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People may now travel and gain extra money in new ways thanks to short-term rentals. If you let visitors stay in your downtown condo or your cottage by the lake, you take on new risks that regular home insurance might not cover. That's when you should consider short-term rental insurance. This kind of insurance protects hosts from losing money when guests stay too long, damage their property, file liability claims, or have business interruptions that come out of nowhere.

As the market for short-term rentals grows, so does the need for landlord insurance that fits the unique needs of hosting. Property owners may protect their investment and maintain peace of mind by knowing what these insurance policies cover.

Airbnb and Other Platforms

Thanks to services like Airbnb, Vrbo, and Booking.com, hosts may now generate money in innovative ways. But each site has its own approach to keeping hosts safe. For example, Airbnb's AirCover package comes with Host Damage Protection and Host Liability Insurance. This could be a good backup plan, but it's not the same as having short-term rental insurance. Most platform protections have limits, exclusions, and claim thresholds, so owners don't get full coverage.

Vrbo and other sites offer their own types of host liability coverage, but these schemes only protect the site, not the individual hosts. You are always covered, no matter which booking site you use, if you have specialized short-term rental insurance. This includes direct bookings made outside apps developed by other companies.

Specific Policy Requirements

Some insurance companies offer short-term rental insurance policies, but most include basic coverage that rental operators need. At the very least, hosts should look for:

• Property coverage: Protection for the rental unit and its contents against accidental damage, fire, water damage, theft, and vandalism.

• Commercial liability: Since hosting is considered a business activity, liability coverage should apply to guest injuries, accidents on the property, or claims of negligence.
  
  
• Business income protection: If a covered event—such as a fire or major repair—makes the rental temporarily unusable, business income coverage can reimburse lost revenue during downtime.
  
  
• Home-sharing endorsements: Some insurance companies require an endorsement to be added to a standard homeowners or landlord policy, while others offer short-term rental policies on their own. It's essential to ensure the policy aligns with how often the property is rented and whether you live there.

Guest-Related Damages

Even the most respectful guests can accidentally damage property. Spilled wine on the carpet, broken furniture, missing items, and clogged plumbing are common issues for hosts. More serious incidents—such as intentional damage, unauthorized parties, or theft—may require filing an insurance claim. Comprehensive short-term rental insurance helps cover repairs or replacements while reducing out-of-pocket costs.

When guests get hurt, it's also essential to protect yourself from liability. You could have to pay a lot for medical care and legal fees if someone slips on icy steps or falls because the floor is loose. Insurance protects hosts from claims that could cost them a lot of money. This makes short-term rental businesses safer and more stable for everyone.

Protect Yourself and Your Property with Landlord Insurance

Are you looking for an excellent price on landlord insurance, including short-terms rentals? Contact our team today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

Renovations can revitalize a rental property in a number of ways, such as adding more square footage, remodeling a kitchen, or finishing a basement. However, a lot of property owners prioritize contractors, design decisions, and budgets over landlord insurance coverage. Because renovations can change a property's value and the risks it poses, your insurance policy may need to be adjusted to keep you safe.

Insurance During Renovations

Before starting any renovation project, speak with your insurance provider. Standard home insurance policies often cover minor updates, but large-scale projects—such as structural changes or additions—can create new risks.

For example, some insurers require extra coverage for renovations, sometimes known as a "renovation endorsement," because your home may be more susceptible to theft, fire, or unintentional damage during construction.

This option can guarantee that temporary living expenses are covered if the house becomes uninhabitable, protect materials stored on-site, and cover liability if a contractor or visitor is hurt.

Additionally, contractors need to have their own workers' compensation and liability insurance. Always confirm this before hiring, as any coverage gaps could result in financial responsibility for you.

Adjusting Coverage

Reevaluate your policy limits as renovations proceed to make sure they still accurately reflect the rising value of your house. For instance, upgrading with high-end materials or adding a new bathroom can increase the cost of replacement. You may be underinsured in the case of a loss if your coverage stays the same.

Additionally, you might need to include particular kinds of coverage, like:

• Builder's risk insurance: Provides coverage for material and structural damage during construction.
• When a house is vacant while renovations are being done, vacancy coverage guards against potential dangers.
• Extensions to personal property: Guarantees coverage for recently acquired fixtures or appliances.

Reviewing these options with your insurance provider before and during the project will help prevent unexpected gaps.

Post-Renovation Insurance Evaluation

Once renovations are complete, a final insurance evaluation is crucial. Inform your provider of the finished work so they can update your policy to reflect the home's new value and features. This ensures adequate protection against future losses and provides peace of mind.

It's also a good time to review deductibles, liability limits, and any discounts you may qualify for—such as improved fire safety due to updated wiring or the installation of a security system.

You can streamline the process and ensure accurate valuation by giving your insurer the renovation-related receipts, pictures, and permits.

Homeowners can safeguard their investment and peace of mind by being proactive with insurance both during and after renovations.

Protect Yourself with Landlord Insurance

Are you looking for an excellent price on landlord insurance? Contact our team today! As independent brokers, we will shop the market to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.

When managing rental properties, safeguarding investments is a top priority for landlords, and comprehensive landlord insurance is a pivotal tool in achieving this goal. This type of insurance provides an extensive safety net, offering all-risk coverage to protect against unforeseen damages and losses. It also covers legal liabilities, ensuring landlords can handle legal challenges or claims.

Moreover, comprehensive landlord insurance addresses potential tenant risks, protecting situations like tenant damage or eviction costs. Landowners can manage their properties with greater peace of mind and financial security by opting for a robust insurance policy.

All-Risk Coverage

All-risk coverage, sometimes called open-perils coverage, is the portion of a landlord insurance policy protecting against an array of potential risks or perils except those explicitly excluded in the policy. Unlike named-perils insurance, which only covers the risks specifically listed, all-risk coverage automatically safeguards against any loss or damage to property from events such as fire, theft, vandalism, or natural disasters.

This broad protection accommodates unexpected or uncommon threats, reducing the chances of coverage gaps. However, policyholders must carefully review the exclusions section since the policy might not cover standard items like wear and tear, war, or government actions.

Legal Liabilities

A landlord insurance policy protects property owners from financial burdens arising from legal claims or lawsuits. This coverage typically includes liability for bodily injury or damage on the rental property, such as an injury to a tenant or visitor from a slip and fall accident. It can cover legal defense costs, settlements, or judgments if the landlord is found liable.

Additionally, legal liability coverage may encompass claims related to wrongful eviction, invasion of privacy, or discrimination. With this coverage, landlords can mitigate the financial impact of legal disputes, ensuring that unexpected legal issues do not jeopardize their investment or economic stability. 

Protection Against Tenant Risks

Another component of comprehensive landlord insurance is protection against tenant risks. It shields property owners from financial losses related to tenant activities, including damage caused by tenant negligence or malicious acts, resulting in costly repairs or replacements. It may also cover loss of rental income if a property becomes uninhabitable due to tenant-induced damage.

Another aspect is coverage for the legal expenses of evicting a non-paying or problematic tenant, which can be lengthy and expensive. By safeguarding against tenant-related risks, landlords can maintain their financial stability and ensure that their property investment remains secure, even in the face of tenant-related challenges. 

We Can Help You Save on Landlord Insurance

Are you looking for the best price and coverage on rental property insurance? Contact our team today! As independent brokers, we will shop among competing insurance companies to find you the best deal on quality landlord insurance!

Call American Insuring Group today at (610) 775-3848 or contact us online to start saving.