You have many factors to juggle for maximizing rental income from your vacation property. Filling vacancies as quickly as possible, finding reliable tenants, and being proactive about property maintenance are just a few rental income strategies.
One area you may not have considered is vacation rental insurance. Insurance can help you increase property profits over time. You're protected from expenses that result from covered losses.
Learn more about vacation rental insurance and how it can help you get more income from your rental property.
Is Vacation Rental Insurance Worth the Cost?
The short answer is yes. If you rent out your vacation property for money, your homeowner's policy probably doesn't cover it. Insurance companies consider renting for money to be a business activity.
If your vacation rental is in a building with its own insurance, their policy probably doesn't cover the interior of your property. You need renter's insurance.
Without a dedicated insurance policy, you would need to cover the cost of repairing any damages. Insurance premiums are an expense, but they can save you from a much larger expense later.
Types of Vacation Rental Insurance
Choosing the right type of vacation rental insurance will help you get coverage that fits your situation. You don't want to pay for coverage you don't need or be left with repair bills.
Short-Term Rental Insurance
Short-term rental insurance is designed for people renting out their property for 30 days or less. People who list their rental on short-term rental sites often choose this type of insurance.
Landlord Insurance
If you rent out your vacation home full-time, you probably need landlord insurance. Landlord insurance includes property protection and liability protection.
Optional additional coverage includes:
- Vandalism
- Burglary
- Construction
You may or may not need this coverage, depending on your situation and the location of your rental.
Rental Rider
If you don't rent out your property very often, a rental rider to your homeowner's policy may be enough. Not all insurers offer this option, though.
What to Look for in Vacation Rental Insurance
Your vacation rental insurance should cover three main categories:
- Property protection
- Liability coverage
- Loss of income
Property protection insurance covers damage to your property and its contents. It covers accidental damage as well as intentional acts like vandalism.
Liability coverage helps protect you if someone gets injured on your property. It will cover legal fees and settlements up to the limits of your policy.
Loss of income insurance can compensate you if you can't rent your property temporarily due to a covered loss.
You should verify the types of natural disasters your policy covers. If you live in a flood-prone area, you'll need a separate flood insurance policy.
Start Maximizing Rental Income Today
You can take many steps to start maximizing rental income from your property. One way to boost rental yield over time is with vacation property insurance. Insurance protects you in the event of damage to your property or another covered loss.
Insurance is just one of the many details you need to manage for your vacation rental. PMI Professionals in Murfreesboro can help. Our expert team can help you increase property profits from your short-term rental.
Schedule a consultation with PMI Professionals in Murfreesboro today to learn how we can help you get more from your vacation rental.
