Are you on the fence about purchasing vacation rental insurance coverage for your Kissimmee, FL, property?
First thing first, you've made a smart investment since Kissimmee is a tourist hotspot, receiving over five million visitors every year. A good number of these visitors prefer to stay in short-term rental properties for years, giving property owners a steady source of income.
However, there are several risks associated with owning a vacation rental property. You could get sued if a guest is injured on the property, for example. Buying insurance is an effective risk management strategy.
Read on to learn more about how this coverage will benefit you.
1. Business Interruption Income
Imagine a scenario where you cannot rent out your property to travelers. You'll not be earning any income, which can put you in a difficult financial position if you have property expenses you must keep paying, such as a mortgage.
The COVID-19 pandemic is a stark reminder of how an unforeseen event can put your short-term rental out of business. With travel restrictions in place, vacation rental property owners had no choice but to wait.
With business interruption insurance, you won't worry about losing your vacation rental income. Whether the interruption has been occasioned by a pandemic, a storm, or another disaster, as long as it's covered by your insurance coverage, you'll receive compensation to replace the lost income.
2. Property Damage
Bad weather is the primary cause of vacation property damage, but there's another factor many owners overlook: the vacation guests.
You can rent out your short-term rental to a terrible guest who goes on a rampage, causing a lot of damage to your appliances, furniture, and other items. The worst part is that by the time you discover the damage, the guest would have long checked out.
Investing in vacation guest screening is one way to prevent bad renters from finding their way into your property, but it's not foolproof. You need a better way to protect yourself from the financial losses that ensue from property damage. Vacation rental insurance provides this protection.
3. Liability Protection
You strive to keep your short-term rental free of hazards that can cause injuries to guests. However, there's no guarantee that an accident won't happen.
Perhaps a faulty staircase that you failed to repair will be the reason a guest slips and breaks a bone. Or maybe they'll slip and wet floors that your cleaners failed to dry properly.
Having guests sign liability waivers helps, but you'll have a case to answer if an accident happens because of your negligence.
If the renter successfully argues their case in court, you will be required to compensate them for their medical costs and other expenses. Thankfully, your vacation rental insurance will step in and compensate the victim.
You Need Vacation Rental Insurance Coverage
Purchasing vacation rental insurance coverage might seem like an unnecessary expense item to add to your already long list of property expenses. However, it's worth it.
If you need help managing your Kissimmee short-term rental, PMI Trust has your back. We leverage PMI's cutting-edge tools and property management support to deliver the best services to vacation property owners in Kissimmee.
Contact us to learn more about our service.
