Getting an insurance policy for your vacation rental property is a must to protect you and your property. You need to have some form of safety net to make sure you’re ready to face whatever happens, and Allstate is a well-known company to have your back. In this article, we’ll explore what an Allstate short-term rental insurance policy entails and what type of coverage they offer for you.
What Should an Insurance Policy for Short-Term Rental Include?
You most likely will hear that you should get either a homeowners or landlord insurance since you’re most likely going to be occupying your property while renting it out. But most insurance agencies will raise their eyebrows the moment they find out that you rent a part of your property to short-term guests—meaning those who stay for less than 30 days. Most homeowners policies will be voided as insurance companies consider short-term rentals a ‘business venture.’ A landlord policy will fall short also, since short-term guests aren’t considered ‘tenants.’
While a commercial insurance policy will offer you some protection, it still lacks a critical component: loss of income and liability coverage, which is especially important when you live on the property.
The best coverage is a tailor-penned 3-in-1 insurance policy with aspects of homeowners, landlord, and commercial coverage, like the one provided by Proper Insurance. Another option is to purchase a supplemental home-sharing insurance policy to add your existing homeowner policy, like the one offered by Allstate HomeAdvantage.
Allstate: “You’re In Good Hands”
Founded in 1931 at the height of the Great Depression as part of Sears, Roebuck, and Co, Allstate has been “as passionate as ever about creating a society where customers feel protected from life’s uncertainties.”
As one of the insurance companies that spearheaded the insurance industry in America, they have been at the forefront of providing insurance policies for cars and other vehicles, homes and properties, comprehensive personal liability, loans, and disaster protection.
In the effort to stay true to their slogan, “You’re in Good Hands,” they have also expanded to offer policies for rental properties, especially short-term and vacation rentals like Airbnbs and Vrbos.
The HostAdvantage program is Allstate’s insurance offering for home-sharing. Available in Arizona, Colorado, Illinois, Michigan, Tennessee, and Utah, they provide additional coverage designed to be an add-on to the existing homeowner policy you have for your property (ideally said existing policy is actually also covered by Allstate already).
Here’s how Allstate claims you’re in good hands with them:
How Allstate HostAdvantage Protects You
Base Endorsement – A home-sharing policy can start as low as $50 for limited coverage for a year, and up to $10,000 for personal property coverage. Policies vary greatly depending on the size of your property and specific term limitations on the coverage you want for you and your property.
Property Damage Coverage – In the unfortunate case of a guest causing accidental damage to your property while renting, the Allstate HostAdvantage policy can cover up to $10,000 per rental host period. This coverage also includes vandalism and theft. You can customize the property damage limit that works for you and your property.
Amenities Liability Coverage – You also have the option of extending your coverage to certain amenities provided within your property like pools, hot tubs, and the like. Though, it is most likely that this will be an additional policy outside the HostAdvantage program and the standard homeowners policy from Allstate, as they also offer insurance plans for property amenities and off-property belongings like bikes, jet skis, etc.
Pet Liability Coverage – One of the most common insurance claims is injury caused by a pet, and Allstate HostAdvantage has included such incidents in their coverage.
On-Premise Medical Coverage – Say a guest tripped or fell down a flight of stairs within your property while staying with you…HostAdvantage can cover the guests’ medical bills.
Allstate HostAdvantage is meant to be a supplement to your existing homeowner’s policy, and while it’s an affordable option for owners who live on the property to manage the part of their homes they rent out, HostAdvantage does severely lack important components for a short-term rental, like business loss coverage and specific liability coverage.
You can also check out other insurance companies that offer great options for Airbnb and Vrbo vacation rental owners. If you want a more comprehensive coverage for your property, get our take on why Proper Insurance is the choice for many short-term rental property owners and managers.