Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

3,361
Posts
4,777
Votes
Collin Hays
#4 Short-Term & Vacation Rental Discussions Contributor
  • Property Manager
  • Gatlinburg, TN
4,777
Votes |
3,361
Posts

"Not to worry, I have insurance:" The risks that insurance might not save you from

Collin Hays
#4 Short-Term & Vacation Rental Discussions Contributor
  • Property Manager
  • Gatlinburg, TN
Posted

When we invest in a vacation rental, it’s easy to get caught up in the excitement of a new and novel enterprise. What could be more fun than outfitting a cabin with cool furniture, adding a Keurig, and hanging the proverbial shingle on Airbnb: “We’re here!”

But the less glamorous part of owning a vacation rental is protecting guests from serious—and sometimes obvious—hazards.

A friend of mine had a claim about two months ago after a 400-pound man fell through his deck. Fortunately, the property was insured and the claim was settled.

What concerns me more is gross negligence: serious, known—or readily discoverable—risks that an owner consciously ignores. Depending on the policy and circumstances, that kind of conduct can create major liability and may jeopardize insurance coverage.

What might that look like?

  • Ignoring large wasp nests or beehives until a guest or child is stung repeatedly, possibly with fatal consequences.
  • Failing to address bats, rodents, or other pests that may carry rabies or disease.
  • Ignoring electrical hazards near hot tubs, pools, bathtubs, showers, or sinks—places where electricity and water can become a deadly combination.
  • Leaving slippery stairs, protruding nails, rotting deck boards, loose handrails, or deteriorated balconies unrepaired.
  • Continuing to rent after a guest, cleaner, or maintenance worker has reported a dangerous condition.

The key word is ignoring.

Saying, “I live 500 miles away and didn’t know,” may not be much of a defense if reasonable inspections and maintenance would have uncovered the danger. Distance does not eliminate an owner’s responsibility to establish a reliable system for inspecting, reporting, documenting, and correcting hazards.

You may not personally see every loose railing or rotting board, but someone should be regularly looking for them—and you should be able to show what was inspected, when it was inspected, and what was done about any problems.

When—not if—you eventually have a claim, the injured party, attorneys, insurance companies, and possibly a court will examine whether you acted reasonably as the property’s owner. They will want to know whether the danger was known, whether it should have been discovered, and whether you took timely steps to correct it.

Beautiful photographs and five-star amenities attract guests. A disciplined inspection and maintenance program protects them—and may protect your entire investment.

business profile image
SMOKY MOUNTAIN FALLS INC.
5.0 stars
1 Review

Loading replies...