Experts predict that the vacation rental market will grow at a compound annual growth rate (CAGR) of 4.7% through 2030. Are you one of many real estate investors getting into the game?
Now is the time to get ready for the peak Columbia tourist season so your property is ready for guests come May.
Finding the right insurance provider, deciding on pricing, and adding the right touches are part of the prep leading up to filling your property with vacationers.
Before renting out any of your Columbia real estate properties, it's critical to understand vacation rental insurance coverage. Keep reading to learn more about it.
What Is Vacation Rental Insurance?
Also known as short-term rental insurance, vacation rental insurance is a type of homeowner's insurance policy that covers losses that occur on a property that guests rent on a day-to-day or week-to-week basis.
With that much turnover, it's important to have insurance to cover the risks that go with it.
What Does It Cover?
There are different short-term rental insurance packages available depending on the type of property you own, the location, and your business needs. What do you want to protect? Which option suits your needs best?
Let's take a look at what vacation rental insurance covers for your Columbia property.
Liability
Liability insurance covers accidents and injuries that occur on the property while you have short-term renters there. It does not cover damage to the property but it will cover legal costs if the guest decides to sue you.
If you have landscapers, a cleaning service, or other maintenance workers on the property, you should have employee liability insurance as well.
Guest Screening
This is not exactly insurance, but a couple of insurance companies employ a comprehensive guest screening system that can perform a background check.
These systems scan various databases like criminal records and credit history. If a guest gets flagged, the host can reject the booking. Eliminating potentially problematic guests reduces your risk.
Property and Contents Coverage
To have the ultimate coverage, take out a multi-risk policy to cover flood, fire, hurricanes, third-party claims, guest theft, electrical damage, and other weather-related events.
Coverage is also available that protects the property and its contents from damage or theft.
Damage Waiver and Security Deposit
Having guests sign a waiver and pay a security deposit is a type of "insurance." Homeowners can use it to keep from paying out of pocket for any damage guests cause while staying in their rental house.
Did a guest break a chair or spill wine on the carpet? You can take the money from the security deposit to repair or replace the damaged items.
Vacation Rental Insurance Coverage
Now that you know everything you need to know about vacation rental insurance coverage in Columbia, SC, the next step is getting insurance for your properties.
Do you know who can guide you toward the right types of insurance for your vacation property? Check out the team at PMI Soda City. We specialize in maximizing the potential of your short-term property rental.
Set up a consultation through our website or by calling 803.728.2999 to discuss how we can help you increase revenue on your property.
