Short Term Rental Insurance: Questions to Ask
Short term rentals are rental properties that you would stay in while vacationing or visiting a new area for a shorter period of time. When you rent an apartment, you usually sign a one year lease and you stay there for an extended period. You make it your home. With a short term rental, you generally stay a couple of nights to a couple of weeks and then leave. This is a place that you are not permanent with, it does not become a legal address and you’re just passing through the area and need somewhere to stay during that time.
If you want to insure yourself during the time you’re staying in one of these rentals, then it is important to get the right rental insurance. It is different from home insurance and it is also different from renters insurance. Both of those coverages were made for longer-term solutions and those moving to the areas with an intent to stay there for a longer period of time. In order to have the appropriate cover, it is important to think about short term rental insurance and what comes with it.
What should short term vacation rental insurance cover?
When you go shopping for a short term vacation rental, it is important to think about the insurance that you get and what it should cover. You cannot use insurance that is not going to cover much, since why would you purchase it in the first place?
Some insurance policies will give you a bit of one thing and not much of another, which is why it is important to really look at the policy to find out what it is able to provide you with. You might be surprised to find that it is a beneficial policy to have.
When you go to choose a short term rental insurance policy, make sure that the policy covers:
- Contents of the property, including your own personal property
- Damage to any part of the property
- Individual health coverage and accidental coverage
- Faults of both yours and the owners, to cover any accidents that happen
- Coverage on the property itself if you have an accident and something happens to it
Choosing the right short term home insurance for your rental business
There are so many insurance companies to choose from, so it is important that you want to make sure that there are no legal issues that might come with short term rentals in the area. When it comes to having the coverage, it should also be a suitable choice for the business and those renting from them. Additionally, it has to have enough coverage to cover the entire cost of the rental itself. You want to make sure that all of the coverages provided are going to do the job that needs to be done in case something does happen.
Another recommendation for those managing short-term rentals is to request a damage deposit for anything that might become damaged during their stay. This will deter those guests that might be untrustworthy and might just break some items or do some damage inside the property. In order to cut back on them, this deposit can help do so.
Having the proper insurance in place on your end is something that can help you overcome those situations where you have damage and you are unsure of what is going to cover the costs of cleaning up the damages and replacing what was lost. This insurance coverage is what bridges the gap and makes sure that the coverage provides the necessary help that is needed. Sometimes guests will come with their own rental insurance that can also cover anything that might happen, especially accidents where they might be at fault due to them. You can feel much more confident about being able to move forward with them and all that comes with them in the end with the right insurance policy that covers everyone and provides that peace of mind.