I am sure that you have been wondering "What about homeowners insurance when it
comes to short-term rentals? Does homeowners insurance cover short-term
rentals? Is it not covered? How does all of that work with insurance? Is
it expensive? Is it cheap?" I'm going to be telling you all of it on this video
giving you step-by-step. Let's go.
Alright. In this video, we're going to be diving deep into 3 things. What is
homeowner's insurance? Does it cover short term rentals? I'm going to tell you
the secret ways to make sure that everything that you do is covered and
your property is covered and protected. And then we're going to talk about some
great ways to get better insurance on your properties on your short-term
rental properties. And I'm going to give you some great ways on how to get insurance
in other places that don't even have to do with your homeowners insurance. So,
number 1, what is homeowner's insurance and what does it cover? You need to know
this you need to understand this. So, I'm going to quickly explain this to you so
you get the best information. Homeowners insurance covers the property if there
is damage to the property. So, if the house burns down to the ground,
if there is some natural disaster that comes through and ruins the property;
your homeowners insurance is going to cover that. Additionally, if there's
smaller things that happen like maybe just a fire in the kitchen. That would be
covered. It also covers things like liability. So, if someone is hurt on your
property. So, they fall down or they slip, your homeowners insurance policy will
cover that. And so, many times when we're talking about short term rentals,
everyone wonders, "Is my homeowner's insurance covered in these situations
where I have these short term tenants? Where I have these vacationers?" If I put
my property on Airbnb, is my homeowner's insurance going to cover these things?""
And the answer is most likely yes. But not 100%. You really need to
call your insurance company and see what it covers. Most homeowners insurance
policies does cover short-term rentals if you get the right coverage. Now again,
Noelle is not an insurance agent. I don't have my licensing so I'm not going to
advise you on that. Please look up what it is for your particular policy. But in
most cases, this is covered, okay? Because it protects the property from any type
of damage and it doesn't necessarily matter how it was like who caused it. Now,
you do need to make sure that you have renters a landlord's policy. Because at
this point, whether it's a long-term tenant or a short term tenant, you are a
landlord and those are tenants. So, it doesn't matter. So, as long as you have
the required coverage for having tenants in your property then
you should be covered and you won't necessarily have any big issues. But I'm
going to teach you some things so that you don't end up with a big bill or end up
paying a lot of money out-of-pocket if someone happens to do something to your
property. This is so important and I'm going to give you some great tips on what
to do coming up. The number 2 thing that you need to know when it comes to
whether or not homeowners insurance will cover your short term rental, you need to
know what type of things that it covers. With short-term rentals, mostly what you
will have not... You know, not in all cases of course someone could totally burn the
house down to the ground. But that's not typically what happens. That's very rare,
obviously, an entire home burning down to the ground.
But of course, that can happen and usually that's covered. But let's talk
about what's covered that really happens most of the time that you really need to
worry about. So, with short-term rentals, of course, you
have people coming in and out. People are staying 1 night, 5 nights,10 nights,
whatever the case. They're not staying there usually for a year or 2 years
like in the situation with a long-term tenant. So, with a short term tenant, the
risk increases that people can steal things, okay? That's actually the number
one thing that actually happens. With short-term rentals, it's not necessarily
the house burning to the ground or them doing anything crazy. Now again, that
happens. We're going to talk about that but mostly what happens is theft. People
often steal things. They may steal things that you want. And then you don't want
them to steal. So, you want to make sure that you document what you have and your
property. And this is the best way to make sure that you are covered by your
insurance. It's by documenting what was in the property of value. So, of course,
we're not going to leave diamond rings and necklaces and all these
expensive things in our properties. But we have furniture, we have televisions, we
have microwaves. We have appliances that people might steal and that you would
want your insurance to cover if that happened. Additionally, you want to make
sure if someone is hurt in the property that that is covered. Those are the 2
major things that you really want to make sure is covered. Because the things
that we kind of worried about like them just trashing the property. I'm going to
talk about how you handle that. And how you get paid without ever
even having to call your homeowners insurance. So, let's talk about that.
And finally, when we're talking about whether or not homeowners insurance
covers your short-term rental. We got to talk about Airbnb. So, most of the time,
which are short-term rentals, if you've been watching my channel, you've been
kind of learning from me. And some others out there, you know that Airbnb is the
number one platform on the internet for the short-term rentals. Now again, we have
Home Away, we have Vacation Rental By Owner, we have Booking.com, we have
Turnkey. We have a ton of other web sites. And the great thing about it is most of
them have their own insurance policies for you, okay? You, the host. You the person
that put their property at risk by allowing other people to stay there. So,
these companies have what we call blanket policies where you can file a
claim with them and they will cover damages and then they kind of handle
that. So, you don't even have to call your insurance company in many cases to
handle some of the things that people might break or... You know, say for
example, they break all the dishes, okay? I'm going to Airbnb now. They totally could
go in and they could just be like I could just like take this stuff and just
start throwing and breaking these things in this Airbnb. And then what would the
homeowner do? Well of course, they could call the the police on me. Because again,
that is a crime. People cannot come to your property and just vandalize it. So,
we'll talk about vandalism and some of those type of things maybe in another
video. But let's just talk about straight-up accidents. These just all
crumble to the ground and break. So, what you would do with the Airbnb policy and
some of the others is you would make a claim. You would take pictures of what
happened. How many cups you used to have, how many you have now and then they
would charge those to the guests, okay? They have their credit card number on
file and usually they may even have a security deposit of a couple 100
bucks. I've been doing the the rental thing for a while now, over a
year. I haven't had anything major happen. I have lots of friends that do Airbnb.
None of them that had anything major happened. But we have had a few mishaps
with things getting broken, towels getting damaged. Televisions being stolen.
A few smaller items. But the great thing about
is not only does your homeowners insurance cover that if that happened.
But 2, Airbnb has policies in place if you follow the procedures which would be
if they did it maliciously, you're going to file a police report. If
they did something where they just mess up a few tiles, just make sure you take
some pictures and you file the claim before somebody else checks in, okay? So,
those are just the tips there on how to make sure that you can get your money
directly from Airbnb in some of these other websites that you will host your
short-term rental on. And last but not least, I would be remiss if I didn't give
you just one, a bonus. When we are talking about homeowners insurance and short-
term rentals, we got to talk about before any of this ever happens. You got to set
the rules for your property. And the key to not really dealing with insurance
companies and having to file claims is to make sure that one, you set really
clear rules as to what your policies are. Okay? Let people know to take their shoes
off. Let people know that the that they stain the tile is that they'll be
charged for them. Let people know how many towels you have and that
you're taking keeping track of that. These are just some of the things that
you can do and manage in your house rules. Or in other words, the rules that
you set for your house that you give to guests. Because I'll be honest with you,
most people, they follow the rules. It sounds crazy. I know we think that
everybody or is rule breakers and people are crazy and trying to do stuff. But the
fact of the matter is, if you set the rules properly and you communicate your
rules to you of your house to your guests, most people, not all, but most
people really do follow the rules. So, make sure that you make the rules.
Okay. So hopefully, you got all of what you need for homeowners insurance and if
it is covered by short-term rentals. I gave you the what, the who, the why, the
when and how to set the rules. So, please take a moment and subscribe to my
channel if you haven't already. I have a full course of videos you can actually
watch this entire playlist and get fully trained on how to do this
for free. I just love you guys so much and I want
to make sure that you are successful. To your success.