Friday, October 13, 2017

Insurance for Vacation Rental Owners

Insurance is one of those things that we hate to pay for, but are glad that we have it when we need it! If you are going to rent your home or condo at the Lake of the Ozarks to the vacationing public, you definitely want to make sure that you have your property properly insured. Keep reading to learn more about rental property insurance and loss of income coverage.

Rental Property Insurance

One of the first things that I tell new vacation rental owners at the Lake of the Ozarks that are joining our program is to let their insurance agent know that they will be renting out their property to vacationers. If there is a claim situation, that is not the time to let your insurance agent know that you have been renting out your property. You don't want any surprises or coverage denials when it comes times to make a claim.

Some insurance companies offer rental property insurance and some don't. Therefore, it's very important to check with your current company and not just assume that you will be covered if something happens. Also, different companies will have different limits on their policies. You may need to shop around to ensure that you can get the coverage you need. Some agencies won't go above $500,000 in coverage, while others will go up to $2 million.

Loss of Income Coverage 

In addition to letting your agent know that you are renting out your property, you will want to ensure that you are now covered for loss of income. While some homeowner policies would cover you in a rental situation, they may not provide for loss of income. We had this happen to one of our owners this past year when the unit above had a water leak. It took three months for all the repairs to be completed and he lost income in May, June and most of July. He was able to collect insurance money for that loss of income because he had the property policy.

When discussing your rental property with your agent, ask if there are any policy exclusions and exactly what is covered and what is not. Again, you don't want to find out that you are not covered when you need it most.

Finding an Insurance Agent 

If you go with an out of town insurer, make sure they know your market. For instance, they may assume property values are similar, when in reality they could be quite different. Also, if your property is a condo, you may only be responsible for the interior and your association would be responsible for the exterior. In this case, you may only need coverage on what you are responsible for replacing, any upgrades (and contents) and not the entire value (sale price) of your condo.

If you are thinking of renting your vacation property at the Lake of the Ozarks and have questions about insurance, ask an expert! Two great local agents we deal with are Chris Wagner of Farmer's Insurance, who can be reached at 573-302-0001 and Nathan Reid of American Family Insurance, who can be reached at 573-348-5451. Either one of them would be glad to speak with you about your Lake of the Ozarks vacation rental insurance needs.

Russell Burdette is the owner/broker of Your Lake Vacation, a professional vacation rental company at the Lake of the Ozarks since 1986. If you would like more info on renting your Lake of the Ozarks condo or home as a vacation rental, give us a call at 573-365-3367. If you're interested in making a reservation in one of our condos or waterfront homes at the Lake of the Ozarks, contact us at 877-284-0267.

For more information please call us toll free at 1-877-284-0267!!
4571 Osage Beach Pkwy, Suite A
Osage Beach, MO 65065
Local - 573-365-3367
Fax - 573-365-5076  

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