Airbnb & Short-Term Rental Insurance in the Dominican Republic: Owner’s Guide to Liability, Loss of Income & HOA Rules

Short-term rentals in the Dominican Republic (DR) are booming—especially around Punta Cana, Bávaro, Santo Domingo, Las Terrenas, and Cabarete. Whether you self-manage or use a co-host, you’re operating a small lodging business, which means you need more than a standard homeowners policy. This guide breaks down the coverage stack DR hosts actually use, the gaps in platform protections, and how to document a claim so your payout isn’t delayed.

Why short-term rental (STR) coverage is different

A typical homeowners policy is designed for owner-occupied living, not frequent guest turnover. Once you start hosting, risk changes: more foot traffic, keys or codes shared widely, cleaners and handymen on site, accidental damage by guests, and business income exposure if a storm or major loss takes your listing offline. That’s why hosts should build a package that layers property, liability, and loss-of-income coverage—often with targeted add-ons for STR realities in the DR. For fundamentals on insuring DR homes, start with our Property & Contents Insurance page. Hernandez Peguero | Insurance

What platform protections usually cover (and their gaps)

Hosting platforms sometimes include limited host protections, but these are not a substitute for a real policy. Limits can be conditional, certain categories of property may be excluded (cash, fine art, certain electronics), and third-party liability (claims from guests or neighbors) can be constrained by exclusions. Treat platform perks as a courtesy layer; rely on a licensed policy for predictable claims handling and compliance with HOA or lender requirements.

The core policies a DR host should carry

1) Property (building & contents) tailored for STR use

Insure the structure (if you own a villa or house) and your contents (furniture, appliances, décor, linens, electronics). For condos, the building shell is typically under the master policy; your individual policy focuses on improvements & betterments and contents. Consider policy form, too: our comparison of Named Perils vs. All-Risks shows how broader “all-risks” coverage reduces uncertainty for busy hosts. Hernandez Peguero | Insurance

DR-specific deductibles: Windstorm/hurricane deductibles are often %-based. If your condo’s contents are insured for US$80,000 and the hurricane deductible is 2%, you’d self-pay the first US$1,600 for a covered loss. Brush up with our plain-English guide to Deductibles in DR Property Insurance. Hernandez Peguero | Insurance

2) General liability (and optional umbrella)

This pays when you’re legally responsible for injuries or property damage to others—e.g., a guest slips on wet tiles or trips on a loose step. In multi-unit buildings, liability also helps if a guest accidentally causes water damage to a neighbor below. For higher-value homes or hosts with multiple listings, a personal or commercial umbrella can add an extra liability layer above the base limit.

3) Loss of income / business interruption

If a covered peril (e.g., windstorm, fire, water damage) forces you to cancel bookings, loss-of-income coverage replaces the net rental income you would have earned during repairs, subject to the policy terms. In a hurricane-exposed market with seasonal revenue spikes, this is one of the most valuable line items for hosts.

DR-specific risks to model in your coverage

• Hurricanes & windstorm: Season runs June–November; many policies carry special deductibles and sub-limits. See our overview on Property Insurance during Hurricane Season. Hernandez Peguero | Insurance

• Flood: Often excluded unless you specifically add it—important for ground-floor units or villas near waterways.

• Power surges & electrical damage: Voltage fluctuations can fry A/C boards and appliances; consider equipment or electronic equipment extensions. Our guide to Top Property Add-Ons in the DR covers this in detail. Hernandez Peguero | Insurance

• Theft & vandalism: Higher turnover increases exposure; verify limits for electronics, art, and outdoor furniture.

• Liability from contractors/staff: Ask cleaners and handymen for basic labor risk protections where applicable; ensure your own liability policy doesn’t exclude incidents involving hired help.

• Earthquake: Less common than windstorm but possible; learn how it’s handled in DR policies in our Punta Cana earthquake explainer. Hernandez Peguero | Insurance

Add-ons that STR hosts often find worth it

• Equipment breakdown: Covers sudden mechanical/electrical failure of A/C condensers, pool pumps, and major appliances.

• Electronic equipment all-risk: Better treatment for TVs, routers, smart locks, tablets used for guest management.

• Glass breakage: For big sliders and balcony doors common in coastal condos.

• Home assistance: Dispatches locksmiths, plumbers, or electricians—handy when a guest locks themselves out or the sink fails on a Saturday night. We unpack how Home Assistance works here. Hernandez Peguero | Insurance

• Personal accident/medical payments: Small, no-fault limits that can help defuse minor incidents quickly.

• Pet liability: If you allow pets, evaluate specific exclusions/limits.

We’ve rounded up these and other extras in our Property Add-Ons guide. Hernandez Peguero | Insurance

HOA/condo rules & proof of insurance

Most condo boards in resort areas require: (1) proof of liability insurance naming the HOA as an additional insured, (2) evidence of contents coverage, and (3) compliance with building bylaws (e.g., grill restrictions, balcony glass specs). If you offer amenities like a hot tub, ask your broker to confirm there’s no exclusion for that specific exposure. When shopping, bring the HOA’s insurance clause so your policy can be issued correctly the first time.

Pricing levers: how hosts manage cost without sacrificing protection

• Choose a realistic deductible: Higher deductibles lower premiums, but make sure emergency cash reserves match. Revisit our Deductibles guide before deciding. Hernandez Peguero | Insurance

• Bundle: If you also insure a personal residence or multiple STRs, you may gain multiline credits with some carriers.

• Update sums insured annually: Inflation and furniture upgrades creep up; underinsurance can reduce payouts.

• Claim-prevention: Smart locks, leak detectors, and surge protectors often pay for themselves.

Claims: documentation, guest communication & timelines

If there’s an incident:

1. Protect & document: Secure the area, take photos/video, and list damaged items with approximate replacement costs.

2. Notify quickly: Contact your broker and the insurer; urgent mitigation (e.g., drying a leak) is usually encouraged.

3. Keep bookings records: Your calendar, messages, and payout reports help substantiate loss-of-income claims.

4. Coordinate with the HOA: If building elements are affected (façade, pipe stacks), align your file with the building manager’s claim.

5. Follow through: Save invoices, repair estimates, and correspondence. For a step-by-step walkthrough, see: How to File a Homeowners Claim in the DR. Hernandez Peguero | Insurance

How Hernández Peguero structures STR coverage portfolios

Because every listing is unique, we build a layered solution:

• Form first: Aim for broad “all-risks” where budget allows; fall back to named perils with targeted add-ons if needed. Hernandez Peguero | Insurance

• Right limits: Start with realistic replacement costs for contents and improvements (including premium mattresses, outdoor sets, small appliances).

• Wind & water: Dial in hurricane and water-damage wording that matches your building’s construction and floor level.

• Income protection: We benchmark seasonal ADR/occupancy to size loss-of-income coverage correctly.

• HOA compliance: We review bylaws and provide certificates listing the condo board where required.

• Claims help: Bilingual support and local vendor coordination so you can get back to hosting sooner. For a broad intro to DR property protection, start here: Property Insurance Overview. Hernandez Peguero | Insurance

Quick pre-season checklist (print & save)

• Review sums insured and policy form before June 1.

• Photograph every room (and balcony) after your spring refresh.

• Install surge protectors and a simple water-leak sensor under kitchen sinks and behind washers.

• Confirm you have current guest house rules aligned with building bylaws (no smoking on balconies, quiet hours, etc.).

• Keep your broker’s WhatsApp handy for certificates and claims.

Internal resources you may also like

• Property Insurance during DR Hurricane Season — what’s covered and how deductibles work. Hernandez Peguero | Insurance

• Top Property Add-Ons in the DR — equipment breakdown, electronics, glass & more. Hernandez Peguero | Insurance

• How to File a Homeowners Claim in the DR — documentation checklist and timelines. Hernandez Peguero | Insurance

Why Choose Hernández Peguero Insurance Brokers?

We’re a Dominican-based, bilingual brokerage that understands the realities of hosting—seasonality, HOA requirements, and the need for fast claims action so your calendar doesn’t sit empty. For STR owners we provide:

• Tailored all-risks or named-perils policies matched to your building and floor level. Hernandez Peguero | Insurance

• Smart add-ons like equipment breakdown, electronics all-risk, glass, and home assistance. Hernandez Peguero | Insurance+1

• Proper certificates for HOAs and lenders, issued quickly when you need them.

• Hands-on claims guidance—from first photos to final settlement—so you can relist sooner. For a snapshot of our property solutions, visit our Property Insurance page. Hernandez Peguero | Insurance

Ready to Get a Quote?

Protect your Dominican Republic rental with the right coverage at the right price.

👉 Contact us now:
Phone / WhatsApp: +1 849-514-9838
Email: info@hernandezpeguero.com
Website: www.hernandezpeguero.com

We’ll guide you to the best plan for your property so you can host with total peace of mind.