Running a vacation rental is a great way to turn your property into a side hustle. For the most part, guests don’t cause damage, making this a great source of passive income. However, it’s crucial to know the insurance basics before you say your property is available.
Homeowners Insurance
Most homeowners have insurance through a homeowners policy, but those usually won’t cover a vacation rental. Most policies specifically exclude anything that counts as “business use.” In Moberly, MO, hosting a vacation rental is considered running a business. It’s essential to carry commercial insurance.
Commercial Insurance for Vacation Rentals
Commercial policies will cover the property while it is used as a short-term rental. If you alternate between staying in your home and using it as a short-term rental, your commercial policy will cover business use, while your homeowner policy will cover you while you’re staying in the house. Note that coverage varies among companies. Speak with a representative at Swartz Premier Group Insurance to learn the details.
Obtaining a commercial policy can bring you peace of mind. These policies often cover lost rental income if the property isn’t inhabitable. They can cover damage from guests and provide crucial liability protection in case a guest sues you.
Missouri Requirements
Although Missouri doesn’t mandate comprehensive commercial insurance for short-term rentals, there are a few regulations to keep in mind. Rental owners are often required to obtain liability policies and proper permits. You may need a business license and rental certificate of compliance. You must meet occupancy guidelines based on the size of your home.
Agents at Swartz Premier Group Insurance can help you learn more about commercial insurance in Moberly, MO. Contact us to learn your options as a vacation rental host.
