Airbnb insurance Insurance in Vermont
What is Airbnb insurance?
Online short-term rental platforms have created new opportunities for property owners. Renting a property through one of these sites comes with some risks, however, as property damage or guest injury could occur during any rental. One way that Vermont property owners who list on these sites can protect their properties and themselves is by purchasing Airbnb insurance.
Airbnb insurance policies are specialized landlord policies for short-term rentals. Most Airbnb and Vrbo policies protect against both property and liability risks.
Who in New Hampshire needs Vrbo insurance?
Most Vermonters who list properties on Airbnb or Vrbo should consider Airbnb/Vrbo insurance. Policies may cover primary residences, secondary residences and investment properties.
The need for this type of issuance has increased as online rental platforms have grown exponentially. There are a variety of ways that Vermont property owners might rent out their properties on these platforms, and thus need this insurance:
- State residents might rent out their entire home during the holiday and February breaks
- State residents might regularly rent out an in-law apartment or single room
- Out-of-staters who have ski chalets might rent out their property when not using it
- Anyone who has a lodge or off-grid property might periodically rent out the cabin
- Investors who have purchased properties for Airbnb/Vrbo might regularly book rentals
Whether traditional landlord insurance, Airbnb/Vrbo insurance, or some other short-term rental insurance is best depends on the particulars of a situation. An insurance agent who specializes in Airbnb policies can help property owners determine which insurance is most suited for their rental situations.
What coverages do Airbnb/Vrbo insurance policies come with?
Airbnb/Vrbo insurance policies typically come with a few protections, which help protect against multiple risks. Some of the coverages that these policies could offer are:
- Dwelling Coverage, which might protect against damage to the rented building
- Personal Property Coverage, which might protect against damage to/theft of belongings
- Liability Coverage, which might protect against accidents resulting in guest-filed lawsuits
Some policies could offer other protections, as either standard or optional features.
Do Airbnb and Vrbo offer hosts any insurance protection?
Both Airbnb and Vrbo grant hosts access to various property and liability protections. The particular details of what each platform offers differ slightly, but the general principles hold true.
Airbnb and Vrbo each usually grant access to a $1 million liability insurance policy. The protection may be offered for free, or for a nominal additional charge. It could act as either a primary or secondary liability policy.
Before relying solely on platform-provided liability coverage, hosts should consider the potential expense of a liability lawsuit. Should someone drown in a swimming pool, go into a coma from a freak accident, or otherwise be seriously injured or die, the resulting liability lawsuit could be extremely expensive. It could exceed $1 million in legal fees and a settlement. For this reason, additional liability coverage might be recommended.
Airbnb and Vrbo each also usually offer coverage for damage, possibly including damage to both the dwelling and to belongings. The coverage might be included as a standard feature, or available for a nominal charge. Whether platform-provided damage coverage sufficiently protects against possible causes of damage depends on a platform’s specific provisions. Additional damage coverage might be recommended.
Both liability coverage and damage coverage can be procured at affordable rates through an independently purchased Airbnb/Vrbo policy. An independently purchased policy should also ensure the same coverages are in place regardless of which platform a listing is booked through.
How can Vermont hosts get Airbnb insurance?
For help insuring a Vermont Airbnb or Vrbo, contact the independent insurance agents at T.S. Peck Insurance. Our agents have helped property owners insure their residences and investments in many different situations. We’ll make sure you get the Airbnb insurance you need.