The 10 Best Facts about Short Term Rental Insurance in Arizona

When renting out a property or your personal space, you may come across short term rental insurance in Arizona. This is a great option for those who want to rent out their space for a short amount of time. You may save money when switching to short term insurance and get the coverage that you need.

Here are some of the most common questions we at Insurance Professionals of Arizona (IPA) get about hazard insurance for businesses:

1. What is Short Term Rental Insurance in Arizona?

What is short term rental insurance in Arizona? It is a common question that comes up when clients are looking for insurance for a space that they are renting out. You may have heard of renters insurance, landlord insurance, liability insurance, and homeowners insurance.

Short term rental insurance is a specific type of insurance. It is meant solely for those who rent out a place for a short amount of time. Most insurance policies classify short term insurance as less than 62 days. This type of insurance is great for those using their space as a vacation rental.

2. Replacement Cost and Short Term Rental Insurance

Short term rental insurance in Arizona covers replacement costs. This is great for you as a rental owner because if anything happens, you use your insurance. Examples of replacement costs include refrigerators, room damages, and furniture. These are things that guests and clients can damage or ruin during their stay.

When it comes to the actual cost of the item that needs to be replaced, it can be a little confusing. You may have bought something that cost 150 dollars several years ago. If it is damaged, you will receive the amount of money that it is valued at now. This allows you to put the money towards a new fridge or whatever has been damaged.

If you have more questions about replacement costs or any other costs, be sure to reach out to your insurance agent. They can give you a better idea of what your short term rental insurance in Arizona will cover and how much they will cover for replacement costs.

3. Covered Loss

Covered loss is another term that you may hear when talking about short term rental insurance. You may hear the term when discussing insurance in general. It is important to know what losses will be covered if your property is damaged somehow. That way you will know how to budget and what you will need to buy if something becomes broken or needs to be fixed.

There are several items that are covered when it comes to covered losses. These include property loss, injury, and even death on your property. What exactly is covered is determined by the insurance provider and the insurance package.

It is important to know what is going to be covered before you sign the insurance papers. If something is not covered that you feel needs to be covered, ask for other options. Your insurance agent should be able to provide you will more insurance packages.

4. Rental Home

Having a rental home is a great way to have extra income. When it comes to insurance, you will need to choose how you are going to rent out your home. If you are doing something more long term, longer than 62 days, you will want to look into landlord insurance.

Landlord insurance is something that Insurance Professionals of Arizona offers as well as short term rental insurance. If you are looking for shorter term rental insurance, short term rental insurance is a good fit.

5. Business Insurance and Short Term Rental Insurance

Business insurance is going to be something that you will need if you have a business. It is helpful in covering your building location and the products that you are selling. You may need to get several types of insurance for your business. Be aware of what you are getting with each insurance package.

Short term insurance is good for people who are using online platforms to rent out their space. One qualification for short term insurance is that people can’t stay for more than 62 days in that space. This is great if you rent out a room or space during the holiday season.

6. Short Term Vacation Rental

Short term rental insurance is perfect for short term vacation rentals. It is perfect if you use an online service such as Airbnb or VRBO. These sites do not have insurance that benefits you or covers any damages that can occur.

If or when you decide to get short term rental insurance, it works similar to any other type of insurance. You will meet with someone, either in person or online. They will go over what your insurance package covers and what you need to sign. From there you will pay either annually or monthly.

7. Proper Insurance

If you do a quick internet search for renters insurance, you will find a lot of different insurance options. There are many options that include renters insurance, personal property, additional living, and liability insurance.

These are all wonderful options but there tend to be some gaps in coverage. This can leave you in an odd situation if you need to use insurance but your insurance policy doesn’t cover it. We suggest making an appointment with an insurance agent if you are not sure what kind of insurance you need.

If you do not know where to start, give us a call at (480) 981-6338 to schedule an appointment with an insurance professional. They can help you sort out what you want to be covered and what type of insurance you are going to need. From there, they can present different insurance package options. You will be able to choose an insurance package that fits your budget and coverage needs.

8. Renting Your Home in Arizona

If you are renting out your home, you know that it is a big deal. You have people that are using and living in your place. There are situations where you may just be renting out of your basement or a separate level of your house. This is a great way to make some extra money to use for your mortgage or other expenses.

It is common to think that your home insurance will cover your whole home when you rent it out. Home owner’s insurance does not cover any rental area. This means that you will need to get another type of insurance that will cover your rental property if anything happens to it.

You have several different options when it comes to insurance and renting out your home. If you are looking to rent it out year-round to renters, you will need landlord insurance. But if you want to rent it out for shorter amounts, like a vacation rental site, short term rental insurance may be a great fit for you.

9. Airbnb

When you sign up to rent your property out with Airbnb, you may come across a document that says that Airbnb offers free renters insurance. This sounds like a great option and when you see that they offer 1 million dollars in coverage. The coverage is both for property and liability.

But here’s the catch. While it may be free, it is not actual insurance. You read that right, it does not actually cover you in terms of insurance. The coverage that Airbnb has is known as commercial property insurance and it is for Airbnb. They are in control of who they choose to cover and what they want to cover.

If something serious happens to your rental place, it is safe to say that Airbnb is not going to cover it. That is why you should look into short term rental insurance in Arizona. Short term rental insurance in Arizona is going to offer you real cover for any damage that is done to your rental property.

10. VRBO

VRBO is going to be similar to Airbnb. You will want some type of insurance if you are renting out your space. There is a tendency to think that you can just add coverage to your home insurance. This is not the case and if you need to use it, your claim will most likely be denied.

Short term rental insurance in Arizona is a good option if you want to have coverage over your property. Keep in mind that short term rental insurance in Arizona does not cover the damage caused by your family or relatives. It does cover damage done to your property when renting it out to people.

When thinking about short term rental insurance in Arizona, it is best to find an insurance professional. They can answer any questions or concerns that you may have. At Insurance Professionals of Arizona, we love answering questions about all things insurance-related.

At the end of the day, short term rental insurance in Arizona is a great option for anyone who is looking to rent out their space for a short amount of time. Have a minute or two? Fill out our online quote to see what short term rental insurance in Arizona will cost you.

Here at IPA, We Care About You

Our business has over 15 years of insurance experience in the State of Arizona. IPA strives to make your insurance experience as smooth as possible. That is why we offer online and in-person options for you. This allows you to choose what is going to be best for you and your situation.

We want you to feel comfortable about getting insurance. Let us answer any questions you have. We let you choose from over 40 insurance providers. This lets you have control over what matters most to you. We provide both personal and professional insurance options.

Hazard insurance for businesses is a great option that any business owner should look into. Different coverage options can fit within any budget. If you have any questions about hazard insurance or what is best for your business, give us a call.

At IPA, we have insurance specialists that are knowledgeable about all things related to business insurance. Even if you have general questions or do not even know where to start, we can help you out. Let us show you how we can help protect your business. Start today by getting a quote for hazard insurance online.