Summer is finally here, which means vacationers will be here too.
Photo by Kathi Williams
Ready for Summer
Lifeguard chair on East Beach, St. Simons Island, Georgia
Now is the time to prepare and take the steps to reduce financial risk. Vacation rental property insurance will help safeguard your investment and give yourself peace of mind during the busy season on the Golden Isles.
Owning a vacation rental property or a second home is a luxury; it’s an extension of the American dream and an aspiration for many families. With it, comes additional responsibilities: upkeep, liability concerns, and all of the “what ifs.” What if a renter gets injured on your property and sues you? What if a renter accidentally damages your property? What if your property is unoccupied when damage occurs? In all of these scenarios, the liability could fall on you, but a reliable insurance policy with Morris & Templeton Insurance will allow you to rest easy when guests come to town.
Renting out your vacation home is much like running a business. Many say it’s risky business, but it doesn’t have to be. If you rent out your property as a short term rental in exchange for money, it is considered business activity (regardless of how much you earn) and is most likely not covered by your homeowners insurance policy.
So what kind of policy should you get? There are a lot of factors to consider. Do you rent out your vacation home every once in a while? If so, you might be able to get an endorsement on your existing homeowners insurance policy. Simply put, that means you can get an addition made to your current policy to change certain terms or the scope of the policy. If you rent on a more regular basis, then you should consider a stand-alone commercial or business liability policy. This would cover several different incidents, such as: protection of the structure itself, personal liability if a guest gets injured, the contents inside your home (in the event of damage, theft, or a fire), and lost income (if your property sustains significant damage to where you cannot rent it out for a period of time).
Whether you rent occasionally or on a regular basis, the cost of your homeowners insurance will likely increase, as you are increasing the amount of coverage you have. The cost depends on several factors. They consider your deductible amount, the replacement cost of your home, location, amenities, and, of course, the amount of coverage you want. Generally speaking, vacation rental insurance policies are slightly more expensive than primary homeowners insurance policies. Why is this? Mostly because your home is vacant more frequently and the likelihood of filing a claim is much higher.
As the Insurance Information Institute says, “renting your second home entails additional, more complex risks, it’s a good idea to consult with your insurance professional.” If you own a second home and plan to rent it out this summer, give Morris and Templeton Insurance a call and they will handle all of those complex risks. You can reach an agent at 912.355.4549 or visit their website at morristempleton.com.
