Owner’s Vacation Rental property is a valuable and significant investment of a lifetime ultimately requiring for its safety and security. An important aspect keeping in mind the security and the protection of the property is its timely insurance. There are different types of insurance for the vacation homes before giving their property for rental purposes.
- Basic guidelines to start with insurance – Generally the inbuilt society association gives the property owners a master policy which covers the property on the common grounds such as risks of fire, earthquakes, floods and storms and allows for the insurance that is covered from any disaster outlined in the insurance policy. Therefore having property insurance would prevent you from such risks.
- Hurricane and Flood Insurance – Flood insurance are not covered under property insurance.Therefore, if your vacation property is located near the flood area or there’s always a high risk of natural calamities this insurance is apt for you which will not only give you additional protection but at the same time a sense of security as well. However, it is very important if buying a property in such area do your homework prior hand as having a property near the sea coast will be pretty expensive. For example – for a rental home near Miami beach in Florida or any vacation rental property located near the prime beach location one will have to pay higher rates in comparison to the property located a block away from the beach. On a simple note, property near the beach areas are expensive to own and expensive to rent and have high risk of hurricane.
- Personal liability insurance – This is the most common insurance as it protects the homeowners from the injury occurred inside the vacation house during the renter’s stay. For instance- If a renter falls from the terrace or fractures his/her bone or any other major injury the owner will be protected as long as they are covered under this Personal liability Insurance.
- Property Damage Insurance – While no one expects to damage a rental property, accidents do happen. Always encourage your guests before taking a booking to opt for property damage insurance that provides coverage to protect themselves from additional expenses should accidental damage occur to your rental property during their stay. Alternative you can also add the insurance amount in mandatory fee while taking a booking as it is quite affordable and only paid on per booking.
- Security Deposits – Security deposit is a very common practice followed by most vacation home managers for a booking. It is recommended to offer refundable security deposit rather than non-refundable deposit to encourage guest to refrain from damages to the property during their stay for getting their deposit refunded. Non-refundable security deposits can be riskier as some guests might take advantage thinking they have already paid for the damages.
- Legal Rental Agreements – Always ensure well drafted rental agreements in writing duly signed by both parties before arrival of the guest at the property. Proper rental agreements can be used to communicate about Do’s and Don’ts along with your House Rules and policies about refunds, maximum occupancy, children, smoking, and pets.
It is very important to protect the vacation home by purchasing the proper insurance policies at the right time. The vacation rental property can be a profitable and gainful investment; therefore it is very important you insure it at the right time with a careful study prior hand. With the right insurance covers not only you will enjoy peace of mind but your property will also be protected.