Insurance for your Airbnb™, Vrbo™ or Vacation Rental Home

By on August 2, 2021

Short-term rentals have become extremely popular within the last few years. Booking a vacation home through Airbnb™, Vrbo™, or similar rental services is just as common and simplistic as a hotel stay! Short-term rentals are a great set-up for both guest and owner, although it takes more than just turning over the keys! Whether you are renting out your entire home or just one room, getting the right insurance to protect your space is more important than you may think!

It’s a hot summer day in Michigan (sounds impossible I know) and your second home just got booked for the weekend. Of course, as the owner of the property, you have high hopes that the renters will be respectful and contact you if there are any issues, however, this is not the case. After their stay, the renters leave and you enter, with no knowledge of damage, to find a hole in the bathroom door, several rips in the screen, and even fire damage in the kitchen. What do you do now?? That is where Short-Term Rental Insurance comes in and the importance of having the right coverage!

For short-term rental insurance for your Airbnb™, Vrbo™ or vacation rental house there are a few options that can provide you with the coverage that you need.

  1. Home Owners Insurance Policy
    • Insured/Owner uses the residence more than it is rented
    • Package of coverages: Includes the dwelling, in addition to its contents (furniture, etc.)

Your family owns a cottage in Northern Michigan that you take several trips to during the summer months! On the weeks you are unavailable to visit, you decide to rent out your home to others. You list it as a vacation rental on Airbnb™, Vrbo™, and proceed to schedule bookings opposingly to when you will stay. Although there are some rentals occurring at your cabin, it is mainly used as your seasonal home and may be covered under a Homeowners policy.

  1. Dwelling Fire Policy
    • Insured/Owner has little to no personal use of the property
    • Rented out a majority of the time
    • Individual coverages: A-La-Carte protection for buildings, personal property (contents), loss of rents, etc.

Your family purchases a second cottage in the same Northern Michigan town to create another vacation rental. Although, this home will mostly be used as a short-term rental and rarely by your family. This cabin would likely be better covered under a Dwelling-Fire policy.

It is always important to talk with an insurance agent to determine which policy best suits you and your short-term rental! Good communication allows them to fully understand your situation and place you with the correct coverages and company. Give our agency a call at 517-347-1466 to speak with a trusted agent and receive a quote for your vacation rental today!

By: Morgan Arnouts and Brandi Schonter


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