Property Owner Sues After STR Permit Revoked

Sep 10

Cities are cracking down on short-term rentals. And when permits get pulled, owners often look for someone to blame.

Short-term rental property involved in permit revocation dispute and liability exposure

Short-Term Rental Permit Revocation Liability Insurance Claim Example

The Incident

After repeated nuisance complaints, a city revoked a short-term rental permit. The property owner lost $100,000 in value and sued the manager, claiming mismanagement caused the revocation.

The Gap

Most policies don’t cover lawsuits between owners and their managers. Without specialized protection, co-hosts and managers can be left defending themselves at their own expense.

The Cost

$100,000 claim for a financial loss as a result of mismanagement
Court costs and attorney fees
Loss of trust with current and future clients

How Wister Insurance® Coverage Helps

Wister includes professional liability (E&O), meaning managers and co-hosts are covered for financial losses resulting from failure to provide professional services.

Takeaway

Even if you do everything right, owners may blame you for things outside your control. Wister ensures you’re not left alone in court.

Choose Wister Insurance® for peace of mind and get a quote today.

Short-term rental management insurance for vacation rental managers and co-hosts from Wister Insurance

*While Wister cannot disclose details of actual lawsuits or settlements, the examples shared here reflect real claim scenarios and hypotheticals designed to illustrate the protection our policies provide.

Melia M. McDaris

Melia McDaris is the Marketing Manager at Wister Insurance®, where she leads brand strategy, digital marketing, and content across the company’s portfolio. Her work focuses on translating complex insurance concepts into clear, approachable messaging that resonates with short-term rental managers and co-hosts nationwide. Melia plays a key role in shaping Wister’s voice and visibility, ensuring the brand remains trustworthy, modern, and human-first in a highly regulated industry.

https://wister.insure/