Chattanooga, one of Tennessee's largest cities, receives about 15 million visitors every year. There are plenty of fun things to do in Scenic City, and when also is done, many of these guests retire to short-term rentals like yours to call it a day.
Indeed, owning a family-friendly short-term rental here has great potential to be a lucrative investment. However, every investment carries a risk, and short-term rentals are no exception.
One of the best steps you can take to protect your investment is to get vacation rental insurance coverage. This article breaks down the details of this insurance policy, and how to make the most of it.
Let's get into the basics.
What Does Short-Term Rental Insurance Cover?
To best understand how this type of insurance works, you need to be aware of the risks your property faces.
First, like any ordinary residential property, the risk of property damage from adverse weather events is there. It's only the level of risk that varies.
Second, unlike ordinary homes, short-term rentals face an increased risk of damage by the guests. You have new people checking in and out of your property, and it's unfathomable that some of those people can cause malicious damage to your property. Even unintentional damage to household items like furniture or electrical appliances can set you back thousands of dollars.
Third, there is liability risk. If a guest or a contractor is injured on your property because of your negligence, you could be held responsible for their medical expenses and other losses.
Fourth, loss of income. The COVID-19 pandemic is behind us, but you must remember how travel restrictions led to unprecedented financial losses for vacation rental owners.
A vacation rental insurance policy provides coverage for all these risks.
Purchasing the Best Policy in Chattanooga
Now that you know the benefits of vacation rental insurance, you're ready to get coverage. Not so fast!
An insurance policy is only as good as the provider. Some insurance companies are known to frustrate clients when they're pursuing a claim.
As such, you must do your research and find a reputable vacation home insurance provider. But first, understand your needs. How much coverage do you need for each risk item?
This way, you'll be able to assess the various vacation rental insurance policies and find one that best addresses those needs. It's also possible for an insurance company to develop a custom policy to better cover your risks.
Once you've zeroed in on a policy, be sure to read through the lines and ensure you understand everything. Insurance policy underwriters have a sneaky reputation for sneaking clauses into policy documents, knowing very well that consumers barely scrutinize them.
Get Adequate Vacation Rental Insurance Coverage
Having vacation rental insurance coverage is a smart move. It protects you from unforeseen financial losses that could otherwise put you out of business.
Do you know what else is a smart move? Hiring a short-term rental management company to handle everything from bookings to cleaning.
In Chattanooga, PMI Scenic City has built a solid reputation for providing the best short-term rental management services. Our company is part of a national property management franchise that has been in the game for over two decades.
Contact us to learn more about our services.
