Though many of Long Island's towns and villages passed rules tightening regulations on homeowners who rent vacation homes and short-term rentals, the online rental market is thriving.
The higher interest rates coming from the Fed coincide with increased demand and pricing for Long Island rentals.
Homeowners have seen an increase in opportunities to earn rental income on their property in light of the limited available inventory.
Do you own a vacation property? You'll want to protect your investment with the right insurance coverage. Keep reading to learn everything you need to know about vacation rental insurance coverage.
Is Vacation Rental Insurance Different From a Typical Homeowners' Policy?
The short answer is yes. When you rent a property to clients for a short duration, there is a lot of turnover. That means a lot of different people coming in and out.
This increases the chances of damage to the property and injuries when using on-site amenities with which guests are unfamiliar.
Guests may also have large parties, increasing the number of people on the property.
In order to protect your property, your guests, and your "business," it's vitally important to have the right coverage.
Coverage Provided by a Short-Term Rental Insurance Package
When renting out a home as a vacation rental, it is considered a business activity. Therefore, additional insurance coverage is necessary. Let's look at what you need to stay protected:
Liability Insurance
This type of coverage comes into play if an accident occurs on the property during a guest stay.
It does not cover damage to the property but will cover you in the event that the guest decides to sue you. Legal fees and proceedings would be covered.
Multi-Risk Insurance
Property management companies recommend taking out a multi-risk policy. This type of policy covers fire, flood, hurricanes, and claims from third parties.
Additionally, it covers guest theft, electrical damage, and any weather-related event.
Employee Liability Insurance
If you have employees like landscapers, cleaning crews, or maintenance workers, employee liability insurance. They keep you protected in the event of an injury on the property.
Property and Contents Coverage
This is important especially if you have personal valuables on the property or in the home. This coverage will give you peace of mind if you have nice furniture, artwork, or expensive cookware.
Keep your property protected from damage and theft.
Additional Protective Tools
Some short-term rental insurance providers offer things like guest screening to identify problem guests. A background check scans databases that will find criminal records and credit histories. Hosts can reject any guest deemed problematic.
A damage waiver also helps cover the cost of damage to the property. The guest would pay a modest non-refundable damage fee to cover any potential damage.
Vacation Rental Insurance Coverage
Now that you know the ins and outs of vacation rental insurance coverage, you can make sure to protect your short-term rental/vacation home.
Do you know who can help you get the right insurance coverage to safeguard your rental income? We at Property Management Inc. Eastern Long Island are here for you.
Our experience in corporate leadership, local market knowledge, and property management allows us to offer services tailored to your needs and goals. Contact us today to set up a free consultation.
