Lodging in Teton Valley, ID, is a multi-million-dollar industry; in 2022 alone, it brought in $37 million.
That should give you an idea of how lucrative it can be to run a vacation rental business here. However, it can also be risky, considering you're entrusting your property to strangers who may not always be respectful.
Still, there are ways to minimize those risks, such as getting the right vacation rental insurance coverage.
We'll tell you more about this crucial insurance policy, so read on.
Why You Need Vacation Rental Insurance Coverage
Imagine you've rented your beautiful pet-friendly property to a lovely family. One of your guests lit the candles you furnished but dozed off soon after. Unfortunately, the nearby magazines caught fire, spreading the flames to the carpets.
Your guests may have been able to put the fire out quickly, but not without causing some damage to your carpets first.
That's only an example, but it can happen in real life. Indeed, candles are behind 4% of reported home fires in the U.S.
If you don't have a vacation home insurance policy, you may have to pay out of pocket to repair the fire damage. But with the right policy, you'll get financial protection for sudden, accidental damage.
What Does It Cover?
A vacation rental insurance policy typically covers property damage and liability. Others also provide loss of income coverage.
Here's a closer look at each type.
Property Damage
This property rental coverage protects your rental's structural components and contents. It covers damage from accidents and other specified risks, such as severe weather and fires.
The covered items often include the following:
- Ceilings, walls, and floors
- Windows and doors
- Appliances
- Roofing, plumbing, electrical, and HVAC systems
- Carpeting
- Furniture
- Gadgets
Your policy will likely cover stolen items, too.
For example, suppose your most recent guests already checked out, and you're about to clean your vacation rental. While doing so, you discover your PlayStation 5 disappeared. If so, you can file an insurance claim for stolen property.
Liability Coverage
While we hope none of your guests will ever get injured on your property, it can happen. For instance, they may slip, trip, or fall due to slippery or defective flooring.
If that occurs, your injured guest may sue you. However, if you have liability insurance for rental properties, it should kick in and cover your legal costs. It may also pay for their medical costs.
Loss of Income Coverage
If a severe storm or fire causes your vacation rental to become uninhabitable, you'll be unable to rent it out. You'll lose income as a result.
Fortunately, some short-term rental insurance policies provide loss of income coverage. If you have this, you'll get compensated for the income you lose caused by covered incidents.
Protect Your Vacation Rental Properties
With vacation rental insurance coverage, you can protect yourself from liabilities and financial losses. That makes it a necessity, not a luxury.
PMI Grand Tetons can help you get the right insurance coverage for your rentals in Teton Valley. We provide full-service property management solutions, from marketing to property maintenance. We're also a proud member of PMI, a larger franchise with over two decades of property management experience.
So, call us today! We can discuss how we can help protect your properties through a free consultation.
