Do you own an investment property in Tennessee? Or perhaps you’re thinking about STR investing and want to know about insurance options and costs? At All Seasons Insurance, we understand the ins and outs of rental properties and can help you find the right type of coverage for your unique situation and avoid denied claims, lost income, and legal fees. Here are some things you’ll definitely want to know about investment property insurance:
1. A Standard Home Insurance Policy Doesn’t Apply
Home insurance for investment property is much different from primary residence homeowners insurance. You’ll need a commercial investment property insurance policy; some providers even offer specific policies designed for short-term rentals and investment properties.
From STR endorsements for an existing policy to DP-3 combined with commercial liability insurance, our experts are ready to discuss all of your options!
2. Loss of Rental Income Isn’t Automatic
Did you know? Hosts who utilize Airbnb, VRBO, or some other platform still need a separate policy, even with their platform's liability program or protection. Plus, insurance for an Airbnb rental doesn’t automatically include loss of rental income; since it’s not listed by default, you’ll need to add it as a rider.
3. Pricing and Coverage Depends on Occupancy Type
Whether you have a rental property with long-term tenants, a vacation home you rent out part-time, or a short-term rental listed on Airbnb, insurance companies offer various policy structures and prices depending on your occupancy. You may need a specialty policy for STR properties or a commercial policy, and that’s where our expertise comes in.
Another factor to consider when choosing an investment property insurance policy is Actual Cash Value (ACV) vs. Replacement Cost (RC). Lower-cost policies often pay only ACV, which deducts depreciation. If you have an older home, ACV vs. RC can really make a difference.
4. Liability Limits are Much Higher
Tennessee investment properties, particularly in the Smoky Mountain area (Sevierville, Pigeon Forge, and Gatlinburg) have more of a liability risk, due to wildfires, winding and/or steep roads, amenities such as hot tubs, indoor pools, and fire pits, and much more. You’ll not only want liability coverage but also an umbrella policy, ensuring you have the most comprehensive house insurance for an investment property.
Own a property in Nashville, Knoxville, or another big city? We can help with a variety of rental scenarios!
5. Property Managers Should be Listed as Additionally Insured
Many property management companies require this, but adding a property manager as an additional insured on your insurance policy on investment property is a smart choice. This not only protects you as the owner but also simplifies the claims process and can even reduce legal fees should a lawsuit occur.
Get A Rental Property Insurance Quote
Are you ready to talk about investment property insurance in Tennessee and what type of coverage would be best for you? Reach out to the team at All Seasons Insurance Group, one of the best insurance companies for investment property, and let’s discuss policy options!
