Reduce the Likelihood of a Liability Claim at Your Vacation Rental
To reduce the likelihood of a liability claim at your short-term vacation rental you should first verify your insurance policy has adequate liability coverage for the risk you are undertaking.
If you operate a short-term vacation rental and you live in a city or county that has requirements for vacation rentals– ensure you are compliant with local regulations. These regulations generally require you to carry 500k of liability coverage. However, some communities require up to 1 million dollars worth of liability coverage.
Generally speaking, quality insurance policies built for vacation rentals will come standard with 1 million per occurrence, with a 2 million dollar aggregate. Details matter; however, make sure this liability coverage extends off-premise, and check the exclusions- this is where you will find what ISN’T covered in an insurance policy.
So you’ve verified that your insurance is adequate for the risk you’re undertaking and that it meets regulation minimums in your community, now with a little forward thinking, you can avoid many pitfalls that may be a potential liability risk:
Steps to Reduce the Likelihood of Claims
- Non-slip carpets
- Prohibit access to the swimming pool at the property and be sure it is fenced in.
- No trampolines, swing sets, etc., that may be potentially dangerous to children.
- Install child-proof devices on cabinets, drawers, and appliances.
- Avoid providing bicycles, watercraft, and other recreational equipment for guest use.
- Secure all storage units, garages, sheds, etc., that you do not want guests to access.
- Secure large items or heavy furniture to the wall by using wall brackets or straps.
- Ensure all stairs, decks, and balconies have railings on them.
- Install Carbon Monoxide Alarm, Smoke Alarm, Fire Extinguisher.
Finally, if a guest does have an accident, inform your insurance company immediately. Your insurance company should file a ‘Notice of Bodily Injury’ and will react accordingly.
