As the world reopens after a 15-month shutdown, people are making up for lost time and experiences. On May 23, 2021, the TSA reported that 1.86 million people went through US airports, just 10% less than the same date in 2019. All this travel means that Short-Term Rentals (AirBnb, Vrbo, etc.) are returning to the lucrative venture that they once were.
However, risk never takes a vacation. There is significant risk exposure in owning these properties – fires, general property destruction, personal injury suits, just to name a few. Obviously, the size and complexity of your property increases your risks, but the question remains. Is your rental appropriately covered…meaning, will a claim be covered?
We frequently come across rental owners who cover their properties with standard homeowner’s insurance policies, rather than disclosing to the insurance company that the property is being used as a rental. Owners can be turned off by the high price tag of thorough short-term rental insurance (often more than twice the amount of a homeowner’s policy). This area of insurance is constantly in flux, but in the long term, it is never worthwhile to deceive an insurance carrier. Best-case scenario the claim is not covered, and worst-case scenario… you can imagine.
At Heritage Insurance Advisors, we know that insurance carriers read their fine print, because after all, they wrote it to protect themselves and potentially limit your coverage. If you or your clients own short-term rentals, we would be happy to read the fine print on their existing policies and walk them through their current coverages. At the end of the day, we strive to educate and help you add value to your client relationships.