Roberts Insurance Group Blog
If you have an extra room or basement in your home or if you have a second home or investment property, you've probably considered renting it out as a short term rental property at one point or another. This has become a great way to make money and create passive revenue streams. The best part is the return on your investment. These properties tend to bring in much more revenue than a traditional long term rental.
If this is something you have considered in the past or are considering now, here are some things you need to know:
Need To Work With An Independent Insurance Agent
Why is this important? Because it is the best way for you to get the coverage you need at the best possible price. After all, you're doing this to make money and turn a profit, so it only makes since to improve your bottom line. By working with an independent insurance agency like the Roberts Insurance Group, you will get personalized guidance on the coverage you need and the benefit of having us shop your coverage around with over 40 different carriers to find you the best possible value for your home or investment property.
Make Your Agent Aware That Your Home Or Property Will Be Rented Short Term
If your agent doesn't know, then they can't help. If you plan on renting your property out on places like Airbnb, make sure your agent knows so that they can add the proper endorsement to your home policy or have it rewritten as an investment property with short term tenants.
Adequate Liability Coverage
Having increased liability coverage is a must-have for homes or properties that are rented short term. There's much more foot traffic and a higher likelihood of an injury, claim, or lawsuit. We recommend having at least $1,000,000 of liability coverage. This can be increased on your policy or with the help of an umbrella policy.
Loss Of Income
Loss of income coverage is crucial for your new investment. If a claim arises and you are unable to generate income for a period of time, it is important that the money keeps coming in. Having loss of income or loss of rent coverage will guarantee you continue to get a paycheck if your home is unable to generate revenue due to a claim.
At the Roberts Insurance Group, we specialize in working with homeowners and real estate investors. We're located in Canton, GA and help homeowners, investors, and landlords throughout the state.
Give us a call at 678-250-8133 or click below to see how we can help you!