Unforeseen events can be costly for any vacation rental property owner. From property damage to stolen goods and more, there are many issues that can affect both the property owner or host and the guests of a vacation rental.
Sadly, there isn’t much that can be done to resolve these issues once they have become fact. The only solution is to ensure that the property is under adequate protection via a specialized insurance policy. And given that traditional insurance doesn’t typically cover a wide range of events that can affect a vacation rental property, owners need to look towards short-term rental insurance policies. Here are 5 questions to ask when looking for a short-term rental insurance policy to ensure you are getting the best possible coverage.
- Why Should I Get a Short-Term Rental Insurance Policy?
This is the obvious first question. Short-term rental insurance is often cheaper than commercial or landlord property insurance and specifically tailored to cover short-term rental needs. A homeowner’s policy rarely provides full coverage, meaning additional protection is necessary. Few things can feel as disheartening as renting to earn a bit of money, then have to spend it on getting your belongings repaired or replaced.
Service-as-a-software (SaaS) company InsuraGuest Inc.’s Guest Protection Policy, sold to hotels and vacation rental properties through its proprietary InsurTech software platform, and extended to the guest from the time of check-in to check-out. It covers a wide range of liabilities, such as accidental damage to rooms, lost or stolen items, medical expenses, death or dismemberment.
InsuraGuest is complimentary to your current Homeowners and or General Liability insurance coverage. It becomes the first line of defense for the guest, which results in the first line of defense for the property.
- How Much Will It Cost?
To figure out how much the short-term rental insurance policy will end up costing you, consider the cost of premiums (your monthly, biannual, or annual payment), the amount of liability coverage or coverage for damaged property, and your deductible. Your deductible is the amount you’ll have to pay before the insurance provider pays for a claim.
- What Does the Policy Cover?
Liability coverage covers medical costs incurred if your guests are injured on your property. Vacation rental insurance reduces the cost of repair and replacement and recovers losses due to theft or damage to your personal property and belongings. Homeowners insurance won’t cover damages to the guests or to the property when it is being rented out.
- Am I Choosing the Best Company?
To make sure you’re getting the best provider, ask whether they offer the specific type of coverage you need and how long they have been on the market. You need to be sure the provider is financially stable enough to cover a claim. Another thing to look for is good reviews from existing customers. It’s important to be able to get in touch with an agent or customer service easily if you have any questions. You should also ask whether you might qualify for any discounts, or who is going to pay for the coverage. With companies like InsuraGuest, the premium payment is a pass through for the property to the guest at the time of check-in.
- How Do I Get the Right Coverage and Quotes?
How much coverage is enough? It’s a good idea to consult a professional, ideally an independent agent. That way you know what the rules for your state are and you’re getting the most current and accurate information. You need adequate coverage before you start receiving guests, even if you decide to buy a policy for home-sharing rentals.
Facts About the Vacation Rental Industry
The global vacation rental market is expanding rapidly, being projected to reach nearly $63 billion from 2020 to 2024, with a year-over-year growth rate for 2020 estimated at 5.51%. In 2019, vacation rental revenues are expected to reach $57.669 billion, from an estimated 297.17 million total vacation rental users worldwide. The entire vacation rental market is expected to topple the hotel industry by 2020 (http://nnw.fm/9PPg4).
InsuraGuest has outstanding prospects on the global market, intending to expand the scope of its InsurTech platform and insurance products to cover European Union member states and the United Kingdom, as well as Asia before mid-2020. The company currently provides coast-to-coast coverage in the U.S.
With the U.S. accounting for 20 percent of all vacation rental properties and Europe accounting for 60 percent, and Europe, Asia and the U.S. having a combined 6.5 billion hotel nights stayed, InsuraGuest will have access to a massive demographic and more than double its vacation rental opportunities. With the ability to easily integrate with most properties’ management systems, the InsurTech platform has the potential to access millions of properties worldwide.
About InsuraGuest. Inc.
InsuraGuest Technologies Inc. (TSX.V: ISGI) is a software company that utilizes its proprietary insurtech (insurance + technology) platform to deliver digital insurance to its customers. Its first product, InsuraGuest Hospitality, delivers custom Hospitality Liability coverages to hotels and vacation rentals. InsuraGuest coverages are purchased by the hotels and vacation rental properties, which can address covered claims from guests and their room occupants during their stay.
For more information, visit the company’s website at www.InsuraGuest.com