Florida Vacation Rental Insurance Why You Need It
The rise of Airbnb and other related sites have made it easier for people to rent their homes as vacation rental properties for both short- and long-term use at an affordable cost. While customers are happy with this feature, this leaves some landowners at the losing end. Not all insurance companies cover rental insurance. Yes, there is such a thing and here are some of the reasons you should have the correct coverage if you are a landowner in the renting business:
What is Vacation Rental Insurance?
Like other insurance deals, a Vacation Rental Insurance allows you to file a claim should issues in your rental properties arise. Having the correct insurance protects you as a landowner of possible losses and legalities. The type of insurance you avail depends on the nature of your rental. Short-term and long-term rentals have different insurance rates and inclusions. Before shopping for insurance, make sure you know which type of insurance deal is the right one for you.
Generally, Vacation Rental Insurance includes compensation for loss of income due to the period of rehabilitation and repair. It also includes liability coverage. This means injuries sustained by the tenant or their guests while inside the property are covered by the insurance provider.
Some insurance companies, however, do not provide such services. With proper research, you can find an insurance agency for your vacation home in Florida that’s more applicable to your situation.
When Do You Need One?
If you rent out a part of your home rarely for a brief period of time, your property insurance providers can provide you with the coverage you need. If renting out your property or even a space in your home takes place regularly, for extra income or even for living itself, then getting a landowner’s insurance is advisable for your protection.
Landowners who rent out their property can now be protected by having the right insurance policies for renters. Know what you’re eligible for? Contact Vacation Rental Insurance Agency today to learn more and what coverage you need for your Vacation Rental Home and Property In Florida.
Vacation Rental Not As Advertised, Leading To Costly Mistake
Article from the Charlotte Sun
Author: David Morris is the Sun’s consumer advocate. Contact him c/o the Sun, 23170 Harborview Road, Charlotte Harbor, FL 33980; email firstname.lastname@example.org; or leave a message at 941-206-1114
Sandra and Larry Taylor have many enjoyable memories over the last eight years traveling south from Ontario, Canada, for three months every winter.
This year, the couple picked Venice because of its “small-town atmosphere.” However, the visit was a memory they’d soon like to forget.
The Taylors found a good-looking property online at VRBO.com. When Larry made a booking request, the owner called back offering a discount of $1,500 if they booked directly with him, rather than through the VRBOsite. Considering the savings“substantial,” Larry mailed a $2,900 check for the first month’s rent. It turned out to be a costly mistake.
That’s because upon arrival, Larry described the conditions as “despicable,” including malfunctioning water taps, sticky floors and roaches. He said they had no choice but to leave, not paying the $5,800 balance owed. The owner refuses to refund them any money. VRBO is part of the HomeAway vacation rental platform, which also includes VacationRentals.
com. HomeAway, in turn, is part of the Expedia family of brands,including Trivago, Hotels.com, Travelocity and Orbitz. HomeAway claims its three sites represent some 1.2 million rental property listings worldwide. Property owners and renters each pay fees to HomeAway to use the platform. It appears the nonpayment of those fees — by circumventing the VRBO site — substantially comprised the Taylor’s offered “discount.”
Unfortunately, by not booking and checking out through VRBO, the Taylors became ineligible for HomeAway’s promised “Book with Confidence Guarantee.”
It protects against listing fraud, denied entry or significant property misrepresentation, along with providing rebooking assistance and help in recovering wrongfully withheld security deposits.
“While we strongly discourage against travelers and owners from paying outside of the HomeAway system for numerous reasons, it’s not a violation of a policy that would make a traveler eligible for protection or reimbursement,” explained HomeAway’s Jordan Hoefar, who forwarded the complaint for review.
However, even if the Taylors had booked through the VRBO site, the property misrepresentation protection guarantee isn’t absolute. Reading the fine print discloses it doesn’t include refusal to take possession on the grounds of cleanliness, or minor or temporary defects. And all claims are decided on a caseby- case basis.
The takeaway here is best summed up by the Federal Trade Commission: “When you’re looking for a rental, it’s caveat renter — renter beware.”
“Some scammers hijack a real rental listing by changing the email address or other contact information, and placing the modified ad on another site,” warns the FTC. “In other cases, scammers have hijacked the email accounts of property owners on reputable vacation rental websites. Other rip-off artists make up listings for places that aren’t for rent or don’t exist, and try to lure you in with the promise of low rent, or great amenities. Their goal is to get your money before you find out.”
The best advice? Don’t rely solely on provided photos, which can bedated or doctored.
Consider asking the property owner for a live tour using Apple’s FaceTime app or Skype.
Read property reviews.
Get a copy of the rental agreement before making a payment. And don’t wire money or send a check. Use a credit card, which allows you to dispute a charge.
Finally, remember, travel insurance policies don’t normally cover vacation rental fraud.
David Morris is the Sun’s consumer advocate. Contact him c/o the Sun, 23170 Harborview Road, Charlotte Harbor, FL 33980; email email@example.com; or leave a message at 941-206-1114.
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Vacation Rental Insurance article of interest:
Renting out your property to seasonal guests can be a great way to earn additional income, but there are several pitfalls you must avoid to make it successful. Let Vacation Rental Insurance
New Exclusions Could Make Your Insurance Policy Worthless If You List Your Home Online | Airbnb, HomeAway, Flipkey
Renting out your property to seasonal guests can be a great way to earn additional income, but there are several pitfalls you must avoid to make it successful.
Before charging guests to stay in your home, you should consider the risks associated with it. For example, if a renter damages your property or if someone gets hurt during their stay, who is going to bear the legal and financial liability? More importantly am I covered if I list my property online on sites like Airbnb, HomeAway, or Flipkey?
Vacation Rental Insurance Agency Recommends, you speak with an insurance professional to find out what your current homeowner’s policy actually covers. In the last past year the Florida Department of Insurance Regulations approved policy language that has allowed one of Florida’s largest insurers to exclude coverage if your home is listed on a home sharing site. Other companies can now very easily add this language to their policies and it could have devastating consequences to you if you have a loss.
Q: If my home is listed on Airbnb, HomeAway or Flipkey how does this new exclusion affect me?
A: The exclusion that was added that excludes damage under section 1 of your policy state the following:
Home Sharing/Bed and Breakfast, including covered losses, on homes or condos or any part thereof, arising out of participation in home sharing or bed and breakfast program such as Airbnb, Flipkey, Homeaway, where homes/condos are rented for days, weeks or months.
In basic terms this mean that once your home is listed on one of these sites you know longer have coverage if your house burns down is damaged or someone is hurt or injured on your property.
Q: What coverage do I have if I only rent out my property for a single occasion?
A: Under the new exclusions your property is listed on Airbnb, HomeAway, or Flipkey or any other home sharing site you probably don’t have coverage regardless of how many times you rent it. VRI Agency has partnered with a select group of companies who don’t have this exclusion and will provide coverage for this type of activity.
Q: What happens if a paying guest steals my property or damages the home during their stay?
A: Once again, you are probably not covered. Most policies have exceptions for theft when the theft takes place in the part of a residence that is being rented to a paying guest. Additionally, because most homeowners and renters policies exclude property damage to a rental property, the paying guest may not have coverage through their own homeowners or renters insurance if they damage your property. You would want to make sure the paying guests have the capacity to pay for any damage they may cause to your property and collect an adequate deposit.
Q: Am I covered if my guest injures somebody or causes damage to an adjacent property?
A: Your personal liability coverage most likely will not extend to a guest, so you may be legally obligated to pay for another person’s injuries or for damage to their property. Once again, the guest would have to rely on their own policy if they have one.
Q: How can I ensure the rental process goes smoothly?
A: Once you have thoroughly discussed your policy with Vacation Rental Insurance Agency and are satisfied with your coverage, conduct a thorough interview of any potential guests before they arrive. Have a screening service provide an overview of a candidate’s background. Ask for identification, do reference checks, and ask for a deposit (much like you would do when taking on a rental tenant as a landlord).
Why You Need a Dwelling Insurance Policy for Your Rental Property
Have you recently purchased a holiday home? Do you have plans to rent it out? Before you post rental ads on the Internet, you need to protect it first with the right insurance policy. After all, vacation homes do not come cheap and renting them out without insurance puts them at high risk for costly damages.
Which Insurance Type Should I Get?
It is likely that you already have your mind on a homeowner’s insurance for your holiday property. However, you must understand that this type of policies are often expensive and more importantly, they rarely or don’t cover rental activities at all. This means once a tenant accidentally damaged your property, your homeowner’s insurance won’t cover the said damages. Hence, you need a policy that suits your needs as a rental property owner.
Is Dwelling Insurance Policy an Ideal Choice?
Compared to a comprehensive homeowner’s insurance, the dwelling insurance policy is more affordable. This type of insurance covers the structure of your property once it got damaged due to certain and specific perils. More often than not, the named perils include fire, lightning, hail or sleet, wind damage, riot, explosion, and sinkholes. You can add particular hazards in your dwelling insurance, including earthquakes and vandalism.
Typically, rental properties do not contain valuable possessions of the owner. Hence, you don’t essentially need a full coverage; a dwelling insurance policy will suffice. But to make your property protection stronger, consider tenant occupied dwelling insurance. In this type of policy, you can add rental-specific perils such as water damage, burst pipes, and broken windows and doors. After all, these are the hazards that will likely occur in your rental property.
When renting out your holiday home, you likely want to earn extra money. But without the right insurance, you are only at risk for spending more money when you put up your property for rent.
If you want to know more about dwelling insurance policy, Vacation Rental Insurance Agency can assist you. Call us today to get started.
Managing the Risks of a Vacant Holiday Home
It’s almost everyone’s dream to own a vacation home in a nice location away from the bustling city. But vacating a home for a long time makes it vulnerable to many external and internal risks. Protect your dream home and financial interests by managing these risks.
Theft and Vandalism
Vacant homes, especially in high-traffic areas, attract thieves and vandals. Keep your furniture and belongings safe by installing reinforcements to the windows and doors and keep the security system activated. Ask a friend or hire someone to keep an eye of your house regularly. And finally, be cautious when sharing private information to your social media pages.
Fire and Water Damage
A vacant home tends to wear faster than when it is occupied and constantly used. Without proper seasonal maintenance, structural components might weaken. If possible, it pays to check up on your holiday home once in a while to inspect potential damages and give it some seasonal TLC. Weatherproof your home, especially the pipes and wood components, before the next season sets in. Fire-proof your home during wildfire season or protect your losses with a dwelling fire insurance policy.
Insurance carriers tend to take away important coverage when they discover that the owners have vacated the home, regardless of the length or purpose. The risks are even bigger if the home is left vacant, meaning there is little to no furniture or personal belongings left within the property.
Protect your home from uncovered losses by switching to an alternative insurance carrier that specializes in unoccupied vacation homes. This niche specifically targets your special needs. But since the market has grown over the years, so did the options.
To help you decide which coverage fits your situation, it’s wise to talk to an insurance agency specializing in vacant or unoccupied vacation homes such as VRI Agency. If you’re planning to rent out the property, we also have specific policies for that.
Get in touch with one of our agents today and we’ll gladly discuss your options with you.