3 Severe Risks That Could Put Your Vacation Rental Business in Peril

While your vacation rental property may not be your only source of income, it is a business venture. You need the correct type and the right amount of commercial vacation rental property insurance to protect your investment and mitigate your legal liability risk.

Severe Risks Do Exist

Renting your condo, townhome, cabin, single-family home or other property comes with more risk than some vacation property owners realize. If those risks are not adequately addressed, you could find yourself having to pay for expensive repairs or responsible for large legal liabilities in court.

In this article, we're examining the various types of risks property owners could face and how commercial vacation rental property insurance can keep you covered in the face of disaster. 

#1. Stolen or Damaged Property 

Renting your vacation property always carries a risk. Most people who use short-term rental properties are responsible and careful; however, there are also many people who do not respect the property as much and let completely loose while on vacation. For example, in 2015, an Airbnb host in San Francisco lost $35,000 in stolen property from a locked closet and office. One of your best defenses against personal losses from damaged, destroyed or stolen property is adequate commercial vacation rental coverage to pay for repairing or replacing your assets.

#2. Vacancies Between Renters

Another type of risk vacation property owners’ face is the chance that a loss will occur while the property is in-between renters. For example, if your cabin renters’ stay ends on Sunday and the property isn’t occupied until your next renters arrive the following Friday, damage could go unnoticed for several days. Damage due to undetected water leaks are among the most common causes of claims. In the case of an issue like a broken water pipe, any delay in noticing and addressing the problem could cause the cost of repairing it to escalate. Commercial insurance policies designed to protect property owners will provide the necessary coverage to give you peace of mind.

#3. Guest Injuries (and Fatalities)

Finally, no matter how careful you are about implementing and maintaining safety precautions for your property, there is always the risk that a renter will become injured. Injuries and even deaths can occur that require medical attention and related expenses, which may result in a lawsuit for damages. Commercial vacation rental property coverage protects property owners from these types of losses, and it also protects them in the event a renter decides to file a legal lawsuit and sue for damages.

Commercial Vacation Rental Property Coverage is Your Best Line of Defense

When you buy commercial vacation rental property coverage, you can rest easy knowing your property is protected from damage or theft, and that you have liability protection if someone sues you for damages related to your vacation property.

To learn more about protecting your short-term rental business through CBIZ Vacation Rental Insurance, request a free quote today!

This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

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