The short term rental industry is a great way for investors to make some extra money, and some property owners have even turned their small scale operations into huge cash generating businesses. However, as with any industry, the rental industry has its own risks associated with doing business.
As a short term rental owner, one of your biggest fears is most likely coming back to your property after it has been rented, only to find your renter has caused significant damage to your property. Many property owners may think that these types of damages are covered in the homeowners insurance. However, this is not the case for many owners, and the insurer may have even terminated the policy once it is discovered that the property is a business asset.
This is why vacation rental damage insurance is so important for property owners. Due to the natural wear and tear of properties, as well as some unfortunate guest accidents, a complete policy that covers any type of guest damage is the safest bet when it comes to safeguarding your property. While you may think a monthly payment may not be worth the chance of major damage, many property owners who had similar thoughts have been stuck with massive bills due to damage to their properties. In other words, it’s always better to have it and not need it than to need it and not have it!
When it comes to tallying up the cost of damage insurance, it can be rather tricky to come up with a ballpark number. This is because the cost will heavily depend on several factors, such as:
If you are looking for a quick generic range, property owners in 2021 typically saw costs between $1500-$2500 annually for their vacation rental damage insurance policies.
When choosing an insurance provider to cover your damages, you should always weigh the pros and cons of each policy each provider offers. What may be the right fit for someone else’s property may not be the right fit for your property, and you should be careful just simply going with the cheapest policy.
If you have a property with expensive amenities such as a hot tub or a pool, it may be wise to go with a more expensive policy that covers your larger assets. If your property has basic amenities that will only run you a couple hundred dollars if damages, a cheaper policy may be all you need to cover your property.
There are hundreds of insurance providers with many different rental damage policies, and each provider will have their pros and cons. Some of the best providers we have discovered based on customer reviews include:
Again, while many customers may believe these providers are great, the may very well not be the right provider for you! You should always research many providers and compare, factoring in cost, coverage, and everything in between. Happy hunting!
If you are a property owner looking to maximize your vacation rental business efficiency, Uplisting is here to help! Our vacation rental software allows you to automate the small tasks associated with booking, customer service, and many other aspects so you can focus on scaling your business. Contact us for any questions you may have about Uplisting, or join one of our live webinars to see how you can use Uplisting software to grow your rental business!
We’ve built an all-in-one property, channel management and automation tool to help property managers scale seamlessly.