Listing a home on a short-term rental site like VRBO or Airbnb is a great way to gain a little extra income on your vacation home when you aren’t using it; however, the added liability means you need to protect your assets so that the space is making you money instead of costing you big.
When you are shopping around for short-term rental insurance, there are several things to keep in mind. First of all, you are not looking for a traditional homeowners or renters insurance policy. A traditional homeowners or renters insurance coverage option does not guarantee protection of rental income made on the property from short-term rentals.
Instead you will want to talk to your agent about short-term rental or vacation rental policies.
Secondly, there are a variety of factors that go into determining your policy. Here are the major policy factors that may play into what you pay for coverage:
1. Amenities
There are many aspects of your listing that renters may view as perks but insurance companies see as major liabilities. These may include:
- Pools
- Docks or piers
- Water sports vehicles or watercrafts
- Trampolines
- Treehouses
- Allowing Pets
Although no one wants to pay extra on their policy, you want to ensure you have proper insurance to match your level of risk. Make sure you give your agent as much detail as possible to allow them to assess your home accurately and provide the best coverage available.
2. Safety
Similarly to any rental property, the property owner is responsible for establishing and maintaining a safe environment and reducing any risks. This includes ensuring there are working smoke alarms, carbon monoxide detectors, fire extinguishers, and maintaining walkways, stairs, and railings. To reduce the level of risk guests experience in your home, make sure you stay on top of any necessary maintenance and safety precautions.
3. Additional Business Opportunities
If you operate additional businesses on the premises of your rental property, this may factor into your insurance premium. This includes if you are running any classes or workshops, excursions, or equipment rentals to any of your guests. Be sure to mention this when discussing your policy needs.
Ready to discuss your short-term rental property needs and how you can protect yourself and your rental income? Contact YUR agents to get started by calling 610-770-6600 or send us a message!