If you’re like many hotel owners, your business is your life. You run a busy hotel, and you love what you do. What might happen, though, if a fire were to break out and damage your property? How would you manage the repairs and the loss of business during those repairs? Situations like these call for hotel property insurance.
What Is It?
Hotel property insurance essentially covers the building itself. Because the property can often be the most expensive asset involved in running a hotel, it’s important to protect it. You’ll want to take out enough insurance to cover the cost of a full rebuild. While many people try to lower their premiums at the outset, ensuring that you have enough coverage for a full rebuild will help in the event something terribly tragic happens. As you work to come up with the right amount, there are several spaces you might want to consider. If you have outbuildings like sheds, a gym facility for guests, or even a pool, you may want to factor that in. Likewise, you’ll want to consider your boundary walls, and fitted kitchens or bathrooms you have, or any children’s play surfaces you may have outside for guests.
Hotel property insurance will certainly take care of you in the event of a tragedy, but it only covers damage to the structure, not what was inside. Often you’ll want to add contents insurance to the package as well. That will help to pay for anything that is inside the hotel at the time of the fire or another damaging event. For example, imagine having to foot the bill to replace all of the televisions in the guest rooms if your hotel were struck by lightning. That could easily bust your budget for the entire year. If there were a fire, contents insurance would replace the furniture, the televisions, and anything else that would need to be covered. You can even choose an equipment insurance add-on to help cover the cost of your electronic equipment inside the building or your groundskeeping equipment outside the building.
Contents insurance isn’t the only add-on you may want to consider, though. Business interruption insurance can help keep your hotel afloat during the repairs. It will pay the rent, the mortgage, the wages, and the other bills if something stops your business in its tracks. This is a pretty natural add-on because many hotel owners would really struggle to pay those bills if something tragic happened. Often it will cover those costs for up to 24 months, which would give you enough time to handle debris clearance, planning, and the rebuilding phase for your hotel.
Every hotel is different, but every single one of them needs a hotel property insurance plan to help protect it. As you shop, make sure you factor in all of the potential damage a real tragedy could do to your company.