Navigating insurance challenges for Short Term Rental properties in Maine’s booming vacation market

By Tricia Zwirner

Maine has long been a cherished vacation destination, known for its rugged coastline, picturesque lighthouses, charming small towns and abundant natural beauty. In recent years, the surge in popularity of Short Term Rental (STR) platforms like Airbnb and VRBO has transformed the state’s vacation property market. Homeowners across Maine are increasingly capitalizing on this trend by renting out their properties to visitors seeking authentic, local experiences. While this boom presents lucrative opportunities, it also introduces unique insurance challenges that STR owners must navigate carefully to protect their investments and mitigate risks.

The Rise of STRs in Maine

Maine’s tourism industry is thriving, with millions of visitors flocking to the state each year. Many travelers prefer the comfort, privacy, and local flavor of STR homes over traditional hotels. This shift has encouraged many Maine homeowners, from coastal cottages to mountain cabins, to enter the STR market. The financial incentives are clear: STRs often generate higher income than long-term leases, or leaving a property vacant.

However, this growing market segment comes with complex insurance needs that differ significantly from those of traditional homeowners or landlords. Understanding these nuances is critical for property owners, insurance agents, and brokers alike.

Coverage Gaps in Traditional Homeowner Policies

One of the biggest challenges for STR property owners is that most standard homeowner insurance policies do not adequately cover the risks associated with renting out a property on an STR basis. Many policies explicitly exclude coverage for commercial activities, including STRs, or limit coverage if the property is rented for fewer than 30 days.

This means that if a renter causes property damage, or if a guest is injured on the premises, the homeowner’s insurance may deny claims related to the rental activity. The financial consequences can be severe, including out-of-pocket repair costs, liability claims, or even legal expenses.

Increased Liability Exposure

STRs inherently carry higher liability risks compared to owner-occupied homes. The frequent turnover of guests increases the likelihood of accidents, property damage, or negligent behavior. Common risks include slip-and-fall injuries, fire hazards from unfamiliar appliances, pet-related incidents, and damage caused by parties or over-occupancy.

Additionally, STR owners may face liability claims if guests injure themselves or others, or if their personal belongings are stolen or damaged during a stay. Without proper insurance coverage tailored to STRs, owners could be financially vulnerable.

Specialized Insurance Solutions

Recognizing the unique risks of STRs, many insurers have developed specialized insurance products designed specifically for this market. These policies typically offer broader coverage than standard homeowner’s insurance, including:

• Protection for property damage caused by guests

• Liability coverage for guest injuries and property damage to third parties

• Coverage for lost rental income due to covered damages or cancellations

• Optional coverage for contents and personal belongings used in the rental

Some insurers also provide STR endorsements that can be added to existing homeowners policies, bridging the coverage gap without requiring a separate policy.

For Maine property owners, working with an insurance agent knowledgeable about STR insurance is essential. Agents can help assess risks, recommend appropriate coverage limits and find policies that comply with lender requirements.

Risk Management and Best Practices

It’s recommended Maine STR owners adopt proactive risk management strategies to reduce the likelihood of claims:

• Screen Guests Carefully: Use platform tools and personal vetting to select responsible renters.

• Maintain the Property: Regular inspections and upkeep of safety features like smoke detectors, fire extinguishers, and secure railings reduce accident risks.

• Clear House Rules: Establish and communicate rules about noise, occupancy, pets and use of amenities to prevent damage and nuisance complaints.

• Emergency Preparedness: Provide guests with clear instructions for emergencies and contact information.

• Documentation: Keep detailed records of property condition before and after rentals and document any incidents promptly.

Conclusion

Maine’s booming STR market offers exciting opportunities for property owners to generate income and share the state’s charm with visitors. However, it also introduces complex insurance challenges that require careful attention. Traditional homeowner’s insurance often falls short in covering the unique risks of STRs, leaving owners exposed to potentially significant financial losses.

By understanding these risks, seeking specialized insurance products and implementing sound risk management practices, Maine STR owners can safeguard their investments and enjoy the benefits of this dynamic market. Insurance professionals play a vital role in guiding clients through these complexities, helping to create a more resilient and prosperous STR industry across the Pine Tree State.

Tricia Zwirner is a State Farm agent celebrating her 22nd year in Windham. She and her team would love to hear from you and can be reached via phone and text at 207-892-2864 or via email at tricia@TRICIAZWIRNER.com. <

Remodeling Is Green Building

By Warren O’Shea

In most cases, renovating an existing house can be considered more environmentally friendly than building a new "green" house, even when that new construction incorporates sustainable elements.

I was once fortunate enough to be privy to a conversation between a crusty remodeler and a “Green Products” vendor at a trade show. The vendor was advertising all the benefits to the environment (and humanity) that their products provide. Save the planet, think of the children, healthy lifestyle, save money etc. We all know the buzz words, and it sounds great - who doesn’t want those things? And who wants the guilt of feeling personally responsible for the demise of our beautiful blue marble? I’m all in!

Enter Mr. Crusty.

Like standing next to a bullet train of words, he unleashed his rebuttal. All I could do was stand in amazement as this unassuming and aged man opened the institutional sized, #10 can of whoop-ass and fed it to the vendor by the shovel full. I could begin to quote the exchange, but only in fear of being banned from this wonderful newspaper.

With the help of AI wizardry and some Google searches the following is what he was effectively trying to portray to the vendor.

 
Embodied Energy: Existing buildings already represent a significant investment of embodied energy, which is the energy used in the extraction, manufacture, transportation, and construction of all the materials that went into building it. Tearing down an existing structure to build new essentially throws away this embodied energy and requires using even more energy and resources for new materials and construction.

 
Reduced Waste: New construction generates significant waste: Demolition of existing structures and the construction process itself produce considerable amounts of waste that often end up in landfills.

 
Repurposing Structures: Renovating allows for the reuse and repurposing of existing structures and materials, significantly reducing waste. For instance, one calculation suggests revamping an older house instead of building new saves the carbon equivalent of 93 cars driving for a full year.

 
Material Conservation: Renovations often involve reusing materials like bricks, timber, and steel, which conserves natural resources that would otherwise be used to create new materials. This aligns with a circular economy, promoting continuous reuse and recycling of materials.

 
Time to Offset: While new green homes are designed for efficiency, it can take years – even decades – for the energy savings of a new energy-efficient building to offset the high upfront environmental impact of its construction. Studies have shown that it can take 10 to 80 years for a new energy-efficient building to catch up with an older, energy-retrofitted building in terms of climate impacts.

 
Resource conservation: New construction depletes natural resources: Building new requires extracting and processing raw materials like timber, metals, and minerals, which can lead to deforestation, habitat destruction, and resource depletion. Renovation, on the other hand, conserves resources: By repurposing existing materials, renovations reduce the demand for virgin resources and the associated environmental impact.

 
Faster project completion and cost savings: Renovations are often faster and potentially more affordable: Adaptive reuse projects can be completed quicker and potentially at a lower cost than building new, particularly if the existing structure is sound and reusable. In essence, the "greenest" building is often the one that already exists, especially when renovation efforts focus on energy efficiency, waste reduction, and the use of sustainable materials. Ultimately, the most environmentally sound choice depends on various factors, including the condition of the existing structure, the scope of the project, and the commitment to sustainable practices during both renovation and potential new construction. As eco-consciousness continues to rise in popularity with consumers, the building industry has birthed a slew of sustainable vendors – and some that just aren't.

Let the buyer beware: The green living magazine “New Life Journal” suggests that home renovators do some investigating before jumping at a green price tag. A lot of products marketed as green due to their energy efficiency ratings may use less electricity than some of their counterparts on the market but may also be constructed out of wholly unsustainable materials or made in environmentally harmful ways. What may appear green might not be green at all. This is a marketing ploy known as “Greenwashing.” I don’t know if Mr. Crusty had heard of the term before but he sure knows what it is.

Warren O'Shea is the owner of O’Shea Builders LLC, Maine’s most award-winning remodeling contractor. He has 35-plus years of residential remodeling experience. He is a certified home inspector and has been featured on HGTV, Food Network, and Maine Cabin Masters. He is a recipient of the Portland Police Department’s “Citizen Award,” and is a staunch consumer advocate. Warren has, and continues to, co-author articles for nationally distributed trade magazines. < 

Commercial Real Estate is also a people business

By Larry Eliason

As a Commercial Real Estate Broker, my FOCUS is to provide my clients with sound Commercial Real Estate advice. I specialize in Sales and Acquisitions Representation for Sellers and Buyers and Commercial Real Estate Leasing Representation for Landlords and Tenants.

As a Seasoned Maine Licensed Real Estate Broker, I have developed a diverse set of skills by accumulating years of experience that include Sales and Marketing, Contract Negotiation, Due Diligence, Planning and Approval Process, Commercial Real Estate Financing and Commercial Broker Opinion Valuation to name a few.

I wanted to provide some basic Commercial Real Estate Terms to help Sellers, Buyers, Landlords and Tenants better understand what Commercial Brokers are looking at as far as Income, Expenses, Cash-Flow and Return on Investment in addition to the physical nature and condition of Commercial Real Estate.

Gross Potential Rent is calculated by taking the market rent of every unit on the property and adding them up. It is the maximum amount of money your property could make if it was 100 percent occupied, and every unit was making market rent.

The Vacancy Rate is a numerical value calculated as the percentage of all available units in a rental property, such as a shopping center or business park, that are vacant or unoccupied at a particular time.

Gross Operating Income refers to the result of subtracting the credit and vacancy losses from a property's gross potential income. GOI is also sometimes known as Effective Gross Income (EGI).

Repairs and Maintenance are the costs incurred with a real estate asset operating at its present condition. If a commercial building requires repairs, the cost to repair the damage is debited to repairs and maintenance expenses.

Reserves for Replacements is an amount of money set aside in anticipation of building components or equipment like HVAC wearing out in a relatively short time and needing to be replaced. Replacement reserves can be a mere accounting entry as a phantom expense item reducing net operating income each month, or it can be money deposited into an account and earmarked for replacements.

Property Management Fee is the operation, control, oversight, and accounting of real estate investments. Management is needed to monitor the property and offers accountability for collecting rents and reviewing expenses as they come along.

Net operating income (NOI) is a calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.

The Return on Investment (ROI) or cash on cash return is a commonly utilized investment measurement in the real estate industry. Return on investment is calculated by taking the monthly or annual cashflow of an asset and dividing it by the total amount of money you invested into a property.

The Return on Equity (ROE) is a measurement of investment returns. ROE considers your total equity, including equity that has built up over time, and measures your cash-on-cash returns against that instead of your initial investment.

The Income Capitalization Rate, also known as the commercial real estate cap rate, is the rate of return used by Commercial Real Estate Investors to assess the risk and potential return of a property. Cap rates are usually expressed as percentages such as 10 percent as a return on investment using debt and equity. When comparing investment properties, capitalization rates are a commonly used benchmark for measuring returns.

As much as Commercial Real Estate is to review income and expenses, analyze leases and crunch the numbers to evaluate risk and determine return-on investment, Commercial Real Estate is also a people business. I believe that success in this industry is earned over time by building long-term relationships and being a valuable resource to your clients.

My service area is the Greater Sebago Lakes Region. I do go where a client needs me to travel sometimes, hours away from my home base. In the Greater Sebago Lakes Region, the property may be zoned commercial, however, it could also be a residentially zoned Multi-family or an Income Producing Property with Lakefront, a Sales and Service business like a Marina, a Waterfront Campground or other 4 Season Property with Lakefront amenities.

If you are looking to Sell, Buy or Lease Commercial Real Estate, I would greatly appreciate the opportunity to help you meet your Commercial Real Estate Goals.

Larry Eliason, Commercial Broker, Butts Commercial Brokers, 1265 Roosevelt Trail, Raymond, Maine 04071. Cell: 207-415-2112 / LarryEliasonBCB@gmail.com www.ButtsCommercialBrokers.com <

Benefits of using the right photographer when you sell your home

By Richie Vraux

Why do you need a professional real estate photographer when selling your home?

A real estate photographer is a professional who takes photos of property to showcase them in the real estate market. Choosing the right photographer when selling your home is imperative to getting the buyers to see all the many features about your home.

A few of the most common job responsibilities include:

* Have the photographer meet with potential clients before entering into a contract with them to ensure their style meets the clients’ needs. Many real estate photographers often build relationships with agents and know what to expect from them. Most of these photographers will also edit their pictures to make sure they are vivid and bright.

* Companies that use Dynamic Visual Content can increase traffic by 403 percent, close transactions up to 31 percent faster and increase sales prices by up to 9 percent. It is right to choose the right agent that has all the latest tools to sell your property in a timely manner.

* A professional real estate photographer will need to invest in a broad range of lenses and lighting for the perfect lighting in every property and what works best. Once they have the right camera and editing software, the right tools can make the difference in taking the right shots every time. There are different times during the day that a professional will change his/her lenses to capture the light you are looking for. For instance, a professional would need to change settings or light bar to capture the right shots at dusk like so many photographers do.

* Visual tours and 3D virtual tours. 49 percent more qualified inquiries come from 3D virtual tours floor along with aerial drone and video still shots make a huge difference when showing the best features. A floor plan showing room measurements and dimensions placement are really important to buyers so they know “Can I fit my 72-inch TV on this wall, and will grandmother’s huge hutch fit on that wall?”

Buyers want to see as much information prior to visiting the property and the way to do that is with visually compelling images that will attract your buyers. Visual twilight enhancement is a great way to grab a buyer’s attention.

Exterior photos of a home are usually the first photo a buyer sees in a home listing. Showcasing a home’s curb appeal with a well-captured photo sets the tone for potential buyers to want to see more and view the interior photos. But there’s no rule that says the first listing photo requires a photo of the home's exterior. Choose the photo that will capture a potential buyer’s attention and make the home truly stand out.

If the home is on the lake, has a spectacular backyard and garden or a fantastic kitchen and dining area, you can always place that photo at the start of a real estate listing to draw interest from the public. But make sure that a photo of the exterior is included in the listing photos. You also want to make sure you've included at least one photo of every room in the home up for sale. For significant rooms such as the living room, kitchen, or bathrooms, it may be helpful to have multiple photos from different vantage points to show the entire space and expanse of those rooms.

Many experienced real estate photographers will showcase multiple photos of each room in a home from different angles and perspectives. They also can frame the room in such a way as to highlight a home’s most desirable features or to minimize unfavorable aspects.

In closing, utilizing photography to sell your home is always a practical way to lure buyers to want more information about your home.

Richie Vraux is a seasoned real estate professional with over 25 years’ experience. Pine Tree Realty of Maine, 76 Tandberg Trail, Windham, Maine. 207-317-1297.

Email: richardjvraux@gmail.com RichardVraux.PineTreeMe.com <

How pets influence the buying and selling process

By Nicole Foster, Broker/ REALTOR

Maine consistently ranks as one of the most dog-friendly states in the country, with more than half of Maine households owning at least one pet, it’s clear that “The Way Life Should Be” means owning pets. Our state offers an abundance of pet-friendly spaces and opportunities for outdoor adventure. Acadia National Park is one of the few national parks in the U.S. that welcomes leashed dogs on most of its carriage roads, trails, and campgrounds. In Portland, the 85-acre Fore River Sanctuary is a local gem, offering off-leash access for dogs under voice control, miles of shaded trails, and even the city’s only natural waterfall – a favorite spot for dogs to splash and cool off. Whether you're in the mountains, the woods, or along the coast, Maine is a place where pets truly feel at home.

Right home for your pet

Buyers are significantly less motivated to make a strong offer on a property that doesn’t suit their pet’s needs. Even if they do submit an offer, it’s often less competitive—and they may be less emotionally invested in the outcome—if the home doesn’t accommodate every member of the family, including their pets.

For many homeowners, pets aren’t just animals, they’re beloved members of the family. It’s not uncommon for decisions about remodeling or even relocating to be influenced by the needs of their furry companions. Whether it’s adding a fenced-in yard, creating a mudroom for easier cleanup, or finding a home with better access to walking trails, pet-friendly features can be a major driving factor in both home improvements and real estate choices.

For many of today’s buyers, especially pet owners, proximity to pet-related services can be a key consideration. Knowing how close a home is to a trusted veterinarian, groomer, dog park, kennel, pet supply store, or even dog-friendly trails and beaches can significantly influence their interest in a property. Just as important are the features inside the home that make daily life easier for both pets and their people. A fenced-in yard offers peace of mind and freedom for dogs to roam safely, while a mudroom provides a practical space for wiping paws and storing pet gear. Flooring choices also matter—durable, low-maintenance materials like concrete, tile, or laminate tend to be more pet-friendly and appealing than surfaces like carpeting or hardwood, which are more prone to damage and wear.

In the rental market, pet-friendly units are in especially high demand. Listings that allow pets typically receive more online views, saves, shares, and applications, and they’re often rented out faster than those with strict no-pet policies. With such a large portion of renters owning pets, offering a pet-friendly space can significantly widen your applicant pool. It also helps foster longer tenancies, as renters with pets tend to stay put longer due to the limited availability of suitable housing. For landlords, this can mean reduced vacancy rates, more stable rental income, and less turnover-related cost in the long run.

When you purchase a home using financing, securing a homeowner’s insurance policy before the closing date is a requirement. If you’re a pet owner – especially one with a dog – it’s important to check with your insurance provider to confirm whether your pet’s breed is covered under their policy. Some insurers have restrictions or exclusions for certain dog breeds and failing to address this in advance could delay your closing or limit your coverage. If your current provider doesn’t cover your pet, you may need to shop around for a policy that does. Taking the time to verify this detail early on can save you from unexpected surprises at the final hour.

Preparing to Sell Your Pet’s House

Ask a trusted friend or family member to stop by and give your home an honest “sniff test.” We often become nose-blind to the everyday smells of our own pets, but a fresh set of senses can help identify any lingering odors that might turn off potential buyers. Resist the urge to mask smells with heavy fragrances or air fresheners – buyers will see (and smell) right through it, which can create feelings of mistrust. Instead, take a transparent and proactive approach: address any pet-related damage head-on. That might mean hiring a professional cleaner, replacing soiled flooring, treating subflooring, or even removing sections of drywall if odors have deeply permeated the space. A clean, neutral-smelling home gives buyers confidence and allows them to focus on the property’s potential—not its past.

Before showings, make sure all pet hair is thoroughly removed from upholstered furniture, rugs, and other soft surfaces. Even buyers who love animals may be turned off by signs of shedding, especially if they have allergies. Take the extra step to vacuum thoroughly, use lint rollers, and consider having upholstery professionally cleaned if needed. It’s also best to make arrangements for your pets to be out of the home during showings—whether with a friend, at daycare, or on a car ride. This helps create a calm, distraction-free environment where buyers can fully focus on the home, not the pets.

Nicole Foster is a real estate broker with over 20 years of experience and a Windham parent who loves real estate and people. <