In true vacation rental markets, it will not be a challenge to find a policy to cover your property as a short term rental. It’s important to know that in many cases, these policies include higher premiums than your typical homeowners policy.
With good reason.
If you have guests coming and going constantly, anything could happen & you need to be protected in the event something does. Most STR policies include 1 million dollars of liability coverage with some additional funds towards medical costs. Furthermore, make sure that these policies also include personal property replacement costs as well as loss of rents (usually factored at a year).
Since we bought our vacation cabin 5 years ago, it was time to revisit our policy to keep it up to date with the changes in our economy and values across our area. Good thing we did as based on market value, we were about $100k under on dwelling towards reconstruction costs! We also increased our personal property coverage as well.
It total, the annual premium only increased by $1,000, but the piece of mind knowing that we are covered and up to date with the current values is priceless.