Limiting liability when allowing pets in your vacation rental

Allowing pets in your rental has many benefits. Still, you want to ensure that you’ve read up on liability and any potential impacts it can have on your financial or legal security.

Liability and short-term rentals

Commercial liability insurance protects you from financial loss when renting out your property if you’re held responsible for an incident or accident. This is a crucial part of being a rental property owner, as theoretically, you could be held liable for the actions of your guests and their pets.

Some of the different forms of liability coverage offered are:

• Invasion of privacy. This can range from a house cleaner mistakenly entering the premises while guests are in or having a security camera in a private space.
• Off-premise liability. If you own a property on the water, this covers anything that may happen on the beach, docks, or small watercraft.
• Animal and pet liability. This is incredibly important for pet-friendly rentals, as it protects you from a pet biting someone or your guest being bitten by another dog.
• Bed bug and flea liability. Some insurance carriers don’t cover infestations, but if they do, it can be a great option for coverage especially as pets can track those pesky bugs in with them.

Evaluate your insurance

Your current insurance plan should be comprehensive and cover any and all potential instances involving pets both those that your guests bring and those that may be near the property and owned by neighbors. Some things to look out for include:

• Off-premises liability. As stated earlier, this protects you from anything that happens off of your property.
• Breed exclusions. Does your insurance include any exclusions for certain breeds? Dogs often banned from insurance companies include Rottweilers, Pit Bulls, and Doberman Pinschers.
• Dog history. Some insurance companies will not offer coverage if a dog has a history of aggressive behavior or biting.
• Exotic animals. A commercial insurance policy may not cover snakes, rodents, and other exotic pets.

Plan for damages

As the saying goes, “if you fail to plan, you plan to fail.” It’s inevitable that some damage will occur to your property when welcoming pets whether that be torn-up furniture or a chewed fence. That’s where a pet deposit or pet fee comes in handy. By including this fee in your booking and contract, you’re ensuring that you have a built-in buffer with smaller, expected damages. If damage is more significant, consult with your insurance and lawyer.

Communicate with guests

Communicating expectations to your guests is a huge part of maintaining a respectful and safe environment for everyone. As a rental owner, you should be connected with:

• HOA. If your property has a homeowners association, be sure that your guests have all the information on any rules and regulations they need to follow while in residence.
• Local council. This is to determine any ordinances you need to have guests follow, whether that be sound ordinances, curfews, etc.
• Wildlife management. Some areas are more prone to certain types of wild animals, such as bears, alligators, or snakes. Knowing what to do during an encounter can be helpful for both you and your guest.
• Caring for the property. Set clear expectations on how the property should be cared for internally and externally.
• Local waste management. If your property is in bear country, learning how to properly dispose of trash can make a world of difference in keeping everyone safe.
• Potty time. Designate or communicate areas where pets can relieve themselves.

✍️ It’s wise to have guests sign an agreement stating that their pets are up-to-date on all necessary vaccines and medications. That includes ensuring they’re on flea, tick, and parasite medication. After all, infestations can be expensive, and many insurance providers don’t cover them.

Require pet resumes

Unfortunately, not all pets are good candidates for staying at rental properties and one way to determine this is by asking pet parents to provide information on their pet so you can determine if they’re worth the risk. These can be questions such as:

• Are your pets up to date on their preventatives?
• What is their bite history?
• Do they have any training or certifications?
• Are they house broken?
• Do they (the pet owners) have liability insurance?
• Do your pets have any health concerns?
• How are they with other pets/children?

As with any relationship, it’s important for both sides to feel seen and heard and requiring a pet resume ensures that you as a property owner feel prepared and assured of the animals staying in your rental.

Create a pet-perfect experience

We’re going beyond pet-friendly by supporting the idea of a pet-inclusive rental, meaning that the rental supports and provides for pet’s needs from the furniture to the amenities. Not only does this win you points with pet parents, but it also reduces the likelihood of any destruction or agitation on the part of the pet. After all, helping to soothe and calm a stressed pet through providing a crate, toys, and blankets can prevent anxiety which can manifest in biting or tearing up furniture.

Increasing revenue by welcoming pets can be exciting, but be aware of the increased risk involved and how best to go about mitigating it.

Frequently asked questions

Should you allow pets in your vacation rental?

There are plenty of pros and cons to welcoming pets, and your decision will have to be based on your willingness to accept risk.

What is STR insurance?

Short-term rental insurance protects hosts from guest-related damages and liabilities that aren’t covered by a typical homeowner insurance policy.

Does animal liability for landlords only cover dogs?

No! It covers a variety of pets, but know if your policy has any stipulations on types of animal or breeds.

Can a landlord be held responsible for a tenant’s dog or pet?

It’s possible, yes. Consult with your insurance and lawyer to get the full picture of your liability potential.

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