The Basics for Short Term Rental Policies

Whether you have a stand alone home, a condo, a townhouse, or you're renting out your Airstream, these are the 4 basic coverages of a Short Term Rental Policy. The type of property you have and the scenario of which you rent it out does make a difference, so make sure you review your needs with a licensed and experienced professional.

1) Building Coverage: this provides coverage for your home. Everything from the roof down to the flooring on your bottom floor; you want to to ensure you have enough coverage to rebuild your Home in case your home burns down.

2) Contents or Personal Property : this includes things in your home or condo or townhouse like furniture, bedding, towels, pots and pans, etc. Most hosts don't realize just how much stuff they have in their properties until they have find themselves in the position of having to replace it all.

3) Loss of Income: now, let's remember that as a Host you are generating an income from this property, and this is essentially a business. As such you want to make sure you are covered in case your business is shut down due to a covered loss; whether it be from a fire caused by a guest or a burst pipe, or an over flowed bathtub, if you have to cancel bookings due to having to fix an issue due to a covered loss, NOT having Loss of Income coverage can really make a difficult situation even more difficult.

4) Liability Coverage: If I had to label which coverage was the most important for most Hosts; this would be the one. Ensuring that you have proper and sufficient - and I stress that word; sufficient - Liability Coverage is incredibly important. A simple trip and fall on your property can lead to major medical bills that you as the Property Owner could be found liable for and therefore have to pay. Even if you are found not at fault, you will still have to defend yourself in the lawsuit and having proper and sufficient Liability coverage - not to mention a policy that will defend you in case of such a lawsuit, is incredibly important. Although these are the 4 basic coverages on any short term rental insurance policy, these are 4 incredibly important coverages to consider. There are others that can be more important and or pertinent when it comes to your needs, so please be sure to speak to a licensed and experienced Agent.