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For visitors, Tyler, TX, makes for an excellent family-friendly vacation spot. It's also romantic. They call it the Rose Capital of America for producing, you guessed it, roses.
Being such a quaint destination also makes it an excellent place for short-term rentals. Yet with short-term rentals come unruly guests, and property damage costs. How can you cope with these liabilities and expenses?
The answer is vacation rental insurance coverage. Today we'll break it down by discussing:
- How much it costs
- What it covers
- What it doesn't cover
Short-term rental insurance is a must, so use this guide as a jumping-off point. Here's everything you need to know.
Vacation Rental Insurance Coverage Costs
Vacation property insurance is essential, even if you only rent out part of your home for part of the year. Likewise, dedicated rental properties will have insurance premiums that vary wildly.
Most plans seem to hover between a $1,000 and $5,000 premium, annually. If you already have an insurance provider, they may give you a cheaper add-on plan. So, for less than $100 a month, you get basic vacation rental coverage.
Factors that will affect the cost of your short-term rental insurance include:
- How much coverage you need
- Extended coverage
- Coverage for personal property
- Frequency of rentals
- Property type
It's impossible to give you an exact number that applies to your situation. Grab a quote from your preferred provider, then then adapt your rental pricing strategies accordingly.
What Does Vacation Property Insurance Cover?
Again, vacation rental insurance coverage will depend on the package you choose. Bare-bones, skeletonized plans are naturally going to give you very limited coverage. However, generally speaking, you can expect to cash in on your insurance policy for the following:
- Property damage from renters
- Liabilities such as guest injuries
- Income loss from covered event types
- Theft and burglary damage
- Personal property damage on the premises
- Legal fee coverage
Of course, you should read through your insurance agreement in depth. There will usually be a clear-cut list of what is covered and what isn't.
If you have any doubts, talk to a customer service agent for answers to be 100% sure. Insurance policies can get complex, especially when you're renting out your own home.
What Does Vacation Property Insurance Not Cover?
Not all investment property costs fall under the responsibility of the insurance company. Make a claim for anything you believe deserves compensation. Normally, however, providers won't cash you out for:
- Everyday wear and tear
- High-value item damage
- Infestations of pests
- Acts of God like flooding
- Business-related activities on the premises
To be fair, these are things insurance providers usually don't cover for other insurance types like buildings and cars. Don't hesitate to call your provider and get confirmation if you aren't sure about something.
Rent with PMI
Vacation rental insurance coverage typically will cost you between $1,000 and $5,000. It'll cover the expected things, like liabilities and property damage. However, you're usually on your own when it comes to pest infestations and natural disasters.
PMI Tyler in Texas will help you maximize ROI on short-term rentals. Our testimonials speak for us: we've got five-star ratings practically across the board. See how we can serve you by getting a free rental analysis.
