Understanding Short-Term Rental Damage: Accidental vs. Intentional

As a property manager, you most likely encounter property damage in your short-term rentals regularly. The determination of whether damage is intentional or accidental is a critical aspect of the short-term rental insurance claims process. Knowing which type of damage has occurred can have significant implications. The insurance company will conduct a thorough and impartial investigation to determine which category your damage falls under, but you should also have a good general knowledge of what’s what.

What is Considered Accidental Damage in a Short-Term Rental?

These are unexpected mishaps, like a spilled glass of red wine on the carpet or a broken vase due to a guest’s oversight. It happens, and it’s not intentional.

Accidental damage typically refers to unexpected and unintentional harm or destruction that occurs suddenly and is not caused by a deliberate or purposeful act. It is damage that happens as a result of an unforeseen event or accident, which is not premeditated or planned by the individual or entity responsible for the property or item.

In the context of insurance, accidental damage is a term commonly used to describe the coverage provided for such unexpected and unintended damage. Be sure to know your short-term rental insurance coverage limitations because they may exclude natural disasters or other weather-related incidents in the policy.

Examples of Accidental Damage in a Vacation Rental

• Pets: Damage caused by pets, like a dog knocking over a valuable item, is generally considered accidental.
• Water Damage from Burst Pipes: If a water pipe bursts unexpectedly due to wear and tear, freezing temperatures, or other unforeseen circumstances, the resulting water damage is generally considered accidental.
• Accidental Fires: Fires caused by accidents like a cooking mishap, electrical short circuit, or a fallen candle are typically categorized as accidental damage.
• Falling Objects: Damage resulting from objects falling due to accidents, such as a tree limb falling on a roof, is accidental.
• Vehicle Accidents: Damage to a home from a car accident is usually classified as accidental if it was genuinely unintentional, such as when a driver loses control of their vehicle.

What is Considered Intentional Damage in a Short-term Rental?

On the other hand, intentional damage, also known as willful damage, refers to harm, destruction, or injury that is deliberately and purposefully caused by an individual or entity. In this context, the damage is the result of a conscious and intentional act, where the responsible party knowingly and willfully takes actions to cause harm to property, possessions, or assets. (pets, parties, smoking, stupidity)

Examples of Intentional Damage in a Vacation Rental

• Vandalism: Deliberate acts of vandalism, such as breaking windows, spray-painting graffiti, or damaging property with malicious intent, are considered intentional damage.
• Arson: Setting fire to a property or its contents with the intent to cause damage or collect insurance proceeds is a clear example of intentional damage.
• Theft-related Damage: Damage that occurs during a burglary, such as forced entry or destruction of property to gain access, is often seen as intentional.
• Alterations with Intent: Making unauthorized structural changes or renovations to a property with the knowledge that it will cause damage can be considered intentional damage. For example, knocking down walls without proper planning or permits.

Understanding Your Insurance Policy is Important: Remove the Guesswork

It’s important to note that the specific terms and conditions of an insurance policy will vary, and the determination of whether damage is intentional or accidental can sometimes be a matter of interpretation. Know your policy inside and out. Your policy may also exclude natural disasters or other weather-related damage because the homeowner’s policy typically covers these areas. Insurers and adjusters will investigate each short-term rental claim to establish the cause of the damage and whether it falls under the coverage provided by the policy.

Safely’s Protection Policy Covers You for Intentional and Unintentional Damage

The good news? A Safely Protection Policy has got you covered for both! We understand that accidents and unfortunate incidents can occur. That’s why our coverage is designed to protect your short-term rental property, no matter the cause. With Safely, you can manage and host with confidence, knowing you’re safeguarded against both accidental and intentional damage. If you manage ten or more properties, get a quote from Safely today!