According to Visit Lauderdale, 32 million visitors flew into Fort Lauderdale International Airport in 2023. It's no secret that the city nicknamed the 'Venice of America' is a popular destination for tourists.
With such numbers, it's easy to see why the vacation rental market is thriving. As a host, you're certainly enjoying a steady flow of guests and loving every minute of your life. But what if all that goes away suddenly?
Short-term rentals are exposed to myriad risks, which is why owners need to purchase vacation rental insurance coverage. If your rental isn't already insured, keep reading to learn more about this policy.
What Does Vacation Rental Insurance Cover?
Some vacation rental owners don't purchase this insurance coverage because they already have homeowner's insurance. As such, they believe it's not necessary to get any additional cover.
For starters, although vacation rental insurance may cover some of the things a homeowners' insurance covers, the use of the property can render your home insurance void. If your home insurer doesn't know you're using the property as a short-term rental, they have every right to deny your claims arising from things like guest damage.
So, what exactly does vacation rental insurance cover?
Property Damage
Hosting guests comes with the risk of property damage, from unintentional damage to damage caused by intentional or criminal activity. If you allow guests to hold parties or come with their pets, your rental is especially facing a heightened risk of damage.
In the event of guest damage, your short-term rental insurance provider will cover the repair or replacement costs if a broken appliance cannot be repaired.
Liability Coverage
Operating a short-term rental property is like running a business. Business owners face liability risks, and so do you. Anyone from guests to employees or contractors such as gardeners and cleaners can get injured while on your property.
While not all injuries amount to a liability on your part, if it's established that the injuries occurred because of negligence on your part, you may be held responsible for their medical expenses and other costs.
Although you can do your best to make the property hazard-free, you can't completely eliminate the risk of third-party injuries. If it happens, you'll be thankful you had this insurance policy since it will cover the costs you'll be required to pay to the injured party.
Loss of Income Protection
The hospitality industry in Fort Lauderdale was hit by the COVID-19 shut-down measures. Many short-term rental owners took big losses simply because they couldn't stay open.
It's not just pandemics that can hurt your operations. Unforeseen property damage and regulatory changes can put you out of business for a while. In that case, your vacation rental insurance policy will step in and compensate you for the income you lost until the business resumes operating normally.
Vacation Rental Insurance Coverage Simplified!
Vacation rental insurance coverage is a must-have for Fort Lauderdale hosts. It protects you from financial losses in the event of guest damage, injury claims, and loss of income. All you need to do is find a reputable insurance provider in your region.
Know what else you need? A professional vacation rental management company to handle all your duties. PMI Premium Services is part of a nationwide property management franchise with cutting-edge tools and the expertise to provide excellent services.
Contact us to learn more about how we can support your vacation rental!
