Short-term rental insurance is an important element of financial planning for anyone who owns a vacation rental property. This type of insurance is designed to protect the property owner from any losses or damage that may occur while the property is being rented out on a short-basis (less than 30 days). Short-term rental insurance policies are typically more expensive than traditional homeowners insurance policies, because your homeowners policy typically excludes coverage for any short-term rental activities.
There are a number of different insurance providers who offer short-term rental insurance policies, so it is important to compare the different options to find the best policy for your needs. Some policies may only cover damage that occurs to the property itself, while others may also cover loss of income if the property is unable to be rented out. It is also important to make sure that the policy covers any liability claims that may be filed against you.
If you are renting out your property through Airbnb, you are automatically covered by their host protection insurance. This coverage includes up to $1 million in liability coverage for bodily injury or property damage. However, it does not cover any damage caused by environmental factors, intentional acts, or loss of income. If you wish to make a claim, you must first contact Airbnb, who will then connect you with a third-party claims administrator.
In addition to short-term rental insurance, it is important to have liability insurance. Liability insurance covers any damages that may be awarded to a third party as a result of an accident or injury that occurs on your property. It is important to have enough liability insurance to cover the value of your property, as well as any potential judgments that may be awarded.
Beacon Point Insurance offers short-term rental insurance policies that are designed specifically for vacation rental properties.