ACTION STEP – Ask your insurance agent if your homeowner’s insurance policy includes short-term vacation rental coverage.
If it’s Covered, it Probably Won’t Include Theft
From our experience, many insurance companies that do offer coverage for Airbnb or VRBO rentals will have limitations on the theft portion of their coverage. Theft on short-term vacation rentals is high. As a result, insurance companies don’t cover much because they typically pay more in claims for these scenarios.
ACTION STEP – Ask your insurance agent what the limits are for theft if you rent your home short-term. If limits are too low, you may need to be careful with what you leave in the home.
Increase Your Liability Coverage
As mentioned in our umbrella insurance blog, one in 12 American have a chance of being party to a lawsuit. If you decide to rent a property on Airbnb or VRBO, your chances of being sued increase dramatically. Therefore, it’s wise to increase the liability limit of your rental property insurance policy to the maximum amount.
ACTION STEP – Call your insurance agent and max out the liability portion of your rental property insurance policy.
BONUS ACTION STEP – Call your insurance agent and purchase an inexpensive umbrella policy.
Thinking about renting your home short-term? Schedule an appointment with our agent, Brandon Ream, below. He would be happy to answer your questions to ensure you are properly covered.