Does it surprise you to learn that the U.S. corners the market in the Travel & Tourism department (World Travel & Tourism Council)? With so many wonderful domestic locations to check out, it's no surprise that America has tons of fun destinations to visit.
Santa Fe, New Mexico is one of these ideal locations, which means that vacation rental insurance coverage is something landlords simply can't overlook. This protects them and their properties when renting them out.
There are several policies to choose from, each serving a unique purpose. Here's what you need to know about vacation rental property insurance.
Rental Property Protection for Homeowners
Any time you rent a property for money, it becomes a business transaction. This means that your existing homeowner's policy won't come into play should you need to access it. Regardless of how much money you rent your property for, the moment funds exchange hands, it becomes a business matter.
Keep in mind that renter's insurance protects tenants. Landlords need their own separate policy for any vacation property. Typically, this is a short-term insurance policy.
If you're renting a condo or townhouse -- or other dwelling inside a Home Owners Association (HOA) -- they most likely won't be responsible for anything that occurs inside your home. The same holds true for umbrella policies, as these typically don't apply to business activity.
What's Included With Short-Term Insurance Policies?
As with any type of policy, short-term insurance is, in theory, designed to protect landlords and their Santa Fe vacation rentals. Just be sure to research a company before agreeing to any policy, and always ask questions about exactly what's covered -- or read online reviews from other landlords.
For example, Santa Fe vacation rentals can find protection from the following:
- Theft
- Vandalism
- Any other type of planned damage
Since homeowners insurance won't cover this, you'll need a special short-term rental plan.
Should you allow pets in your rental property, some rental insurance plans have coverage for any accidents that might occur. Other benefits include protection from bed bugs, fleas, and other unwanted pests. According to Sleep Doctor, upwards of 14% of travelers encounter bed bugs, so it's important to be proactive about this situation, and insurance can help out in this area.
When investing in renter's insurance, landlords receive peace of mind that their buildings and belongings are protected, so long as they know what their policy covers. This means imposing rental cost valuation best practices, and working to replace any broken items that fall within the parameters of what's covered.
A reputable short-term rental insurance provider won't have restrictions with occupants, so if you book a house for an entire extended family, you'll still have all the coverage you need to protect your property.
The Necessities of Vacation Rental Insurance Coverage
As a landlord, vacation rental insurance coverage is an absolute must. Don't assume that just because you rent your home, your existing homeowner's insurance policy covers any damage. Quite the contrary, as rentals are considered business ventures, and homeowner's insurance doesn't apply.
If you're looking for assistance with your rental and need someone to handle insurance claims, rent collection, maintenance requests, and then some, PMI Santa Fe can help. We offer unparalleled property management services in Santa Fe, New Mexico. Contact us today at 505.663.7779 or book a free consultation.
