Owning a vacation rental property is an amazing way to pad your income while also reaping the rewards of being able to enjoy a home away from home. This said, you need to protect your property so it doesn’t end up costing you more than it makes you—and standard homeowner’s insurance isn’t going to cut it when it comes to coverage.
If you own a property and intend to rent it out, you’ll need to consider vacation rental insurance.
Why?
Because your secondary property becomes a business venture, and business coverage and home coverage address very different needs.
Let’s look further into vacation rental insurance, including why you need it, what you need, and how to get it.
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No, vacation rental property insurance is designed specifically for property owners who plan to rent their property to paying guests, but may also occupy the home themselves at various points throughout the year. Or, it may sit empty.
As such, vacation rental property insurance has to cover situations a conventional homeowner may never encounter. The coverage needs to be more flexible, but also needs to be robust enough to protect against unexpected accidents due to the fact your property will be a temporary home to many people.
The optional rental riders that some homeowners’ policies offer can be problematic since they facilitate occasional rentals and limited property and liability coverage. However, many vacation properties have guests regularly, not just sporadically, so under the “occasional” conditions set out under a homeowners policy, almost any claim could be denied. Your claim is subject to your provider’s interpretation of what constitutes “occasional”.
So, if you rent your vacation property frequently, then you need to consider it a business venture—a business venture that needs a business solution. Namely, vacation rental insurance.
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Whether it’s your second home that you plan to rent out or a home you purchased with the sole intention of renting out, it’s easy to get vacation rental home insurance.
Just contact us for a free comparison quote. We’ve curated a list of the top providers who boast the best prices, excellent customer service, easy-to-file claims, and transparent policies. When it comes to vacation rental insurance, it doesn’t get much better than this!
No, your vacation rental insurance plan is designed to stand alone, and can therefore replace your other policies.
Yes. Landlord insurance and homeowners insurance has significant gaps in coverage. For instance, a homeowners policy is created for a property where the owner will be there, to take care of it, most of the time. A landlord insurance plan is created to cover the singular circumstances of having tenants live on your property most of the time.
A vacation property will have more people passing through its doors, and may not be occupied for certain times during the year. As such, it has special coverage to more fully protect you.
Nope! The best vacation rental home insurance is comprehensive, so it will provide your property the coverage it needs whether it is vacant, being used by you, or a renter.
Just request a free comparison quote here. We’ll hook you up with competitive quotes from the best vacation rental home insurance providers that will suit your needs and your budget.
You could, but you may not want to since all the properties would share the same liability limit—and you may require more coverage than that.
Once you’ve got your quotes, speak with carrier representatives to see what the best option would be for you, and your properties.
Hollay Ghadery Hollay Ghadery is a writer and editor who is passionate about financial literacy as a means to personal fulfillment. Hollay has over 18 years of experience creating content about a range of topics related to personal finance, including insurance, investing, banking, and credit cards. When Hollay isn't writing, she's spending time with her four children, two dogs, and three goats.
