Having a vacation home in Osage Beach can be nice to escape from the day-to-day. But, if you’re like many vacation homeowners, you might want to rent your home when you’re not using it.
There are pros and cons to opening your home to others when you’re not around. Renting a vacation home can help you bring in some extra money on a property that would’ve otherwise been sitting vacant. However, allowing renters inside your home comes with added risk. Those risks will often impact your homeowner’s insurance rates.
Here’s what you need to know about rental property insurance before turning your Osage Beach vacation home into a vacation home rental.
1. Location Matters
Like location plays a part in how you insure your permanent home, location also impacts the cost of homeowner’s insurance on a vacation home.
2. Rental Terms
Some renters stay for a quick weekend. Others want to reside in your home for an extended period, or even seasonally. Depending on your rental terms, you might need to adjust how you insure your property.
If you’re primarily renting to short-term renters, having protection from lost rental income, property damages, or accidental injuries in your home is essential. Longer-term rentals might require that you cover your vacation home if your renter’s property gets stolen or damaged. It’s good to talk to your insurance agent if you’re not sure whether these elements are covered under your homeowner’s insurance policy today.
3. Included Amenities
What do you use to make your vacation home stand out on vacation rental sites like VRBO and Airbnb? Perhaps it’s that swimming pool in your backyard. Or maybe it’s because you have waterfront property with a boat deck. Having or being close to specific amenities can influence your homeowner’s insurance rates and coverage.
Talk to your insurance agent to determine whether these amenities will increase your homeowner’s insurance or whether you have enough coverage as is. In many cases, there may be underlying liability risks that could require a small addition to your policy to keep you better protected.
4. Your Osage Beach Vacation Home
In Osage Beach, we’re fortunate to have a wide variety of homes for renters to choose from. Depending on your home or unit’s age, style, and structure, you may need to adjust your policy’s coverage or cost.
This adjustment is particularly common when the home is located in a condo or area with HOA fees. Often, these associations offer certain shared coverages that will impact how much you need for your own stand-alone homeowner’s insurance coverage.
5. Knowing the Condition of Your Vacation Home
How often will you be able to check on your vacation home? If you’re far away from the Osage Beach area, the answer is not often. However, you can likely check in on it frequently if you live nearby.
Regular maintenance is essential for any home, but for a vacation home, it’s even more critical. Being able to visually inspect and verify that your home is in good shape will help stop potential damages and claims before they happen. If you can’t be close by, having a property manager help inspect the home and ensure everything is in working order between renters is a good idea to get out ahead of any possible claims.
Are You Covered?
It’s important that you carry the right coverage if you’re looking at renting out your Osage Beach home as a vacation rental. Talking to an insurance agent can help you verify that you have sufficient coverage and won’t be surprised by unexpected costs due to claims you thought your policy would cover. Contact us today to request a proposal for your Osage Beach property.
