SHORT TERM RENTALS
You will want to ensure you are adequately protected in two coverage areas. First, confirm that you have the appropriate amount of coverage for your home and the belongings within. Second, ensure that you have sufficient liability coverage to protect against injuries and potential lawsuits. The typical homeowner’ s policy tends to offer either $ 300,000 or $ 500,000 in liability coverage, with some policies going as low as $ 100,000 or as high as $ 1,000,000. Is that enough coverage? With the increasing liability exposure and lawsuits frequently reaching seven figures, you should consider bolstering your liability coverage.
Securing an excess liability / umbrella policy is the best way to accomplish this. This policy provides additional liability coverage above your home liability. Coverage limits start at $ 1,000,000 and can be increased in $ 1,000,000 increments. When deciding on your coverage level, evaluating your exposure and assessing your family’ s net worth is crucial. You want to ensure you are protecting your family against the worst possible event. Your independent insurance advisor can help determine the appropriate limits for you.
By taking these protective measures, you can confidently enjoy the benefits of your short-term rental while reducing potential setbacks.
MAXIMIZING REWARDS, MINIMIZING RISKS
Short-term rentals through platforms like VRBO and Airbnb offer families an appealing opportunity to generate income and potentially accelerate mortgage payoffs while also serving as an accessible entry point into real estate
investing. However, these benefits come with increased liability and property risks that require careful consideration and proactive management.
To protect yourself and your property investment, it is essential to verify that your insurance coverage is adequate and tailored to the unique exposures of short-term rentals, whether through your existing carrier, a specialized insurer, or supplemental policies offered by the rental platforms themselves. Strengthening your liability protection, potentially with an umbrella policy, ensures greater peace of mind as you navigate this dynamic market.
By taking these steps, you can confidently enjoy the rewards of short-term rentals while protecting your family and your property. +
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