Short Term Rental Insurance in New Hampshire
What is short-term rental insurance?
An increasing number of New Hampshire homeowners and investors are finding the short-term rental market profitable. Should you enter this market, whether as a gig or full-time work, it’s important to review your short-term rental insurance needs. Failing to properly insure could lead to a disastrous experience with this income strategy.
Short-term rental insurance policies are tailored for landlords who rent space for a few days or weeks. Policies tend to provide good yet affordable coverage.
Who in New Hampshire should purchase a short-term rental policy?
Most people in New Hampshire who offer short-term rentals should consider this insurance. Renting out a single room, primary home, second home or investment property.
While most people who offer short-term rentals via online platforms or local networking need insurance, precisely how short-term rental coverage should be procured depends on the rental and existing insurance options.
How long can rentals be and still get coverage through a short-term policy?
How long rentals can be and still receive coverage depends on the specific terms of a short-term rental policy.
Some policies might restrict rentals to a few days or weeks, possibly having consecutive and/or annual limits. This is more likely when procuring coverage through a homeowners policy or endorsement.
True short-term rental policies can have similar limits, but policy options are usually available for rentals lasting up to 6 months. A landlord policy is often necessary if renting beyond 6 months.
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Coverages to Consider
- Dwelling Coverage:
- Personal Property Coverage
- Liability Coverage
What coverages do owners need when offering short-term rentals?
Every homeowner and investor should evaluate their personal coverage needs with a knowledgeable insurance agent, someone who specializes in these policies. In general, there are three main coverages to consider:
- Dwelling Coverage: Might cover the rented property against damage. This can include natural disasters, renter-caused damage and other causes of damage, depending on a policy’s terms.
- Personal Property Coverage: Might cover personal belongings against theft, other loss and damage. This can include items such as books, decor, furniture, tableware and similar things, again depending on a policy’s terms.
- Liability Coverage: Might cover lawsuits filed by renters or their guests that arise from accidents occurring on the property. Landlords can be liable if negligence is established.
There are still other coverages to consider. You may want protection for pet-caused accidents if you rent a room in your personal residence, and have a dog or other animal. You may want protection against bed bugs that renters could bring in. If you’re doing this as a full-time vocation, some form of income coverage might be useful.
An insurance agent who’s familiar with short-term rental policies can help residents explore all of the coverages that are available.
How can insurance be procured for short-term rentals?
Residents often have a few different options when insuring against the risks that come with short-term rentals:
- Homeowners Policy: Homeowners who rent out a room might already have coverage through their homeowners policy. Not all policies provide coverage as a standard feature, and any provided standard coverage might be severely limited. This could be sufficient for an occasional rental, though.
- Homeowners Endorsement: Some homeowners policies don’t include coverage for short-term rentals as a standard feature, but offer it through an optional endorsement. An endorsement provides specific protections, and can easily be added onto a policy for a nominal additional fee if a suitable endorsement is indeed offered.
- Specialized Policy: If coverage isn’t available through a homeowners policy, a short-term rental policy is usually available. An independent insurance agent can help shop policy options from different insurers.
While online platforms often offer some complimentary insurance, this isn’t always comprehensive enough to protect against the various risks that residents are exposed to.
How can New Hampshire renters get short-term rental insurance?
For help exploring short-term rental insurance options, including homeowners policy features and short-term policies, contact the independent insurance agents at Portsmouth Atlantic Insurance. Our New Hampshire agents will work closely with you to determine the best solution for your particular rental situation.
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