Owning a rental home or Bed & Breakfast (B&B) can
be an excellent investment opportunity. B&B’s and rental homes are very
popular amongst travelers because they offer their guests a unique and intimate
way to explore a new location, with a more comfortable “at home” feel than can
be found in a typical hotel.
Whether you choose to rent out your entire home, just a
room, or another property entirely, hosting guests can be a great way to earn
income. However, having a rental home or B&B as a business is more
complicated than just making your property available for people to book. Read
below to learn more about these two types of properties.
Owning a short-term rental property:
For starters, you’ll want to check with your town or municipality to ensure that you are aware of all laws and regulations that may apply to short-term rentals. Next, owning a short-term rental property requires managing finances, guest communication, and property maintenance after each use. You’ll want to have a plan for any maintenance mishaps, like a leaky faucet or power outage, that may occur during a guest’s stay. There is also the potential for damage or theft caused by your guests, or damage to your property from weather related events, while being rented.
What you need to know about insuring your rental property:
Although damages may feel like a minor detail, it is important to have insurance to protect your property and yourself, as the owner. At NYCM Insurance, we offer business insurance policies that can be tailored to your specific needs for your rental home or B&B that are different from your typical homeowner’s policy. Making sure your insurance policies meet your needs is always important, but it is especially so when you own a business. You’ll want to ensure you are covered if a guest is injured on your property, or if a large loss like a fire occurs while the property is being rented.
Your independent agent is the best resource to ensure that you are getting the best price for your insurance without sacrificing any essential coverage. When you discuss your policy with your agent, be sure to provide details on the property type, what you intend to use it for, and any other details so that they can help tailor the policy to your needs. Your agent will also be able to answer any of your questions about what is covered under your policy and what’s not.
Curious to learn more about your business insurance coverage options for a rental property? Click the button below to find a local agent and receive a free quote today!
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