How Short-Term Rental Insurance Protects You From Guest Misconduct

Guest misconduct is a bigger issue than you might realize. It’s the underlying cause of many of the costs that affect your short-term rental business’ success, as well as the motivating factor for maintaining short-term rental insurance. 

Before you review your coverage, it can help to know how insurance offers protection against guest misconduct.

Property Damage

Perhaps the most common result of guest misconduct involves the physical damage of your short-term rental property. Every guest’s stay will result in some minor wear and tear damage. This is an anticipated part of managing short-term rental property. But severe damage can leave you with unexpected costs and repairs.

In these cases, your insurance coverage may help you repair extensive damage and restore the condition of your rental property. Carefully reading and frequently updating your Safely insurance policy gives you the opportunity to ensure your property is fully covered before guest damage occurs.

Common types of extensive damage your policy should cover include:

• Gouges or holes in drywall
• Broken or cracked windows and mirrors
• Carpet stains and burns
• Appliance damage

Beyond these specific categories, you might feel concerned that guests could cause other types of damage as well. Bring those specific concerns to the attention of your Safely representative. They can help you update your coverage or add supplemental coverage to meet your unique needs.

Liability Claims and On-Site Injuries

When you’re researching how short-term rental insurance protects you from guest misconduct, you’ll find that there are less obvious costs worth guarding against. For example, when a guest improperly uses equipment in your rental, serious injuries may be more likely to occur. Your liability coverage can provide the financial resources to hire an attorney and cover injuries in these situations.

Alternatively, one guest might cause injuries to another guest while on your rental property. In that case, you could be liable for the injured party’s damages. Whether injuries result from a practical joke, a physical altercation, or a mere accident, your liability coverage can spare you from costly legal repercussions.

It’s important to note that you will choose the limit on your liability coverage. If a claim exceeds your coverage limit, your business will have to pay the difference. 

Make sure you obtain sufficient coverage to reduce the chances that this situation will occur. You may never need to use your liability coverage, but having enough coverage will ensure you protect your business from these rare incidents.

Property Theft

One of the hidden benefits of short-term rental insurance is that it can protect you from theft on your property. When preparing real estate for short-term rentals, you’ll want to provide attractive amenities to help your property stand out. You might install energy-efficient appliances, home entertainment equipment, or gaming consoles.

While more state-of-the-art amenities result in a better guest experience, some guests might want to take those experiences home with them. You can use security equipment to protect the amenities in your rentals, but clever thieves may still figure out a way to steal from you. Even the loss of towels and other minor items can add up when your property suffers frequent theft.

Your short-term rental insurance can cover the loss of those items. To ensure your policy covers everything on your property, update your coverage anytime you add new equipment or features to your rentals. 

If your Safely insurance policy doesn’t mention your new hot tub or outdoor kitchen, a claim to cover the loss of those features may not be successful. Contact Safely to learn how you can effectively protect your property today.

Squatters and Overstaying Guests

You’ve probably heard of people squatting in vacant homes once they enter the real estate market, but squatting is also common in vacation rentals. For your short-term rental property, it’s more likely that a registered guest will simply stay beyond their check-out date and refuse to pay. They might also damage the property in the process of keeping you from entering.

There are a few ways to spot potential squatters. For example, Safely’s guest screening services can help you weed through undesirable guests or those with the potential to cause problems. 

Here are a few more ways to reduce the chances of letting a squatter into your rentals:

• Require photo ID
• Keep up with reviews from other short-term rental property owners
• Use a short-term rental contract

You may wonder how short-term rental insurance protects you from guest misconduct when that misconduct involves squatting.

Low Bookings

Short-term rental insurance can also keep you from losing future guests, which is an often overlooked consequence of guest misconduct. Without the protections for short-term rentals that your policy will offer, you may not be able to repair damage or replace stolen items. This can result in delays as you divert your financial resources to cover the cost of repairs.

Depending on the severity of the property damage, hiring contractors to repair your property without a claim payout may take longer. This leaves one or more of your rentals off the market for an extended period of time. 

As a result, your potential customers might turn toward competing short-term rental properties. As your competitors gain recognition and popularity, your business can lose visibility.

Additionally, a lack of insurance coverage leaves you unable to replace stolen items. Your rentals will have fewer amenities, and returning renters may feel disappointed by the lack of comforts your property provides. New guests might feel underwhelmed when you offer fewer extras to make their stays more relaxing and comforting.

Keeping up with short-term rental insurance helps you conduct more immediate repairs and replacements. You can get each rental up and running sooner, and your business will remain an active and competitive brand on the market.

Learn How Short-Term Rental Insurance Protects You From Guest Misconduct With Safely

Safely offers insurance coverage designed to meet the specific needs of short-term rental businesses. We also offer guest screening services to help you mitigate your property damage risks. Whether you need an entirely new policy or an update to your existing coverage, contact us today to get started!