Weighing whether to invest in vacation rental insurance for your property? Here are a few facts to consider:
Since your vacation home is rented out for money, it’s considered a business activity, so your homeowners policy likely doesn’t provide appropriate coverage. Personal liability or umbrella policies likely don’t apply for the same reason.
According to Hostfully, marketing platforms like Airbnb and VRBO usually only offer primary liability coverage. That means you likely aren’t covered by liabilities such as intentional damages and issues like bed bugs.
If you’re located in a condo or community, that policy probably only covers the area outside of your property – the exterior and grounds – not the interior.
According to FitSmallBusiness, typical policies range from $2,000 to $3,000 annually.
According to Nationwide, here’s what you can expect from a typical vacation rental property insurance policy:
Liability to cover personal injury to anyone on the property (i.e., guests, service providers, etc.)
Coverage for the physical structure and its contents in the event of issues like a fire, damage, and theft.
Reimbursement of lost income in the event that damage keeps you from renting your home out.
Don’t forget that your vacation rental manager likely needs you to add them to the declaration page of your policy. If you’re a Soar customer, please contact us if you need more details on this step.
Successful, stress-free vacation home ownership takes a vacation rental manager who cares about your property and guests just as much as you do. At Soar, our Galveston property managers are full-service, and at your service. From the moment we list your Galveston rental, to the departure of your latest guest, you can expect the highest level of attention and care in all that we do. Come aboard and watch your bookings and return on investment SOAR!