One of the best things about Florida is all the great things there are to do here. Fabulous beaches, famous theme parks, and great golfing are just a few reasons why it’s a wonderful place to live. These same features also draw a lot of vacation travelers, and they all need some place to stay. For some, it’s a wise business decision to invest in a house or condo that can be rented out as a vacation rental. Other people might have an apartment in their home or garage that can be rented out to those visiting the Sunshine State. Before starting any business venture, it’s always a good idea to consider all the factors, and home or condo insurance is definitely one of the things you need to think about.
Most people already know that insurance is important in a rental property. With such a large investment, it’s important to have protection from burglary, fire, weather damage, liability and other risks. But what many people don’t know is a simple homeowners policy doesn’t cover a vacation home.
There’s also a difference between renting out a home with a long-term lease, and a short-term vacation rental. A landlord policy will cover long-term rentals, which typically cost a bit more than a homeowners policy. A vacation rental is a little different, because everything that happens under that roof is considered to be business-related, which means it requires a commercial insurance policy.
The internet makes marketing a vacation rental really easy, and websites such as VRBO and Airbnb, in an effort to provide convenience to property owners, do offer some insurance policies for owners. But some property owners have discovered that this bare-bones insurance often doesn’t cover everything it should. Especially when the property is in a location prone to extreme weather, such as Florida, it’s important to make sure you are completely covered and to expect the unexpected. Check out our article Three Tricks for Keeping Your Home Insurance Premium Low.
If you’re considering renting out a vacation property, contact us. We will work with you to make sure you have the insurance coverage you need so you can enjoy the perks of your investment without worry.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.