What is a Utah Short Term Rental & How Do I Insure One?

The Short Term Rental Industry Is Growing In Utah!

Utah is unique – we have Park City, St. George, Moab, Bear Lake and many mountain communities that are destinations for folks looking for a Short Term Rental Option.  The biggest appeal of a Short Term Rental – also known as STR’s is the size.  Many times you can get the whole family in an STR and be together instead of being spread out between three or four different hotel rooms. 

Utah Short Term Rentals are also very appealing to individual investors giving them an opportunity to 1) have a vacation home while 2) offsetting the cost by renting it out when they are not using it.  There are also many who rent out part of their homes on a STR bases.   What a great industry that has developed over the last 10 or so years.  So many families have investments they can enjoy that can also provide an income.  

What Insurance Is Best for a Utah Short Term Rentals?  
Short Term Rentals come in many shapes and sizes and it really depends on how you plan on using the property, here are some different scenarios we have seen.

Primarily Family Owned and Occupied STR’s.  

If your family plans on using your Utah Short Term Rental more than half of the time a personal lines insurance policy may provide adequate insurance coverage.   You will still need to insure the property as an STR and we recommend and can help increase the limits on certain areas of the policy to give you better coverage.  There will still be some risks that won’t be coverage, call Anderson Insurance Group for more information on Utah STR Insurance Coverage.

Short Term Rentals In Your Home.

Many people will rent out part of their primary home as an STR.  This can range from a bedroom, part of the home or a basement.   We see this a lot and its important to change your homeowners insurance policy to reflect that part of your home is rented.  This is a simple endorsement onto a homeowners policy and not that expensive.  Not every homeowners insurance company however offers this type of coverage so you may have to change carriers.   A personal lines policy again will probably be adequate for a Utah STR that is part of your primary residence. 

Short Term Rentals That Are More Like Commercial Properties or Motel/Hotels.

Some STR’s are more like a commercial investment where the owner even as an individual may never occupy the property or may only occupy the property occasionally.  In these cases, the property owner should really consider STR Insurance that is based on a commercial policy.  The liability on this platform is broader and the policy can offer coverage for things like Property Managers Commission.   

Loss Of Income For Short Term Rentals.

In our experience, one of the most important coverages left off of STR policies is Loss of Business Income.  The importance of this coverage really came to light during the pandemic but the risk has always been there.   We recently had a claim on a Short Term Rental property where the loss of rental income for six weeks the property could not be rented was greater than the $10,000of water damage to the property.   

Talk to a Utah Short Term Rental Specialist. 

At Anderson Insurance Group we insure more and different kinds of properties that any other agency in Utah.   Call one of our knowledgeable agents today for more information and to tailor a policy to fit your unique Utah STR.  

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