According to WOBM, the Jersey Shore hosted more than 114,000 visitors in 2022 alone. Of these visitors, they brought $49.1B to the Garden State.
If you have a rental property you're looking to host, then you need to understand the importance of vacation rental insurance coverage. This specific insurance protects you while others are in your home, covering pet damage (when applicable), boat damage, vehicle damage, and more.
All hosts should consider vacation home coverage in earnest, protecting their investments. Here's what you need to know.
Do You Need Vacation Rental Protection?
When researching summer vacation rental tips, you've probably asked yourself if rental property insurance is required. Although not required as a host, it's highly advisable as it protects you - and your assets.
For example, any time you rent a property for money, it's treated as a business activity. This means that your existing homeowner's insurance policy won't pay should your home incur any damage while being rented.
Some people opt to purchase personal umbrella policies for additional protection. Unfortunately, personal umbrella policies or personal liability policies don't cover vacation rentals either, as they're business-related. You would need a separate umbrella policy just for your rental property.
You also need to consider your property type. Is your Avalon vacation rental inside a building or other type of community?
If so, you need to familiarize yourself with what is and isn't covered. Odds are only your building's exterior and communal grounds are protected, which means you need a private plan for short-term rental insurance.
Types of Vacation Rental Insurance
There are several types of short-term rental insurance for hosts in Avalon, NJ.
Some of these plans include:
- Host Damage Protection
- Liability Insurance
- Insurance for Loss of Rental Income
Before choosing a plan, it's important to understand what each plan entails.
Host Damage Protection
You'll want this insurance for protection against guests who damage your property. The most common time to use this type of insurance is when guests claim no damage was done while renting your home. You can also use Host Damage Protection for claims without involving your guests.
Liability Insurance
According to On The Map Lawyer Marketing, the Personal Injury industry was worth $53.1B in 2022. As such, you need to protect yourself and your investment from claims or lawsuits. This may include accidents or injuries guests sustain on your Avalon, NJ rental home, making vacation rental insurance coverage an absolute must.
Insurance for Loss of Rental Income
Should your vacation rental become uninhabitable due to damages covered by insurance, this type of policy compensates you while your home is repaired or replaced. When selecting this type of insurance, you'll have an easier time meeting financial obligations.
You can also purchase extraordinary events coverage for natural disasters and an umbrella policy for additional protection.
Vacation Rental Insurance Coverage
As a host, the decision to protect your property is one you can't overlook. Guests can make claims or file suit and your Avalon, NJ vacation property can face uncertain damage. However, vacation rental insurance coverage works to protect you and your assets when renting your home out to guests.
Even with insurance, it's important to give your rental an added layer of protection, and property management ensures this. Contact Property Management PMI Saltwater to see how we can help.
