Short term Rental Insurance in Vermont
What is short-term rental insurance?
Renting out a property for any duration of time presents certain risks. Property could be damaged, guests could be injured, and other losses or liabilities could arise. While traditional landlord insurance generally provides good protection for longer leases, short-term rental insurance may better protect Vermont residents and investors who focus more on short rentals.
Short-term rental insurance is specialized landlord insurance for rentals of a few days or weeks (depending on policy terms). These policies tend to be affordable yet provide good coverage.
What Vermont landlords need short-term rental policies?
Vermonters who rent out places for shorter periods may want short-term rental insurance. The insurance may cover a single room, primary residence, second home, investment property, or other places.
Exactly what constitutes a short-term rental depends on a particular policy’s specific language. Most short-term policies cover rentals that last a month or less, and many might even consider any rental shorter than 6 months to be “short-term.” Leases lasting 6 months or longer likely require more traditional landlord insurance.
Moreover, which type of insurance policy is needed normally depends on the duration of individual rental agreements. Short-term rental policies could still be suitable for properties that are rented year-round, but for a few days or weeks at a time.
What coverages do short-term rental policies come with?
The exact coverages that short-term rental policies provide likewise depend on a particular policy’s terms. Some common coverages that the insurance typically comes with include:
- Dwelling Coverage, which may cover the actual residence against damage and total loss
- Personal Property Coverage, which may cover personal belongings against damage and theft
- Liability Coverage, which may cover lawsuits arising from accidents that cause guest injury
Some policies might cover injuries that a pet causes to guests or instances where guests bring in bed bugs. An insurance agent who specializes in these landlord policies can help Vermont property owners determine precisely what a policy will protect against.
How can property owners get short-term rental policies?
Various types of short-term rental policies can be purchased a few different ways.
Most online rental platforms now offer some limited protection against damage, and possibly against lawsuits too. The extent of this coverage doesn’t necessarily provide protection against all risks, and it normally only applies when rentals are booked through the platform. If the coverage is included for free when listing on a platform, however, residents might as well take advantage.
A few homeowners insurance policies already include limited coverage for short-term rentals. Any included coverage that’s not obtained by an endorsement might only extend to one or two weeks of rentals annually. This could be enough coverage if renting out a home to skiers during the holiday and February breaks, though.
Some homeowners insurance policies have optional short-term rental endorsements. An endorsement could extend the property and liability limits that a homeowners policy already has for short-term rental situations. Any coverage procured this way likely only applies to renting out rooms or the house, and not other buildings. If available, this is usually the most convenient and affordable way to cover rentals of a primary or secondary residence.
Finally, specialized short-term rental policies are available if adequate coverage isn’t available through these other options. An insurance agent who’s familiar with short-term rental coverage options will be able to help assess these other options, and find a suitable supplemental short-term rental policy if one is needed.
How can Vermont residents get short-term rental insurance?
For help finding short-term rental insurance, contact the independent insurance agents at T.S. Peck Insurance. Our agents have worked with many Vermont property owners to secure the insurance coverages they need, and we can help you get short-term rental coverage for when you rent out a home or second property.
