While your second home is just that – a second home – and can can be legally and properly covered by a homeowners’ policy, there are additional benefits to insuring a second home that is being rented out for short-term rentals under a commercial policy.
Now, granted, a commercial policy can sometimes be as much as twice as expensive as a simple homeowners’ policy, but here in Colorado, depending on the Insurer/Underwriter, can also provide very valuable additional coverages including coverage(s) for lost revenue and increased, standard liability coverage.
Some of our homes in Windcliff are generating their owners $3,000-$5,000 of additional income each month. In the event of a catastrophic loss event, the missing income stream can have a significant impact on the homeowners family finances. Commercial loss of revenue coverage helps bridge the recovery.
While most homeowners’ 2nd home policies include a suitable level of liability coverage, some simply do not. Or in the case where the home is owned by a separate LLC, a simple homeowners policy may not provide suitable coverage. Commercial policies typically start at $1,000,000 of liability coverage and can be increased for a modest additional premium.
So many of our homeowners in Windcliff cover their homes with a commercial policy for these additional benefits and peace of mind.
The Guest Perspective
But what about the guest? An accidental damage insurance policy is added to every Windcliff vacation rental which provides $10,000 of contents coverage to not only the guest, but also the homeowner and Windcliff Homes, LLC as “additional insureds.” This coverage gives all three parties the peace of mind that any damage to contents of the home will be fully covered and easily reimbursed without debate, difficulty or judgement. Accidents happen. That’s why there’s insurance.
Most guests are covered for liability by their personal homeowners policies. Should there be a medical or structural incident in the home as a result of the guest using/renting the home, that guest’s homeowner’s policy is their primary insurance coverage so that policy will cover that guest for any losses and claims.
However, what if that guest doesn’t own a primary home and therefore doesn’t possess a primary homeowners’ policy to protect them? That’s where the guest damage insurance policy kicks into “second gear.” Windcliff’s damage insurance policy also provides $500,000 of liability coverage to not only the guest, but also the homeowner and Windcliff Homes, LLC as “additional insureds.” Once again, this provides EVERY guest and EVERY homeowner the peace of mind that a guest who isn’t owthersie covered by a homeowners insurance policy will be protected against the financial and personal stress of an undesirable medical event or structural damage to the vacation rental home.
Either Way – You’re Covered – So Enjoy Your Windcliff Vacation!
So in short, Windcliff’s got you covered: guest and homeowner can rest assured the right coverages are being provided in the event the worst happens. And when the worst doesn’t happen, you enjoy your Windcliff vacation in ultimate peace of mind. Enjoy those views!