Have you been thinking about renting out your second home or vacation property here in Indiana? Instead of letting your home go to waste while you’re not in it, renting out short-term may sound like a great idea. But in reality, renting out your home short-term is a really big deal, and depending on your current home insurance coverage, it could be a big liability as well.
If you decide to rent out your home near Fishers, IN with the help of popular home-sharing companies like Airbnb or VRBO.com, don’t be tempted by their easy-to-use platform. Before you put your house up for rent, make sure you check with your independent insurance agent at Butler Insurance to make sure you have the right level of protection first.
What Are the Pros and Cons of Renting Short-Term?
Over the last several years, the popularity of short-term rentals has grown across the US and the world. Instead of paying for a hotel room in each new city you visit, you can simply rent out a room or even an entire home with the help of apps like Airbnb. And while this may seem like an easy solution for everyone involved, there are many risks to the homeowners in this situation.
Insurance Considerations
You may find that your home insurance policy does offer some form of coverage for certain short-term rentals. But in most cases, you’ll need to rely on the primary insurance coverage offered by the rental company you work with. While this does offer an extra layer of protection, this extended primary insurance coverage is still subject to certain limitations, conditions, and exclusions.
Cost Complications
Listing your home for rent with these different sites is also very affordable, with the companies taking out a small fee for each successful rental. But one big problem that homeowners should be aware of is the fact that depending on where you live; it may actually be illegal to sublet in this way. That’s right, certain city ordinances and homeowner’s associations restrict subletting or short-term rentals, so you could end up paying big fines if you break the rules.
Liability Claims
Even if you trust the insurance coverage provided by your rental company, it is important to remember that you never really know what it protects against until a claim is filed. If a renter has a slip and fall accident on your property and decides to sue you for negligence, you could end up paying out-of-pocket to settle the claim. Additionally, if you haven’t invested in a special coverage like landlords’ insurance but are renting out your home on a regular basis, you could also be found liable for any injuries if a renter can prove negligence.
Prepare for Regular Maintenance
As a homeowner, it’s important to keep up with regular maintenance on your home. But as you become a landlord, you’ll need to step-up your home care maintenance routine. As each renter comes into your property, there is a greater chance that you could be investing in repairs. So it’s a good idea to either set aside lots of time for DIY maintenance or to hire a professional to keep an eye on the property for you.
Get Proper Insurance Coverage
Remember to speak with your insurance agent before handing over the keys to your home. Regular home insurance policies rarely cover vacation rentals, so you’ll likely need to invest in additional coverage. Want to learn more about the benefits of total insurance protection? Contact the team at Butler Insurance for more information and be sure to request a quote online today.
