Vacation Rental Insurance: Do You Need It?

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.

Free Home Insurance Comparison - Save up to 30%

No junk mail. No spam calls. Free quotes.

No Signup required

Vacation Rental Insurance for Owners

It doesn’t matter if you’re only renting part of your home or all of your home—or if it is your primary residence or a second home—you need vacation rental insurance for renters. The type of policy you will require depends on your unique situation, but regardless there are four types of insurance to consider.

Contents coverage: This kind of vacation rental insurance coverage will compensate you in the event any of your belongings on or in your property are stolen or damaged. A word of warning, however: contents coverage does not always cover certain items, like a boat or an ATV, so check with your provider to ensure you’re getting the coverage you need.
Liability coverage: Protect yourself from hefty legal fees if your renters or anyone else on the property is harmed on your premises. Liability insurance also covers some money for medical bills.
Lost income coverage: This coverage exists to reimburse you if your property is damaged to the extent that you can’t rent it for a period.
Structural coverage: If your home is destroyed or damaged, structural coverage will provide financial support.

Vacation Rental Home Insurance Policy Types

There are several kinds of vacation rental insurance. Peruse the policy types to get a handle on which one will work best for the unique needs of your property.

Pay-per-use home share insurance: This is a type of short-term vacation rental insurance wherein homeowners maintain their regular homeowners’ policy, and just pay for a per-night fee when there are paying guests on the premises. Obviously, this is ideal if you will only be renting out your property infrequently. Otherwise, these individual bouts of coverage can really add up.
Vacation rental insurance: Vacation rental insurance policies are fairly new and cover your home when you are in it and when guests are there, thus replacing your existing homeowners or landlord insurance.
Vacation rental service provider-provided coverage: Vacation rental services like Airbnb and Home away offer fee-based or free coverage to homeowners who rent out their properties through them. Just keep in mind that since these policies are often secondary coverage, you’ll need to submit a claim via your primary policy first.
Homeowners insurance + rental rider: A rental rider on your existing homeowner’s insurance adds coverage for homeowners who want to rent their homes out. Not all providers will offer this option, so be sure to speak with a representative if you want to pursue a rental rider with your existing insurance company.
Homeowners insurance + landlord insurance: You can also insure your vacation property with both homeowners and landlord insurance. The homeowner’s insurance will cover the premises when you are there and the landlord insurance will cover your property when you’re not.

Free Home Insurance Comparison - Save up to 30%

No junk mail. No spam calls. Free quotes.

No Signup required

Benefits of Vacation Rental Insurance

The most obvious benefit of vacation rental insurance is the peace of mind it provides. You can rest easy knowing that if anything happens to—or on—your property, you won’t be left paying substantial expenses out-of-pocket. Of course, you have to make sure you get the right vacation rental insurance for renters, so you’re properly covered. We can help! When you get a vacation rental insurance policy through our free comprehensive quote, we make sure you get the best plan for your needs. Here are some of the biggest benefits of getting vacation rental insurance through our providers:

It’s easy to get. Whether you add to your existing homeowner’s policy or get an entirely different plan through a free quote, getting vacation rental insurance is simple.
It’s easy to use. Most providers will allow you to file claims quickly and easily online—even with same-day resolution in some instances.
Get comprehensive coverage. Our top insurance companies will tailor their coverage to your needs, so you only pay for what you truly need.
We’ve curated vacation rental insurance from the best providers in this niche who also give the most competitive rates.

Is Vacation Rental Insurance and Homeowners or Rental Landlord Insurance the Same Thing?

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.

Free Home Insurance Comparison - Save up to 30%

No junk mail. No spam calls. Free quotes.

No Signup required

What's the Cost of Vacation Rental Home Insurance?

Good question, but also, a question that’s difficult to answer definitively. There are too many variables that can impact the price of your vacation rental insurance, including:

Your deductible
Your coverage
The replacement cost of your home
Your location
Your amenities

Here’s a generalization we can make, however: vacation rental insurance plans tend to cost more than regular homeowners insurance. The reasons are simple: the home sits empty more than a regular home (and is, therefore, more likely to incur theft or damage) and because it is occupied by renters (who are more likely to sue for a slip or fall), claims are more frequently submitted. Make sure you save money when you can. To get the best price on your vacation rental insurance, request free compare quotes from our top carriers now.

Here's How to Insure Your Vacation Property

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!

FAQ

Do I need my homeowners or landlord policy if I have a vacation rental insurance plan?

No, your vacation rental insurance plan is designed to stand alone, and can therefore replace your other policies.

Do I require a vacation rental insurance plan for my property if I plan to rent it?

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.

Should I have two separate policies: one for when I’m renting my property and one for when I’m not?

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.

How do I purchase vacation rental insurance?

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.

Am I able to insure more than one vacation rental property on the same policy?

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.