We know that you love going on vacations with your family and friends every now and then. Therefore, we believe that the recent growth of major digital platforms and vacation rental marketplace like Airbnb, Flip Key, HomeToGo have made your vacation even more fun and exciting. Even more so, you as a rental property owner can make additional income using these applications, where you can deal with your tenants online without the hassle of even meeting them in person. However, uncertain events are just a blink of an eye away from damaging your rental home/property, tenants, and their property as well as your own personal property. Therefore, like all other insurance plans, we recommend that you insure your rental property insurance
What is rental home insurance?
The is an insurance coverage policy that protects you and your tenants against any unfortunate event. This insurance policy will primarily help you cover property damage which includes the disfigurement of the structure in case of explosion, fire, etc. Secondly, under the aspect of liability insurance cover, it will also help you cover the cost of harm or injuries that your tenants may have had incurred as a result of your faulty property e.g. slippery flooring, gas leakage, broken roof, etc. In addition, liability coverage will also provide a cushion to any legal cost e.g. your tenant filing a lawsuit against you for failing to inform them about any faulty element of the property. Moreover, it will also provide medical assistance or aid in case of an injury.
What you need to know about your Property Insurance plan
A property insurance plan is a list of different insurance policies or types of property insurance such as Homeowners, rental property, and vacant property insurance. But, it is important to check with your insurance company what they are offering under each type or category. When purchasing either of the insurance policies it is highly important to keep the following things in your mind:
- Every property insurance policy offers a wide range of options to protect the property, but they serve very different purposes and aims. For instance, a homeowner’s insurance Is chiefly targeted towards you, the home you currently reside in, and not your rented property. Homeowner’s insurance policy will be able to provide zero to no security in case of harm or wounds incurred by you and the tenants respectively.
- If you are a rental property owner who often rent’s out their property on a short-term irregular basis on for instance vacation rental marketplaces, it is important to remember that in most cases your homeowner’s insurance again provides almost zero assistance. This also includes property damage or wounds that are intentionally or unintentionally caused by visitors.
- Your property insurance may also exclude any damage you might have incurred while you are running a commercial business within your home, rental property, or vacant property boundaries. It is crucial for your safety and security of your business to always inform your insurer in case you are hosting a commercial activity so that if you incur any damage in an accident you or your business is not adversely affected.
- As a landlord it is also important to check if your insurance company facilitates short-term claims of damage.
- In different locations your insurance provider may offer different coverage options for your properties. So, it is also important to check with your insurer which coverage options are they providing in every location you might have rented out your property.
Therefore, we recommend you to check with your insurer what insurance policies they provide for your separate properties.
Types of insurance coverage you require:
If you are a landlord who often rent’s out their property on a short-term irregular basis, you should make sure that you have the following rental insurance coverage options ticked off:
- Structural damage: This includes any sorts of damage to the building structure caused either by destruction, vandalism, accidents, or natural causes e.g. earthquake, floods, etc.
- Liability coverage: This basically covers the loss of your tenant/guest’s property, their personal injuries, and liabilities such as legal defense. It will cover the expense such as medical and financial aid to the tenant for loss of their personal property.
- Personal property of content coverage: If you are a landlord renting out their vacation rental property or traditional property, it is very likely that you have already furnished the property you are renting out to someone. This means that the house you are offering will have basic necessities such as appliances, furniture, cutlery, decoration, or any other personal property at the place. So, in an accident that destroys any or all of your personal belongings, it will be covered under your insurance policy.
- Fair Rental Value Coverage of your income which you lost if your property was ever deemed uninhabitable due to a covered loss. Your insurance provider will compensate for loss rent by reimbursing the amount that you may have otherwise earned in the period your home was inhabitable and put for repairs. In addition, the insurer will also cover the cost that you would incur from out of your pocket.
Vacation and traditional rental properties are a great way to make a substantial passive income, wealth as the land or property value appreciates, develop a real estate business, and get tax advantages. Thus, we at the insurance company recommend that you get yourself a property insurance package plan as we believe that the safety of your guests and income is not only your priority but also the out foremost priority to protect you against any uncertain event that could cost you financially and legally.
Our insurance company will offer you a range of coverage options on all your properties as well as vacation rental properties. This provides you with the major coverages you need with the addition of benefits from our program that are targeted towards investors and real estate business owners. This will include housing all of your properties on one schedule, monthly payment, and reporting.