As a property owner, it’s important that you protect your asset with sufficient insurance coverage. If you rent out your property, then you may benefit from short term rental insurance. Below, we explain what this type of coverage includes and how to choose a policy.
What Is Short Term Rental Insurance?
Short term rental insurance is a type of liability insurance. It protects your property and helps to limit your legal liabilities while renters stay in the residence.
No two policies are quite the same. However, most short term rental policies protect against the following:
- Guest damages: Covers property damage caused by short term rental guests.
- Liability: Liability insurance protects you if a tenant files a claim after being injured on your property.
- Theft: If a guest steals from you or someone else breaks in while a guest is present, this coverage protects you.
You may not be protected against all losses, e.g., intentional damage. You may need additional insurance to cover such risks.
Homeowners Insurance and Short Term Rentals
Does homeowner’s insurance cover short term rentals? No. In most cases, you will need additional coverage to protect a rental property.
A home insurance policy may even exclude business use, which includes renting out your home. In such cases, you will certainly require additional coverage.
Who Needs Short Term Rental Insurance?
Any landlord or property owner who rents their property, even on a casual basis, needs proper insurance. Having sufficient insurance in place can protect you against financial losses from liability claims or property damage.
If you do not have enough coverage, you must pay the full cost of repairing or replacing damaged property. You could also be fully financially responsible for any lawsuits brought by tenants against you.
Choosing a Rental Insurance Policy
To choose a rental policy, consider:
- How frequently you rent your property
- The value of your property
- The value of any assets contained within your property
- Your budget for insurance coverage
Adion Financial can help match you with the right policy to protect your investment – no matter your budget.
How Much Is Short Term Rental Insurance?
The cost of cover for short term rental properties varies significantly. It all depends on a number of factors, including:
- Level of coverage for damages
- Past claims history
- Size of the property
If you plan on renting your property, you should shop around and do your research before committing to a policy.
What Major Insurance Providers Cover Short Term Rentals?
Various insurance carriers offer short term rental insurance for investment properties. This includes major providers and niche firms who specialize in this type of coverage. Finding the right level of cover, though, can be challenging.
That’s where we can help. The Adion Financial team can:
- Discuss your budget
- Explain your coverage options
- Find your competitive quotes
- Help you secure the right type of insurance for your needs
We will explore a range of insurance providers to help you protect your property.