Insurance for short term rentals: which coverage do I need?
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Which coverage do I need?
In the day-to-day of tourist rentals, owners of vacation apartments face a multitude of challenges. Damages to one's own holiday accommodation are a nightmare and unfortunately occur far too often. When a guest decorates your brand-new couch with a glass of red wine and denies any responsibility, what can be done?
Such incidents often lead to lengthy discussions and additional costs. But do such disputes with guests really have to happen, and what to do when water damage disrupts your rental plans?
This article sheds light on the most common challenges of damages that vacation rental owners face and shows how you can effectively protect yourself against damages and avoid lengthy disputes. Discover how insurance can help you optimally protect your vacation property and make the rental routine more carefree.
Challenges
Discussions with Guests & Booking Platforms
Tourist damages are a frequent and costly problem. A glass of wine too much in the evening, and suddenly a chair leg is missing, or a pot scratches the ceramic hob. But why is it that booking platforms rarely offer reimbursement for the incurred costs, and discussions with guests usually end without clear solutions?
The reason lies in the burden of proof being on the landlord. Although damages caused by guests could theoretically be settled through their liability insurance, the landlord must clearly prove that the guest is responsible for the damage. Without this clear proof, it is very difficult to hold the guest accountable, even if there are often no doubts. And that is frustrating!
Conventional Household Insurance Is Not Sufficient
Insurance Coverages That Can Help
To protect against such risks, landlords should consider insurances specifically designed for tourist rentals. But what does such insurance ideally look like?
Household Insurance for Commercial Rentals
In tourist rentals, it is crucial that your holiday accommodation and personal inventory are optimally protected both during guests' stays and during vacancies. Damages from lightning, fire, or storm are classic risks that should be covered. But burglary, theft, and glass damages should not be forgotten about, especially when the apartment is empty.
Imagine coming back after a quiet summer break to find a broken window. Or during a heavy storm, a falling branch damages your roof. Such situations are stressful and can cause significant costs.
It is important that your insurance also covers damages that occur during vacancy periods. The risk of break-ins and vandalism is higher when no one is present. Likewise, damages from lightning strikes, fire, or storm should be fully covered to comprehensively protect your holiday accommodation. Good insurance ensures that you are financially secure in such cases and that you can quickly return to normality.
Insurance Against Guest Damages
Accidents happen, and they shouldn't dampen your mood or that of your guests. Especially for damages caused by guests, you should not be financially burdened. Therefore, it is important to check with your insurance whether guest damages are covered.
Remember, you have the burden of proof. It can be very frustrating if a guest does not acknowledge a damage and booking platforms do not offer a satisfactory solution. Such lengthy discussions with guests not only strain your nerves but also affect the guest experience and potentially your reviews. And that doesn't have to be!
With the right insurance on your side, you can ensure that such incidents are handled quickly and easily, preferably without involving the guests at all. This way, your nerves remain intact, and your guests can fully enjoy their stay.
Business Interruption Insurance
If the damage is extensive, it might be that you cannot rent out your holiday accommodation for a while. In this case, it is sensible to look for insurance that not only protects your property but also your income.
Such a scenario is best illustrated by looking again at the case of water damage. In this case, extensive clean-up and drying work are usually necessary. Consequently, you are not only financially burdened by the restoration work but also by the loss of rental income during this period! The scenarios for such damages are varied: whether it’s a falling branch damaging the roof or water damage – in all these cases, the motto is: Better safe than sorry! Comprehensive insurance can protect you from the financial consequences of such events.
Support in Case of Damage
When choosing your insurance, make sure that the support from the insurance does not stop at the financial claim. Insurance providers with a good network of craftsmen can save a lot of time and stress when it comes to quickly and efficiently repairing damage.
Especially if you are not on-site yourself, it is helpful if the insurance includes assistance services. This is a call centre or customer service centre provided by the insurance that takes care of the damage repair. This assistance centre organises the repair work and craftsmen and is available for questions or concerns. Ideally, the assistance centre also supports communication with the insurer to make the process as smooth as possible. This support ensures that you only have to deal with the processing to a limited extent and saves you some grey hairs.
Is There Such Insurance?
Yes, there is!
After two years of intensive negotiations with assistance centres and insurance providers, keyone has developed the insurance product keyone care, which meets all the mentioned criteria. This comprehensive insurance package offers you the protection and support you need to effectively manage the risks of tourist rentals.
keyone care was specifically developed for tourist rentals and offers you all-round protection that secures your holiday accommodation both during vacancy,against damages by guests, and possible rental losses in case of major damages.
And the best part: With keyone care, you not only get financial security but also professional support in handling damages. Our service ensures that in case of damage, quick and efficient action is taken, and you receive active support. This way, income losses can be minimised, and your holiday accommodation can be rented out again quickly. Our competent partners guide you through the entire damage repair process and take care of the organisation and execution of repair works.
If you want to learn more about keyone care and how it can help you optimally protect your holiday apartment, follow the link below.
keyone care
Carefree renting: stay calm
in the face of damage
Would you like to rent out your property carefree and remain calm even in the event of damage? keyone care all-round protection offers your vacation accommodation comprehensive security during vacancies, in the event of damage caused by guests and against possible loss of rent in the event of major damage.
