Renting out your Hilton Head, SC, home can be a great way to earn extra income or become a profitable business. Unfortunately, though, one unfortunate event may turn it into a nightmare.
In 2022, a fire ripped through a Hilton Head vacation home, tragically leaving one occupant dead and another in the hospital. If this had been your vacation rental, would you have had the right insurance to cover your losses?
Let's take a quick look at what you need to know about vacation rental insurance coverage so that you are not left in the lurch if the worst happens.
Vacation Rental Insurance Coverage: The Basics
Whether you are renting out your home full-time or just occasionally, don't be fooled into thinking that your homeowner's insurance will cover you. Thinking your homeowners' insurance covers you for short-term rentals is a classic vacation rental mistake. Instead, you will need specific insurance for vacation homes or a host liability policy, which should include the following protections.
Property Protection
This part of rental property insurance covers the structure of your home, and some policies may cover the things in it. While most vacationers will not intentionally damage your home, accidents can happen. Property coverage options protect you and your possessions and could help you get your business back on its feet.
If your vacation rental is an apartment or condo, you will also need to check what is covered by other insurance in place on the entire building.
Liability Coverage
Insurance for vacation homes also needs to protect you from being sued personally and having to pay out of pocket if someone gets injured or dies at your property. If you do get sued, liability coverage can cover the legal fees and potentially the damages you may have to pay to the injured party or the family of the deceased person.
Loss of Income
While vacation rental insurance policies won't pay you if nobody books to stay in your home, they can cover you in other circumstances. For example, if you had to cancel bookings due to damage to the property, you may be able to claim for loss of income from your vacation rental protection.
Specific Insurances
It's usually possible to tailor vacation rental insurance policies to meet specific needs in your area. For example, Hilton Head lies in a hurricane zone, so it may be wise to take out specific coverage that protects your rental business if one makes landfall nearby.
Don't Forget a Thing With PMI Sea Island
At PMI Sea Island, we understand that running a vacation rental involves a lot. But if you hire us to manage your property, we will take care of everything. From marketing your rental to ensuring you have the right vacation rental insurance coverage, you can have peace of mind that everything is taken care of.
We can also help you maximize your profit and create a vacation experience that will keep people coming back year after year. Learn more about our vacation rental management services, and get in touch with us today!
