For example, the insurance covers your costs if a guest gets hurt and decides to sue you. This insurance is known as short-term rental insurance. You only need short-term rental insurance when you rent out your property. Remember, It doesn’t cover family members who stay for free.
In this post, we will learn about short-term rental insurance and what it includes. Let’s start with a better understanding!
How Short-Term Rental Insurance Works
Short-term rental insurance works in different ways. For instance, some home insurance companies let you add short-term rental insurance to your current insurance plan. Sometimes, you might need a separate policy just for your short-term rental.
Whether you rent out a room in your home or another building on your property, these insurance rentals protect you if something goes wrong, like an accident.
Who Should Get Short-Term Rental Insurance?
If you rent out your property on platforms like Airbnb, you need short-term rental insurance.
If you have a mortgage, your lender might require an insurance policy. Besides all these scenarios, the landlord should also get insurance that covers damages.
What Does Short-Term Rental Insurance Include?
Short-term rental insurance protects you from common problems when renting your property to guests. It covers damages like fire, vandalism, or wind damage to the building. Remember one important thing, short-term rental insurance doesn’t cover your guests’ personal belongings.
Here we will learn what short-term rental insurance covers. Let’s have a look!
1. Property Damage Coverage
This covers damages caused by guests, whether accidental or intentional.
For example, a guest accidentally knocks over a lamp, breaking it. Your insurance would cover the cost of replacing the lamp.
Another example is if a guest intentionally damages a wall by punching a hole in it, the insurance would also cover the repair costs.
2. Liability Coverage
This covers legal fees and medical expenses if a guest is injured on your property.
For example, a guest trips on a loose rug in your hallway and sprains their ankle. Liability coverage would pay for their medical bills.
Another example is if a guest’s laptop gets damaged due to a leak from your property’s ceiling. The policy would cover the repair.
3. Loss of Income Protection
If your property becomes uninhabitable due to a covered event, this insurance compensates you for the lost rental income.
For example, a pipe bursts in your rental property, causing water damage. In this case, you might lose monthly rental income. But short-term rental insurance reimburses you for that lost income.
4. Personal Property Coverage
The short-term rental insurance protects your appliances, furniture, or décor, from damage or theft.
For example, if a guest spills red wine on your expensive couch, insurance would cover the cost of cleaning.
Another example is if a guest takes your coffee maker when they leave, personal property coverage reimburses you for those items.
5. Host Liability Protection
This covers unique situations where guests might feel emotional distress during their stay.
For example, a guest sues you, alleging they were falsely accused of breaking house rules, which hurt their reputation. In this case, coverage would handle legal fees and potential settlements. As you know, these types of cases are very hectic. So, if you want to avoid any such issues, it is better to opt for short-term rental insurance.
6. Guest Injury Protection
If a guest gets injured on your property due to unforeseen events, this insurance would cover medical expenses.
For example, a loose step on your staircase causes a guest to fall and break their wrist. The policy would cover their medical expenses. And it won’t be a burden on your pocket if such a mishap occurs.
7. Pet Damage Coverage
If a guest’s pet injures someone, this short-term insurance will cover the damages.
For example, a guest brings their dog, which scratches your hardwood floors. Pet damage coverage would pay for the repairs. If you have this policy, it will definitely protect you from financial and non-financial issues.
8. Liquor Liability Coverage
This policy protects you if an incident arises from alcohol consumption on your property.
For example, a guest gets intoxicated at a party they hosted at your rental and accidentally injures themselves or someone else. There will be total chaos that can never be imagined, But if you have short-term rental insurance, you don’t have to worry about anything. Because this coverage would protect you against claims arising from that incident.
All the above-mentioned examples show how short-term rental insurance provides peace of mind. Plus, it safeguards your property and other interests. So, if you want to rent out your property, you must look for short-term rental insurance.
Bottom Line
Short-term rental insurance protects homeowners who rent out their properties on platforms like Airbnb. It provides extra coverage that regular homeowner’s insurance doesn’t. In this article, we have discussed the coverage from property damage to liquor liability. If you want to live in peace, there is no more awesome option than opting for short-term rental insurance.
