BiggerPockets Daily What Kind of Insurance Do You Need for Short-Term Rentals?
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Dec 24, 2024 Thinking of diving into short-term rentals? Discover the crucial insurance types you need to protect your investment. Learn why regular homeowners insurance won't cut it for rental properties. Understand Airbnb's limited coverage and the risks of liability, property damage, and guest injuries. Gain insights into essential coverage options, including recommendations for specific insurance providers that cater to your needs. Stay informed to avoid costly surprises while maximizing your rental income!
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STR Insurance Needs
- Don't rely on standard homeowner's insurance for short-term rentals (STRs), as it doesn't cover the unique risks.
- Review your policy and consider add-ons or endorsements before renting.
Airbnb Insurance Overview
- Airbnb offers Host Damage Protection (up to $3 million) and Host Liability Insurance (up to $1 million).
- Understand the coverages and limitations of both to avoid surprises.
Insurance Types for Different Rental Durations
- Obtain necessary insurance based on rental duration: homeowner's (short-term), landlord (long-term), or business (regular income).
- Consider a commercial policy with an umbrella policy for broader protection.