Every year, millions of tourists book stays at vacation rentals across the United States – and that number is growing rapidly.
While vacation rentals aren’t anything new, the convenience of vacation rental platforms like Airbnb, HomeAway, and VRBO has attracted droves of people looking to turn their second homes into revenue-generating vacation rentals.
And so far, it’s been very successful. According to Statista, revenue from vacation rentals is expected to grow at 19.8% annually, resulting in a projected market volume of $17,731 million in 2023.
And while there’s no doubt that COVID-19 has strained the economy and dealt a blow to the vacation rental industry, according to a new report from Hostfully, it’s poised to make a big comeback in late-2020. Especially in popular regions like Florida where domestic travel is already flourishing and generating revenue at near-2019 levels for vacation rental owners.
Seems like a no-brainer, right? Well, it can be.
While turning a secondary home into a source of income via vacation rentals can be seriously beneficial for homeowners, it isn’t without its challenges for insurers. Since vacation rentals are, by definition, a short-term arrangement, they can often be left unoccupied for long periods of time. As a result, homeowners need to be extra diligent in how they go about protecting their properties.
But do they have the right tools to do so? As an insurer, are you helping them proactively prevent losses for the most common risks?
Take water damage. From ruining drywall to staining carpets, water damage is never a good thing. But if left untreated, even a small leak can cause thousands of dollars in damage.
Homeowners who rent out their property as a vacation rental are at even higher risk. Depending on how often they visit the property, it could take days or even weeks before water damage is discovered, at which point it may have caused wood rot, dangerous mold, and even damage to the foundation.
Although less frequent, the same is true for fire. While smoke alarms play a critical role in alerting occupants of a potential fire, if no one is there to hear it, how can vacation rental owners know if there’s a possible threat?
Luckily, with the advent of smart home technologies, vacation rental owners now have tools at their disposal to monitor their property (along with any issues that arise) without having to physically be there.
But as an insurer, you don’t just have to rely on homeowners to buy this technology. As a carrier or agent, you have the ability to provide this value directly to your customers. How exactly? Well, a great option is to partner with a company like Notion, the leading partner for smart property monitoring in insurance.
Notion’s mission is to help de-risk a property and reduce the complexities of property ownership. Through partner programs, Notion helps insurance carriers, agents, and service providers drive customer acquisition, increase engagement, reduce claims, and more.
Notion’s DIY monitoring system, powered by multifunctional sensors and an app, enables property owners can see the current home activity, set notifications for different alerts (including water leaks, sounding alarms, temperature changes, and more), and, with IFTTT, augment the push notifications with text, email, and phone call alerts.
Notion works directly with insurers and agents to provide a discounted or complimentary kit at the time of a new policy, renewal, or water claim.
This makes it really easy for vacation rental owners to detect and react to potential problems quickly – even if they’re on the other side of the country. But what makes Notion particularly suited to vacation rentals is that it’s less invasive than other smart home monitoring technologies.
Privacy is, understandably, a major concern among vacation rental goers. As such, installing surveillance tools like cameras and noise monitors are pretty much out of the question (and in some cases, illegal).
Notion, on the other hand, doesn’t use cameras or record audio, meaning that vacation rental owners can remotely monitor activity without having to review or look at any footage.
This safeguards the privacy of their guests while ensuring the protection of their property – a win-win to be sure.