Owning – Homeowner Tips & Resources

What You Ought To Know About Rental Property Insurance

PGA West, La Quinta

Many home and condo owners choose to rent their properties to short-term renters (less than six consecutive months). While this can be a great income opportunity, you'll want to check your homeowner policy for coverage. If it won't cover your home for short-term rental usage you'll want to look for a policy that does.

In speaking with Richard Cox of The Cox Insurance Agency in Palm Desert, Richard said, "We can now cover most rental homes and condos for short-term rentals at a very reasonable cost. Representing a first in the industry, this Comprehensive Property and Liability Insurance Program was created especially for homes and condos that are being used as short-term vacation rentals."

Short & Long Term Rental Coverage 
Richard further said, "This new program can be used by those who book their homes year-round or by those who only book a few days, weeks or months per year. Owners can now have peace of mind knowing that they are properly covered at a reasonable cost."

So, even if you think you are properly covered, you'll want to review your policy, or have your agent review your policy. "Most vacation homeowners are simply not covered for the risk of short-term rentals." 

Richard Cox can be reached at 760.797.1800.
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Question of The Month – HOA Rental Rules

Enclave Mountain Estates, La Quinta

Question) Do most communities allow short or long term rentals in the desert?

Answer) Each community HOA has their own rules and regulations including rules regarding renting your property. Some HOA’s allow short-term daily and weekly rentals, while others allow only longer-term rentals of one month or more.

We can guide you on the rental policies governing most popular desert communities. You are also entitled to receive a copy of an HOA’s CC&R’s and rules during escrow and before committing to a property purchase.

Communities without an HOA generally have no rental restrictions although city regulations may be in place.

Does Your Insurance Carrier Consider Your Vacation Home Vacant?

I mentioned in a previous post that if you choose to rent out your vacation home or condo, you should let your agent know. But what is considered a vacant home? We checked in with local agent Richard Cox of Cox Insurance to get the scoop on this subject.

“Insurers know that vacant homes have a much higher occurrence and severity of damage,” Richard said. “Most companies want the homeowner to be in the home every 30-days, but will accept a visit from friend or even a hired property watch type service.”

The Vintage Club, Indian Wells

“There are many official and unofficial services of this type offered in our desert. Most carriers will accept this type of service. Many of these services will feed cats, walk dogs, flush toilets and even run sinks and water plants. Some will even send or email a ‘property check report’ to the homeowner at a very reasonable cost. These documented reports are perfect for showing insurance carriers that the property was not abandoned in the event of a claim.”

“Short term rentals are often the most miss-categorized property. Second homeowners really need to let their insurance agent know if they are renting it for periods of less than six months. There is almost nothing worse than finding out there is a problem when you are filing a claim.”

Many of the local property watch services charge as little as $30 to $35 per visit to check a property. Thank you Richard for this important information. Richard Cox can be reached at (760) 797-1800