Opening your Noblesville, IN home up to short-term renters can be a great way to earn passive income. At the same time, it also comes with its own set of risks.
Vacationers could not only damage your property, but they could hurt themselves on your premises. Without any type of insurance protection in place, you could be left holding the bill.
Vacation rental insurance coverage can protect you from this unfortunate outcome. Today, we're sharing what this policy provides and why it's so important.
What Does My Insurance Cover?
If you own a vacation property, you need a specialized policy designed around your needs. This is different from your personal insurance policy, which has its limits and may not apply to every circumstance you encounter.
Also called short-term rental insurance, a vacation rental insurance policy should cover these three main areas:
- Liability coverage
- Property damage
- Loss of income
Let's explore these a little further.
Liability Coverage
If a guest gets hurt while staying at your property, your liability coverage will kick in. Not only can it help cover the costs of their medical expenses if required, but it can also help pay for your legal costs if the guest decides to sue you for damages.
This may happen if something at your property caused the injury to occur. For instance, if you have slippery gravel near your front steps, a guest might fall. If you don't have any kind of liability insurance in place, even minor soft-tissue injuries can be very expensive to cover.
Property Damage
While you'd like to assume that guests would treat your vacation home like their own, this isn't always the case. Even if they are incredibly respectful, accidents can still happen. This is especially the case if you open up your property to pets or small children.
If a guest breaks something valuable at your property, would you have enough money in savings to cover it? With property protection, you don't have to. This policy can issue a payout to help you cover the costs associated with a repair or replacement.
Loss of Income
Finally, your policy should also cover you if you can't rent your property out for some time. Whether you're dependent on your rental income or it's a supplemental side gig, you can feel the strain when weeks or months go by without a guest.
Most of the time, these events are outside of your control. For instance, a heavy storm might require you to shut your doors for a while, so you can focus on repairing your roof or removing yard debris. With loss of income coverage, it's easier to get back on your feet.
Learn More About Vacation Rental Insurance Coverage
In your quest to open your Noblesville vacation home up to guests, you might have skipped one important step: investing in vacation rental insurance coverage. The good news? It's never too late to sign up.
In a perfect world, you'll never need this policy. Yet, you'll be glad it's in place if you do.
At PMI Indianapolis, we can help you manage every part of your vacation rental, so you don't have to think twice about processes like these. Contact us today to schedule a consultation!
