Understanding Vacation Rental Insurance Coverage in Ellicott City, Maryland

Understanding Vacation Rental Insurance Coverage in Ellicott City, Maryland

People regularly go without health insurance or auto insurance, but that's rarely the case for home insurance. At least 93% of all homeowners have some form of active insurance policy for their property.

Most homeowners insurance protects you from fires, floods, and other types of Act-of-God damage. In the short-term rental industry, that Act of God is your problematic guests. Do you need a vacation rental insurance coverage policy against the sort of people who trash Airbnbs?

Let's discuss what vacation rental insurance coverage covers in Ellicott City, Maryland, and if you should get it yourself.

Vacation Rental Insurance Coverage Types

A normal family property has a very different type of insurance policy from a short-term rental property. This is because there are usually only the same occupants, rather than high turnover from rowdy, unreliable vacation guests. A vacation rental property policy therefore focuses on liability and property damage, such as big, damaging parties.

Liability Insurance

Liability covers accidents relating to vacation guests while they stay at your rental property. It won't do anything if they break a window or put a hole in the wall. If they slip and break their leg, though, it might.

It's recommended that you take out such an insurance policy just in case the guests try to sue you. That way, you owe nothing in legal costs. You can continue to maximize your income regardless of a bad apple that goes after you for something that's not your fault.

Property and Property Content Coverage

Depending on what you have inside your vacation rental property, you'll need to insure it. This can include typical fire and flood insurance. Guests could accidentally short-circuit the toaster or crack a pipe.

As for specific property damage like breaking the TV or the furniture, you'll need to take out individual policies for these things. For very small things, the best strategy for managing your Airbnb rental is to charge fines. Simply have them agree to pay if they break something, policy aside.

Should You Get Vacation Rental Insurance Coverage?

It's hard to find any reason why someone shouldn't get the more specific insurance coverage types for rental management. Especially when you consider the high turnover. The insurance policy is almost always going to be cheaper than paying for various headaches out of pocket.

Luckily, you can take out policies specifically for what you need and nothing else. Most homeowner policies provide a broad sweep of coverage for a general purpose. Vacation hosting, based on your experience in this field, will teach you where those policies will have the most effect.

Find Property Management in Ellicott City, Maryland

Vacation rental insurance coverage doesn't work like your standard home policy. It's usually a series of policies on specific things, such as liabilities for guests and damage to contents such as furniture. There are very few reasons why someone shouldn't get an insurance policy for their short-term rental property.

PMI Old Line in Ellicott City, Maryland carries 20 years of experience and manages your properties with state-of-the-art technology. Get a free rental analysis and manage it with us.