Nowadays, private rental properties have become extremely popular among both residents and tourists alike. Consequently, the demand for comfort, convenience, and facilities similar to hotels has increased. People staying in these homes are carefree, causing unintentional damage to the property. The homeowner’s insurance policy does not offer compensation for damages caused by the guests staying for a short period. Whether you are renting out your property yourself or have given it to a company that helps manage Airbnb properties, you may need an added sort of damage protection.
What Is The Term Damage-Protection?
Damage protection refers to protecting your short-term Airbnb rental property against damage. It is otherwise known as damage protection insurance. It is an insurance policy that is designed to offer the necessary coverage to your guests renting your property against a range of accidental damage. However, the rental insurance does not apply to their family and friends staying with them free in your rental home.
Coverage Is Offered By The Damage Protection Insurance Policy
The damage protection offered through this rental insurance policy will compensate your home, covering all liability exposures when occupied by a paying guest. This type of insurance policy or damage protection will safeguard you from all fiscal responsibilities. It will also protect you from court cases filed by your paying guest. Some of the items which come under the coverage of a short-term rental insurance policy include:
- Loss of revenue
- Surplus use of utilities
- Liquid liability
The coverage is applicable only for the days that your guest stays in your rental property.
How Can You Provide Damage Protection To Your Rental Property?
There are several other options available for protecting your short-term rental property from damages. One of those options is to collect an additional amount as a deposit from paying guests. It is also a better and safer option to provide the best damage protection for your short-term rental property.
If you book guests for your Airbnb property through a property management agency, the Airbnb property manager of the agency will provide some kind of protection through a property damage deposit in addition to the rent. These deposits will usually cover most unintentional damage. Some agencies add a meager sum to the daily rent for added damage protection rather than requesting a separate deposit from guests for accidental damage.