.” But Dean says the goal should be a finished restoration that truly matches.

“On State Farm’s policy, we do,” he says. “We have to make it look right.”

The Bottom Line

Dean’s message is clear: STR insurance isn’t an optional upgrade.

It protects you when you have paying guests, fills the gaps AirCover does not, addresses your biggest exposure — liability — and ensures that if something happens, your home is restored properly, not patched together.

For hosts who want to operate professionally and protect what they’ve built, the right insurance coverage is the foundation.

Eastman Insurance and Financial Services, Inc. is a Friend of STRASA business member and will be attending STRASA's third annual Host & Local Business Fair on April 15th!

Contact Dean Eastman at:

Eastman Insurance and Financial Services, Inc

San Antonio                                 Far West (near Castroville) 

210.688.0724                              830.715.4034