If you own or operate Cabin and Vacation Rentals, it’s likely that one of your busiest seasons is Memorial Day through Labor Day. You may have more occupants, and at a higher frequency than during the slower months of the year. So, does more use – and more users – equate to higher risks for your property? It may, and let’s take a look at how.
Damage from Renters
Even well-intentioned renters of your property may cause damage by accident, and these could be small concerns or large issues. The more people that are using the property, the higher the likelihood that an issue will occur. Doing a thorough check after renters complete their stay may help you identify any issues that need to be addressed before they become larger problems.
Risks for Liability
Having families or groups on your property under their own supervision can sometimes lead to accidents or injuries. And while you may have the proper structure in place to avoid significant liability, that doesn’t mean lawsuits can be completely prevented. In the litigious world we live in, there are unfortunately some “bad actors” as well. Having as much documentation of maintenance and systems in place might help you avoid a lengthy legal issue.
One specific area to monitor liability is for properties with pools and/or hot tubs. Be sure to have clear rules of use and waivers of liability in your rental agreement to help protect the interests of you and the renters.
Seasonal Risks
The Summer months also have concerns around their weather impacts. Dry weather can result in wildfire conditions; heavier storms can result in flooding, lightning strikes, or hail; and more active wildlife can also be a concern for property.
Preparation is the Key
Preparing your property for these risks and having the right coverages in place should an issue occur is critical. Some steps for preparation to consider include:
- Have very clear policies in procedures in place. Have extensive language in your rental agreement that addresses use and liability. Ideally, work with an attorney to review the language.
- Maintain your property. When you keep up with maintenance and fix issues as they arise, you are much more likely to avoid something larger occurring. Small leaks, loose fixtures, and unchecked equipment can result in larger problems if left unchecked.
- Review and understand your insurance. What would you be covered for, and what may be excluded or uncovered under your policies? What other options – like umbrella coverage – may be available?
Let us help you review these options and determine the coverages that are best for you! Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and let us help you get started.