Insurance apartment for short -term rental. What do you need to know?

Along with the growing popularity of short -term rental – both among the owners of real estate and travelers – the need for proper security of assets is becoming more and more clearly visible. Traditional insurance policies often do not take into account this form of rent or contain many exclusions, which can lead to serious financial losses on the owner’s side.

Short -term rental and risk

As experts emphasize, short -term rental carries specific risks.

– As a short -term lease operator, we perfectly understand the rental and risk industry. Damage to this type of rent, contrary to urban legends, is small and there are mainly damage such as the failure of water and sewage devices and flooding, i.e. events that happen when living permanently. Nevertheless, there is a risk factor related to tenants’ rotation – explains Ewa Wielgórska, president of Fairy Flats, a short -term rental company and offering insurance.

As he notes, even if 99 tenants fully respects the left equipment, one person can happen who will damage – inadvertently or, for example, by failing to do children.

– Having a good policy without exclusions is the basis – emphasizes the expert.

Short -term rental – what should the policy contain?

The short -term lease policy should include comprehensive protection of property – both building structure (walls) and permanent equipment, such as kitchen or floor buildings. Insurance of home movable property, including furniture as well as electronics and household appliances, is no less important. An important aspect of protection is also protection against burglary and acts of vandalism – including those that guests themselves can commit.

According to experts, a key element is also the civil liability insurance of the tenant, which protects the owner in the case of damage caused by the tenant, both in the apartment itself and in the property of third parties, e.g. neighbors.

As they indicate, the policy should also include 24 -hour assistance support, including the “Golden Hand” service and the repair of home appliances. An important element of protection is also the insurance loss insurance, which provides compensation in a situation where after damage the premises is not suitable for further rental.

Short -term rental – how to choose insurance?

When choosing insurance for a short -term apartment, it is worth paying attention to the scope of protection. It is crucial for the policy to comprehensively secure the property and take into account the specifics of the lease per day. It is also extremely important to thoroughly familiarize yourself with the exclusions of liability, which may limit the possibility of obtaining compensation in the event of damage.

Equally important is the choice of a proven insurance company, which offers products created for short -term rental. Currently on the market there are few policies realistically suited to the needs of owners of renting apartments on platforms such as Airbnb or Booking.com.

– Insurance brokers who do not know the specifics of the short -term rental market may unknowingly mislead owners of apartments renting their premises on Airbnb. There are insurance policies on the market that allow short -term rental, but in many of them we have tenants only in the field of fundamental risks, such as fire or flooding – explains Ewa Wielgórska.

As he explains, in the event of damage to the equipment, such a policy will not work very often.

– Police with rent protection is also rare when the apartment is not suitable for living as a result of a failure. These are very important issues when, for example, we have guests and we have to relocate them to another place – notes the expert.