How Mid-Term Rentals Fit Insurance Housing Needs

Mark Palmiere
May 30
12 min read

Updated: Jun 12

When disaster strikes, families often face the challenge of finding temporary housing while their homes are repaired. Mid-term rentals (stays of 1–6 months) are becoming a go-to solution for insurance companies and displaced families. Here's why:

Flexible Timelines: Mid-term rentals align with unpredictable repair durations, unlike short-term stays or long-term leases.
Comfortable Living: Fully furnished homes with kitchens, laundry, and internet create a "home away from home."
Family-Friendly: Options for pet-friendly, ADA-compliant properties close to schools and workplaces help families maintain routines.
Cost-Effective: They reduce expenses compared to extended hotel stays, preserving insurance coverage budgets.

For property owners, mid-term rentals mean steady income, lower vacancy rates, and reduced maintenance costs. This hybrid rental strategy - blending short-term and mid-term stays - also maximizes occupancy and revenue.

Quick Comparison:

Rental Type	Duration	Best For	Key Benefits
Short-Term	Few nights–1 month	Emergency displacement	Immediate availability, fully furnished
Mid-Term	1–6 months	Insurance claims, extended stays	Matches claim timelines, stable environment
Long-Term	6+ months	Permanent relocation	Lower monthly costs, tenant customization

Mid-term rentals bridge the gap between short-term solutions and permanent housing, offering stability for families and opportunities for property owners.

Where to Find the Hottest Mid-Term Rental Insurance Contracts

What Insurance Housing Clients Need

Insurance housing clients face a unique set of challenges that demand specialized solutions. These families are often dealing with the stress of property damage while trying to maintain stability in their daily lives. Their requirements go far beyond simply finding a roof over their heads.

The duration of their stays can vary widely - from a single night to an entire year. For instance, a family might need temporary housing for six weeks after a burst pipe or six months following a fire. Traditional housing options often fall short in meeting these varied needs. This is why mid-term housing solutions tailored to insurance clients have become so crucial.

Stability is key for these families. Staying close to their neighborhoods allows children to remain in their schools and adults to keep their regular commutes. Beyond location, certain amenities are essential: a fully equipped kitchen, in-unit laundry, reliable internet, and spaces that accommodate pets or mobility needs. These features help families maintain a sense of normalcy during a difficult time.

Short-Term vs. Mid-Term Housing for Insurance Claims

Historically, the insurance housing market has relied heavily on short-term rentals. These work well for brief stays, typically ranging from a few nights to a month. However, most insurance claims require longer accommodations, which short-term options often fail to provide.

Mid-term rentals, which range from 1 to 6 months with an average stay of about 13 weeks, are better suited for the typical timelines of insurance claims. They strike the perfect balance, offering families flexibility without the commitment of a long-term lease.

Rental Type	Duration	Best For	Key Benefits
Short-Term	Few nights to 1 month	Emergency displacement, hotel alternatives	Immediate availability, fully furnished
Mid-Term	1–6 months (avg. 13 weeks)	Insurance claims, extended recovery	Matches claim timelines, stable environment
Long-Term	6 months to several years	Permanent relocation	Lower monthly costs, tenant customization

This comparison highlights why mid-term rentals are a better fit for insurance claim needs. Notably, Airbnb reports that stays of 30 days or more now make up 17% of its revenue, and this segment continues to grow.

Mid-term rentals also offer the adaptability that Sedgwick emphasizes:

"Whether accommodations are needed for one night or one year, our highly trained specialists are there to find just the right home away from home."

This adaptability is especially important when initial damage assessments underestimate the length of time families will need housing.

Common Problems in Insurance Housing

Despite the advantages of mid-term rentals, traditional housing solutions for insurance clients still face major hurdles. Extended hotel stays, for example, can quickly drain ALE (Additional Living Expenses) coverage due to high costs, while also lacking the comfort of a home-like environment. Furthermore, finding properties that can accommodate families - especially those with children, pets, or mobility challenges - can be a significant obstacle.

Another issue is the logistical strain of multiple relocations during a single displacement period. Each move disrupts daily routines and adds emotional stress. Poor communication about coverage limits and benefit durations can leave families unprepared, while inadequate record-keeping can delay claim processing.

These persistent challenges are driving the industry toward mid-term rental solutions. As one expert explained:

"A mid-term rental provides the flexibility of short-term contracts without long-term commitment, making it an option for many in today's fast-paced world."

How Mid-Term Rentals Solve Insurance Housing Problems

Mid-term rentals address challenges in insurance housing that traditional options often fail to meet. These rentals fill the gap between costly short-term stays and rigid long-term leases, offering a practical solution for families dealing with uncertain timelines for property repairs.

Matching Insurance Claim Timelines

The flexibility of mid-term rentals becomes especially clear in the context of insurance claims. Repairs after major disasters like hurricanes or floods can take weeks or even months to complete. With rental durations typically ranging from a few weeks to several months, mid-term rentals naturally align with these extended recovery periods.

Take, for instance, a family displaced by fire damage. They might initially expect to need housing for a month, but repairs often require more time. At Sinistar, the average rental contract lasts about two months. This flexibility allows families to extend their stays as needed, avoiding the hassle of multiple relocations. For property owners, these predictable rental periods align closely with the typical timeline of insurance claims, ensuring steady occupancy.

Furnished Properties Reduce Relocation Stress

Mid-term rentals not only match the timing of insurance claims but also ease the emotional and logistical burden of moving. Fully furnished properties eliminate the need for families to buy or transport furniture during an already stressful time. After losing their home to a fire or flood, the last thing anyone wants is to worry about furnishing a temporary space.

These rentals come equipped with everything families need to maintain their routines, from Wi-Fi and laundry facilities to parking. Such amenities are crucial for families balancing work, school, and the complexities of insurance claims. The familiar, comfortable environment of a mid-term rental helps create a sense of normalcy during a chaotic period.

"Mid-term rentals usually include fully furnished flats and houses with kitchen facilities, providing a home away from home for people who have to go to a new city on business and those going through personal transitions like divorce or relocation." - The Hospitable Team, Hospitable

The benefits don’t stop there. Being situated in established neighborhoods adds a sense of stability and security, which is especially important for families with children. This consistency can make a big difference in helping kids adjust during disruptive times. By offering well-furnished spaces with quality mattresses, reliable appliances, and essential household items, property owners can create a welcoming environment where families can focus on rebuilding their lives rather than dealing with daily inconveniences.

Combining Short-Term and Mid-Term Rentals for Better Occupancy

For property owners, blending short-term and mid-term rental strategies can optimize both occupancy and revenue. This hybrid approach is particularly effective in the insurance housing market, where displacement scenarios vary widely. During high-demand seasons, short-term rentals can maximize income. In quieter periods, mid-term rentals help avoid vacancies by accommodating longer stays for families dealing with extensive repairs.

According to Intellihost, short-term rentals often generate about 30% more income, but mid-term rentals tend to have higher occupancy rates. Many property managers split their rental strategies, with around 60% short-term and 40% mid-term leases, adjusting based on seasonality and guest behavior.

This approach works well for insurance housing. Property owners can provide emergency housing for short stays while also catering to families needing extended accommodations. Seasonal markets benefit particularly from this flexibility, as properties can serve tourists during peak times and insurance clients in the off-season.

West Coast Homestays in San Diego exemplifies this strategy, successfully combining short-term and mid-term rentals to maximize both occupancy and revenue. Their system allows seamless transitions between rental types based on demand, ensuring consistent income while meeting the needs of insurance clients.

Pricing for this hybrid model requires careful planning. For monthly stays, discounts of 30–40% off the regular daily rate are common. Platforms like Airbnb recommend setting discounts to match expected vacancy rates. For example, if a property typically has a 20% vacancy rate, offering a 20% discount on monthly stays can be an effective strategy.

"Mid-term rentals are emerging as another revenue stream for the modern property investor." - Nick Massey, Director of Sales at Proper Insurance

Financial and Business Benefits for Property Owners

Mid-term rentals offer property owners a way to boost income while simplifying day-to-day management. By combining multiple revenue opportunities with operational efficiency, these rentals stand apart from traditional approaches.

Lower Vacancy Rates and Steady Income

Including mid-term rentals in a property portfolio helps smooth out the ups and downs of seasonal demand. When the tourist crowds thin or business travel dips, insurance housing steps in to provide consistent bookings throughout the year. This hybrid strategy ensures a steady income even during off-peak times.

"We are the only professional short-term rental management company that also focuses on Mid-term rentals. We use a hybrid approach to keep your calendar and bank account full." - West Coast Homestays

West Coast Homestays has seen properties under their management experience a revenue increase of 20–30%. In some cases, redesigned properties have even doubled their earnings. Insurance housing contracts also often come with premium pricing, as insurance companies are willing to pay market or higher rates for well-maintained accommodations needed on short notice. These higher rates not only boost income but also help offset operational costs.

Reduced Maintenance Costs with Longer Stays

Longer tenant stays translate to fewer turnovers, which means lower maintenance and operational expenses. Insurance housing tenants typically remain for weeks or months, reducing the frequency of deep cleanings, wear and tear on locks, and utility setup costs. In 2023, the U.S. saw a 94% year-over-year increase in nights booked for stays of 30 days or more, with mid-term rentals averaging 51% occupancy.

Tenants in these arrangements also tend to report maintenance issues promptly, allowing property owners to address problems early and avoid costly repairs.

"The disadvantage (of course, if you choose to see it as a disadvantage) is increased turnover. However, turnovers can be a breeze when the right systems are in place. The advantages? Great tenants, a well-maintained unit, increased cash flow, simple self-management." - Sarah Weaver, Experienced Real Estate Investor and Co-Author

Investing in durable furniture and appliances is another smart move for insurance housing. These upgrades last longer and reduce the need for frequent replacements. Additionally, the screening process - often involving the insurance company, displaced families, and sometimes case managers - results in reliable tenants who understand the temporary nature of their stay and take care of the property.

Easier Management with Insurance Housing

Managing mid-term rentals is also less labor-intensive. Automation tools can streamline booking processes, cutting down the time spent setting up each reservation. Communication becomes more efficient as property managers build relationships with long-term tenants, reducing repetitive questions and enabling more tailored service.

Cleaning and maintenance schedules are easier to plan and cost less, as mid-term rentals don’t require the frequent deep cleanings that short-term stays demand. Additionally, the documentation required for insurance housing simplifies record-keeping and tax preparation.

Strong relationships with insurance adjusters, case managers, and relocation specialists also lead to repeat referrals, creating a reliable client base over time. Property management software can handle tasks like booking confirmations, payment processing, and tenant messaging, saving time and effort when managing multiple properties.

Requirements for Insurance-Ready Mid-Term Rentals

Mid-term rentals require specific measures to protect both the property and the families temporarily residing there. These measures ensure safety, compliance, and smooth operations.

Proper Liability Insurance Coverage

Standard homeowners insurance doesn’t cut it for mid-term rental properties. These policies are designed for owner-occupied homes, leaving rental activities vulnerable to financial risks. Instead, property owners need landlord insurance that covers essentials like property damage, furnishings, lost income, legal fees, and liability.

"Property owners need to be proactive, ensuring that their insurance policy is tailored to the unique challenges and requirements of mid-term rentals." - Proper Insurance

In 2024, specialized landlord insurance costs about 15–20% more than standard policies, with short-term rental coverage ranging from $1,500 to $3,000 annually. Companies like Proper Insurance offer policies without occupancy restrictions, making them ideal for properties that switch between rental types. Another solid option is Steadily, which is also recommended for mid-term rental coverage.

To further safeguard their interests, property owners might require guests to carry their own homeowners, renters, or personal liability insurance. It’s also essential to understand the time limits in insurance policies, as some may impose restrictions on tenant stays beyond a certain duration.

ADA and Accessibility Standards

Accessibility is another cornerstone of insurance-ready mid-term rentals. These properties often house displaced families, including individuals with disabilities. Meeting accessibility standards not only broadens the pool of potential clients but may also lead to priority placement by insurance companies.

Improving accessibility starts with key areas like entry points and shared spaces. Features such as accessible parking spots, ramps or step-free entrances, wide doorways (at least 32 inches), and bathroom upgrades like grab bars and roll-in showers are practical and impactful. Even small modifications can make a big difference.

A professional ADA compliance audit is a great first step to identify areas needing improvement. Start with accessible parking and entryways, as these are foundational elements. Many states offer tax breaks or grants to help cover the cost of accessibility upgrades. Additionally, rental listings should include detailed descriptions and photos of accessibility features to set clear expectations for potential tenants. Regular maintenance of ramps, handrails, and doorways ensures these features remain functional over time.

Record Keeping for Insurance Claims

Accurate documentation is key to a smooth claims process. Proper records not only prevent delays but also help resolve disputes between property owners, insurance providers, and tenants.

Visual documentation is a must. Take photos and videos of the property’s condition before and after each rental. A 3D virtual tour can provide an even more comprehensive record of the property’s state at any given time.

Detailed inventory management is equally important. Go room by room to document all furnished items, noting details like purchase dates, costs, brand names, and serial numbers for electronics and appliances. This information is invaluable if you need to file a claim for damages.

Keep receipts for purchases, repairs, contractor estimates, and any debris removal or temporary housing adjustments. Also, maintain a log of all communications with insurance adjusters, including phone calls and written exchanges. Regularly updating your insurance carrier after property upgrades ensures your coverage remains adequate.

Companies like West Coast Homestays demonstrate the importance of thorough documentation. Their system includes detailed move-in and move-out inspections, regular property condition updates, and organized communication logs. This meticulous approach not only speeds up claims but also builds trust among all parties involved in insurance housing arrangements.

Conclusion: Mid-Term Rentals Meet Insurance Housing Needs

Mid-term rentals have emerged as a practical solution for insurance housing needs. In 2023, bookings for stays of 30 days or more surged by 94%, and these rentals can generate 50–100% more income compared to traditional long-term leases.

For families displaced by disasters, mid-term rentals offer stability during a challenging time. These properties provide a temporary home while repairs or rebuilding take place, with rental terms typically spanning one to six months - perfectly aligning with the usual duration of insurance claims.

Property owners also benefit significantly. Insurance clients often maintain properties well, which helps reduce maintenance costs and streamline operations. With an average occupancy rate of 51%, combined with consistent monthly payments, these rentals offer a steady and predictable income stream. These operational perks also open the door for partnerships with insurers, offering long-term opportunities.

Building connections with local insurance companies and adjusters can be especially valuable. These relationships often lead to a reliable flow of referrals, as insurers are always on the lookout for trustworthy housing providers who can meet the diverse needs of displaced families.

"Hosting insurance clients is about more than just earning a profit - it's about providing a sanctuary for people during some of their most difficult moments." - Dr. Chau Ong

Companies like West Coast Homestays have shown how blending short-term and mid-term rental strategies can optimize both occupancy and revenue. Their well-rounded approach, which includes everything from listing optimization to guest services, highlights how professional property management can transform insurance housing into a rewarding and impactful business.

FAQs

Why are mid-term rentals a better option for families displaced by disasters compared to short-term or long-term rentals?

Mid-term rentals (MTRs) can be a lifeline for families displaced by disasters, offering a blend of stability, flexibility, and ease during a challenging time. Unlike short-term rentals, which often come with constant turnover, MTRs provide stays lasting 30 days or more. This gives families the breathing room to settle in without committing to a long-term lease - an essential benefit when recovery timelines are uncertain.

What makes MTRs even more appealing is that they’re typically fully furnished. Families don’t have to stress about finding furniture or basic household items when their focus is on rebuilding their lives. Many of these properties are also arranged through insurance companies, ensuring they meet the specific needs of displaced families. By combining comfort with adaptability, mid-term rentals allow families to regain a sense of normalcy without the added burden of frequent relocations or rigid lease terms.

How can property owners prepare their rentals to meet insurance requirements and accessibility standards?

Preparing Rentals for Insurance Needs and Accessibility

If you're a property owner looking to cater to insurance housing clients, there are a few key steps to ensure your rental is ready. First, familiarize yourself with important regulations like the Fair Housing Act and the Americans with Disabilities Act (ADA). These laws might require you to include features such as wheelchair-accessible ramps, wider doorways, and reserved parking spaces for those with disabilities.

Safety is another critical factor. Conduct regular inspections to ensure your property meets safety standards. Equip your rental with essential safety devices like smoke detectors, fire extinguishers, and carbon monoxide alarms - and make sure they're in working order.

Lastly, review your insurance policy to confirm it covers mid-term rentals and any specific needs of displaced families. Addressing these areas not only ensures compliance but also makes your property a more attractive option for insurance housing clients.

How can property owners seamlessly switch between short-term and mid-term rental strategies to maximize occupancy and income?

Property owners looking to shift between short-term and mid-term rental strategies can do so effectively by focusing on adaptability and smart planning. Start by implementing dynamic pricing to align your rates with market demand and seasonal fluctuations. Make sure your property listing emphasizes the perks of mid-term stays, such as offering tenants a more convenient, flexible, and home-like experience.

Clear communication with guests is crucial. Be upfront about rental terms and adjust your approach to suit both short-term visitors and mid-term renters. Keep a close eye on occupancy trends by analyzing your data regularly, which can help you fine-tune your strategy. Additionally, simplify operations like guest screening, property maintenance, and vendor coordination. This will ensure a seamless shift between rental types, allowing you to maximize both occupancy rates and revenue.