Is Your Short-Term Rental Properly Insured?
by Mike Compton
With short-term rental properties becoming more and more prevalent as investment properties, or even as a main revenue stream, it is imperative to make sure that you are properly covered when it comes to insurance. If you regularly rent your property to others on a short-term basis, utilizing platforms such as AirBnB or VRBO, then you need to make sure to have a business insurance policy in place that protects you. This would be a policy which is comprehensive and developed specifically for short-term rentals in order to adequately cover your property and liability exposure.
Property insurance covers the property itself from perils such as wind, hail, fire, theft, vandalism, etc. Liability coverage is there for incidents that occur during a guest’s stay that result in bodily injury or property damage to a guest or third party.
When quoting insurance to make sure you are properly covered, the basic information you will need in order to get a comprehensive quote is the following:
- Age of building
- Square footage
- Number of units rented
- Construction type
- Any updates (year only) for the electrical, plumbing, HVAC and roof if property is over twenty years of age
- Value/limit for the building
- Value of any of the personal property you own there
- Estimated annual rental income
Many policies do not provide adequate protection. Contact us today to be sure the policy is properly designated specifically for a short-term rental exposure.