Location of the property. The location of your rental property plays a significant role in determining short-term rental insurance costs. Properties in high-risk areas prone to natural disasters such as hurricanes, floods or wildfires will generally have higher premiums. Urban areas with higher crime rates may also increase costs due to the higher likelihood of theft or property damage.
Type and size of property. The type of property you rent out, whether it is a single-family home, apartment or vacation cabin, can affect short-term rental insurance costs. The value of the property matters, as more expensive properties will need higher coverage limits. Larger properties with more amenities, such as pools or hot tubs, may require more extended coverage, which can also increase premiums.
Rental frequency. How often you rent out your property can impact your short-term rental insurance costs. If you rent your property year-round, your premiums will likely be higher than if you only rent it out for a few weeks or months each year. More frequent rentals increase the risk of property damage or liability claims, which is reflected in the cost of your insurance policy.
Coverage limits and deductibles. The level of coverage you choose and the deductible amount you select will directly affect your premium. Higher coverage limits provide more protection but come at a higher cost, while choosing a higher deductible can lower your premium but means you will pay more out of pocket in the event of a claim.
Security and safety features. Properties with enhanced security features like alarm systems, security cameras and smoke detectors may qualify for lower insurance premiums. These features reduce the likelihood of property damage, theft or injury, making the property less risky to insure.
Personal liability coverage. Your premium will increase if you opt for higher personal liability coverage, which protects you from legal costs in case a guest is injured on your property. Though more expensive, this coverage is important for avoiding potentially high legal expenses.