Vacation rentals are increasingly popular on sites like Airbnb and VRBO. In fact, there are more than 4 million hosts that use Airbnb to promote their property. However, many of these hosts don’t recognize the need for vacation rental insurance for owners.
Do you want to learn more about homeowners insurance, insurance coverage for vacation rental owners? Keep reading this article to learn about the benefits of vacation rental insurance. See how Lake Region Insurance Agency can help you with vacation rental insurance and other rental insurance needs!
What Is Vacation Rental Insurance for Owners and How Does It Work?
Vacation rental insurance is a type of insurance coverage that protects people with short-term rentals or vacation rental homes. Because there are many costs, liabilities, and other concerns associated with owning a property, your insurance coverage will protect you.
How does it work? When you are creating your policy, you should include:
- The structure of the building.
- The items inside your vacation rental.
- Liability for damage or injuries to your tenants.
- The potential loss of income.
The Benefits of Vacation Rental Insurance for Owners: Why Do You Need Insurance for Your Vacation Rental Property?
There are many reasons why you should get insurance for your vacation rental or your short-term rental property. Whether you do it to save money, provide peace of mind, or protect your business, here are the reasons why you should consider getting rental insurance!
1. Peace of Mind
One of the biggest benefits of getting rental property insurance coverage is that it can give you peace of mind. When you have a vacation home or get rental income, there are many things that can go wrong. Whether you have an emergency situation arise at your rental property, or if you have an accident in your vacation rental, having liability coverage from insurance companies can protect you.
For example, if you have a flood happen while someone is renting your property, short-term rental insurance may pay for the damage that has occurred.
Or, if you have found that tenants in your short-term rental property have left it damaged or trashed, it may seem overwhelming. Without the proper coverage from insurance companies, you may not be able to afford to fix the damages done.
However, having insurance provides you peace of mind. If you happen to have something go wrong with your vacation rental, you will be taken care of!
2. Protects From Liability
Having home insurance for your rental property is vital because it prevents you from being held liable in the event of an accident.
There are many common accidents and injuries that occur at Airbnbs and other vacation rental properties. Many of these include cuts, broken bones, and more. For example, if someone were to fall down the stairs at your vacation rental, you may have a lawsuit on your hands.
To prevent yourself from being liable in an accident, having vacation rental insurance can protect you! This is especially important as some injuries can lead to death or other serious complications.
3. Write Insurance off as a Business Expense
Another great benefit of having vacation rental insurance is that you can often write insurance off as a business expense. If you make any income from your rental property, any money that you put towards it can count as a business expense.
Insurance can be expensive, so this can help you save a lot of money! Other things that you can write off include property taxes, utilities, and even housekeeping costs.
No matter what kind of insurance coverage you have for your vacation rental or short-term rental property, you can deduct the premiums you pay. For example, you can save on fire, theft, and flood insurance to protect you from natural disasters!
4. Can Save Money
One massive benefit of having insurance for your short-term rental property is that it can save you a ton of money. As was mentioned before, you can save a lot of money when you write off your insurance premiums as a business expense. This can save you thousands of dollars in the long run.
However, insurance for your vacation rentals can save a lot of money in other ways. As was mentioned above, there are a lot of dangers that come with owning a vacation rental. Your tenants may get injured in accidents.
Not only is this awful for your tenants, but without proper insurance, you may find yourself unable to pay for the damage done. If your tenants take you to court, you will have to pay for expensive attorney bills and more.
If you are held responsible for the accident that occurred on your property, it is likely that you will have to pay a settlement. This includes medical bills, wages for lost work, and more. In extreme accidents, such as paralysis and more, you can end up paying hundreds of thousands of dollars in medical bills.
Many people simply cannot afford this. If you have good business insurance that keeps you from being held liable, you will be protected in the event of an accident like this.
5. Many Options for Insurance
Finally, the last benefit of insurance for your vacation rental is that they often have many options for insurance coverage. This means that you will be able to get the right kind of coverage for your rental property and that you can find the best features that work for you.
If you get rental property insurance, it should cover the building, liability, loss of rental income, and even your personal property as the landlord.
However, you may want to get additional insurance coverage to help with other damages. For example, vandalism coverage protects you from intentional damage caused by your renters.
Ordinance coverage is a type of insurance coverage that will help pay for repairs that are necessary to make your building meet local codes if damage occurred to something insured. Consider the many options for insurance so you can find the right coverage for your vacation rental!
Who Should Buy Vacation Rental Insurance for Owners?
Who should buy vacation rental insurance? In a nutshell, anyone who owns a short-term rental property or that rents their home out as a vacation rental. While it may not be necessary to get rental insurance for your short-term rental, it can save you from having a total loss in the future.
By investing in your insurance coverage now, you will be protected from damage and other accidents at your rental property. Regardless of where you live, you should review the local laws and ordinances regarding vacation rental properties in your area.
Where to Get Vacation Rental Insurance for Owners
When you own short-term vacation rentals, it is vital that you get proper insurance from an insurance carrier to protect yourself. There are many things that can go wrong with short-term vacation rental properties.
Do you want to find vacation rental insurance for owners? Lake Region Insurance Agency can help! We are an insurance agency that can help you find comprehensive coverage to insure vacation rentals that you own.
Whether you and your team are property managers or if you are renting out a home on Airbnb, you need to make sure you protect your personal property. Contact our team today to learn more about our insurance coverage options and to get a free quote from one of our agents!