Cost of Short Term Rental Insurance
Most insurance providers offer pretty affordable plans, considering the coverage included in short-term rental insurance policies. In addition, you can get a free quote from each insurer to determine how much you'll need to pay each year.
The average cost for a short-term rental insurance policy ranges between $2,000 and $3,000 every year in the US. However, this range can increase up to $9,000 per year if your rental home is in popular tourist destinations like Florida or California.
Here are a few factors that influence the cost of your short-term rental insurance policy:
Property Location
Of course, the location of your short-term rental is the most influential factor. If your rental is near a tourist attraction, the cost of your insurance plan will increase drastically.
Rental Frequency
Some short-term rental insurance policies only cover the days that guests are staying at your property. As a result, the rental frequency is also an influential factor in the cost of your insurance plan.
If your rental is used very frequently, the insurance costs will be much higher.
Deductible
If your deductible premiums are high, the monthly insurance cost will be lower than average.
Replacement Costs
Replacement costs also influence the cost of short-term insurance policies. For example, if your property is full of expensive assets to repair, your insurance bill will be much higher.
Amenities
Lastly, the amenities provided in your short-term rental also affect the insurance cost. Amenities that bump up the insurance bill due to higher risk potential include hot tubs, fireplaces, and swimming pools.
People Also Ask
What type of insurance should I get for an Airbnb?
Those renting their homes on Airbnb for short stays should purchase short-term rental insurance. This includes renting out the whole unit or just one or a few rooms. Short-term rental insurance supplements AirCover protection.
How much is insurance on an Airbnb?
AirCover provides up to $1M primary liability in case of property damage or bodily injury. The average cost of a short-term rental policy on an airbnb is around $1,500, making it slightly more expensive than a long-term rental landlord policy.
What type of insurance do you need on a vacation rental?
Short-term rental insurance is an insurance plan that covers vacation rentals while a guest is staying on your property. This insurance covers damage to the property, as well as liability exposure if a guest gets injured at your property and sues you.
What is a good return on a short-term rental?
Short-term rental property owners can generate a few hundred to a few thousand dollars a month on their rental. In general, a good return on investment (ROI) on a rental property is anywhere from 8% to 15%.
Is owning a short-term rental worth it?
Short-term and vacation rentals can be very profitable, depending on the location, type of property, and maintenance costs. In general, a good return on investment (ROI) on a rental property is anywhere from 8% to 15%. For short-term rentals this can be as high as 20%.
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