Potential Risks With Short Term Rentals That Insurance May Cover
Many property owners provide short-term rentals. Some owners rent out their homes for extra cash, while others do it as their main business. Some people rent single rooms, while others rent out entire homes. Either scenario creates risks for the property owner. Below are some of the risks.
Accidental fires are possible with short-term tenants. For example:
- A tenant might trigger a fire outbreak if unfamiliar with a heating system, such as a fireplace.
- A tenant might trigger a fire if they use unfamiliar electrical appliances in your home
- A tenant might cook or light fires in unauthorized areas and trigger a fire outbreak.
Such fires can cause serious damage or even burn down the entire property. Short-term insurance may help you repair or rebuild the property.
Plumbing disasters occur in different ways. Here are some examples:
- A water pipe freezes and bursts because a tenant forgot to turn on the heat while leaving the house.
- A tenant flushes the wrong things down the drain, blocks the drain, and triggers drain backup.
- A tenant accidentally leaves the tap running while out of the house.
Water damage, mold growth, effluent contamination, and electrical damage are all possible effects of plumbing disasters.
Most tenants are law-abiding and leave everything intact after their tenancy ends. However, a few dishonest people also rent properties. Such people might help themselves to some of your properties when they leave. Small-but-valuable items are common targets of such people. Short-term rental insurance may help you replace such items.
Accidental Property Breakage
Fragile items are vulnerable to damage in rental properties just as they are in other homes. For example, a tenant might accidentally:
- Drop and crack your wine glasses
- Break your windows
- Break your TV screen
All sorts of damage are possible, and such breakages usually require expensive replacement.
Guests can sue you for damages if they suffer accidental injuries on your property. For example:
- A guest might slip and fall on torn carpet
- Storage boxes might fall on a guest
- Your pet might bite a guest
Such injuries can cause thousands of dollars in medical damages, lost wages, and legal defense, among other damages.
Different forms of property insurance are useful for different circumstances. Appropriate insurance could save you thousands of dollars if you experience a covered risk. Review your needs and buy appropriate insurance. An experienced insurance agent can help you with the review.