More and more owners are turning their properties into short-term vacation rentals. This is largely due to the unprecedented growth of property managers and short-term rental advertising opportunities on websites like Airbnb, VRBO, HomeAway, TripAdvisor, FlipKey, RentByOwner, BookByOwner, and more. Consumers are using these websites and bookings are up.
Some properties are short-term weekly vacation rentals, some are monthly, and some are even primary residences only renting out during peak seasons. Some properties are simply second homes that owners only vacation rent 4 weeks per year, and others are condos rented 52 weeks. Stanberry Insurance has relationships with multiple carriers that can cover them all.
We currently insure vacation homes, duplexes, townhouses, condos, cabins, apartments, and much more, with a virety of coverages. Here are three things for you to consider:
LIABILITY: The single biggest exposure you have as a vacation rental owner is liability. When you open your door as the owner, you are also opening yourself up to liability risk. This liability risk is there whether you are simply renting a downstairs apartment or your entire property. What if a guest were to injure themselves while staying at your property? What if you were found to be liable? Maybe the shower was not thoroughly cleaned and a guest slipped on soap scum? Or worse, the vacation rental caught fire and resulted in a guest’s death.
BUILDING & CONTENTS: The second biggest exposure you have as the vacation rental owner is the actual property itself (building and contents). What if a guest were to accidentally start a fire and burn your property down? Or steal/damage your contents?
BUSINESS INCOME: Another big exposure you have is lost rental income, or business income. You have worked extremely hard to turn your property into an income generating short-term vacation rental business. What if a tree fell on your roof and you could no longer rent your property for the summer? Or worse, you had a total loss on the property as a result of a fire or hurricane? You need to protect the income your vacation rental generates.