Originally posted 9/30/21 - Updated 2/20/24
Managing rental property has changed over the years. Services like Airbnb and VRBO have opened up a whole new world of possibilities for earning passive income from secondary properties or even your own home!
Before you get too excited and start counting those dollar signs, though, it’s important to make sure you have the right insurance coverage to protect your interests. Some insurance companies do not offer proper rental property insurance for Airbnb or VRBO, but Arnold Insurance will work with you to help you get the right coverage to protect your property, your guests, and yourself.
What Kind of Insurance do You Need for Your Rental Property?
Whether you’re looking for insurance for Airbnb properties, insurance for VRBO properties, or a homeowners insurance policy for a rental property in general, there are a few things you should understand about your insurance needs.
Homeowners Insurance
It’s important to consult your current home insurance representative to determine if your policy offers protection for your possessions, property, and liability if you rent your property to others.
Renters Insurance
Many popular locations for rental properties are located in areas with greater risks for hurricanes, flooding, and theft. Consult your insurance provider to determine if you need additional coverage, through rental insurance, to protect your property.
Are you asking, “Do I need insurance coverage for my rental property?” The odds are good that the answer is a resounding, “Yes!” Even if you believe your homeowner's insurance is sufficient, it is important to make sure that certain conditions or situations do not nullify your existing insurance.
Additional Ways to Protect Your Rental Property
Beyond insurance, you need to protect your interest in your rental property. Fortunately, there are things you can do, including the following:
- Whether renting short-term or long-term, ask for a security deposit to cover minor damage to the property caused by guests.
- Inspect the property after every tenant leaves so that you know exactly which guest caused damage to the property and so that you can file claims to recover some of your losses.
- Don’t neglect your own insurance protection for liability, damage to the property, and more. Insurance is one of the most important investments you can make to preserve and protect your property and your finances. This includes homeowners’ insurance and rental insurance policies.
- Screen potential tenants before renting to them. Avoid renting to tenants who have a history of damaging rental properties. Don’t forget to read guest reviews about tenants who have rental histories before choosing to rent to specific short-term guests.
The idea of making a little extra money from your property is certainly exciting. With the right risk management efforts in place, it can also be highly profitable.
If you own rental property in the Midwest, make sure you contact one of the experienced agents at Arnold Insurance to discuss your options and to make sure you have the necessary insurance protection to protect your property, your personal finances, and your guests.
When you allow us to help with your insurance planning, you can turn your attention to more profitable pursuits, like earning passive income from your rental properties!
