Short-Term Cover
Short-term property insurance is ideal for people with holiday homes as it can cover many of the luxuries added to these types of properties, such as televisions, fridges, videogame consoles and all of the furniture and necessary equipment.
If you have a fully furnished property, it is important that the entire content is insured for damage from holiday renters. It is impossible to guarantee your renter will be one of the trustworthy ones, so it is essential to ensure everything from crockery to the building itself is protected with the right insurance policy.
If you choose the right holiday home insurance, you are covered from theft as long as the building has been appropriately safeguarded, including the installation of lock systems, security doors and windows.
Covering Your Earnings
If holidaymakers have booked your property but an accident occurs, such as a fire or natural disaster, which damages your property to the point of making it uninhabitable, the right insurance can help protect your loss of income. A good policy would cover the loss of the rent as long as the damage is also insured through the policy. Damages, other than natural disasters, can include riots or civil commotion, damage from previous temporary tenants or malicious acts of vandalism.
Personal Injury
If anything was to happen on your property that caused injury to someone and they sought damages from you, your insurance policy may offer you legal liability to a set amount. The standard would be about $5 million, but some of the better insurers offer up to $20 million, which is a fairer amount, especially if a case goes to court. If you are the recipient of a tax audit, some insurers even offer professional fees of up to $1000.
If you own a holiday property, having holiday home insurance is essential, even if you use a property manager. Most basic home insurance does not cover many of the items required for holiday rental and you should not be fooled into thinking that a basic policy will do for now. Standard home insurance policies are not prepared with holiday letting in mind and there won’t cover anything that is considered a deliberate act.
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