Vacation Rental Insurance: Are you Covered?

Vacation Rental Insurance: Are you Covered? from

.Vacation Rental Insurance: Are you Covered? from

Whether you’re renting a property as a serious source of income or just as a side hustle, it’s important that you have the right insurance policy to cover any damages that might occur. As running a vacation rental is a business activity, your usual homeowner’s policy or landlord’s policy won’t be valid for the times you rent your property out for short-term stays.

Luckily, many insurance policies are specifically designed for short-term rental properties these days and most providers will allow you to easily add a short-term rental policy to your usual home insurance plan. 

Here’s what you need to know about vacation rental insurance. 


What should your vacation rental insurance cover? 

What’s the difference between vacation rental insurance and homeowner’s insurance? The answer is the degree of coverage as well as what areas are covered. 

There are three main categories you should look at when determining what coverage you’ll need for your rental property: 


  • Liability: Without liability insurance, your guests could potentially sue you for any injuries or accidents that happen on your property. This is true even if it doesn’t seem like you’re at fault. General liability insurance protects you and your assets in the event of an unforeseen disaster resulting in injury. 
  • Property Damage: For serious property damage caused by renters or natural disasters, many hosts would be out of luck without property damage insurance. Make sure that the insurance policy you choose covers your entire property, including decks, sheds, and other structures that might be set further away from the house. 
  • Loss of Income: Your property is considered a business expense, so if damages prevent you from renting it out, you’ll need insurance to cover the loss of income. You may be able to be compensated for the time that you miss out on renting due to repairs as well as the repairs themselves. 


With a comprehensive insurance package, you won’t have to worry about things going awry when you rent out your property. It’s almost always worth the investment if you’re serious about vacation rental hosting. It’s much cheaper to pay for insurance than it would be to pay for damages or lawsuits that might occur without it. 


Vacation Rental Insurance Providers

It’s easy to find a trusted name when it comes to vacation rental insurance. Many of the big-name insurance providers now offer homeshare or short-term rental insurance policies. Here are a few to consider: 


The insurance provider you choose will depend on your individual rates as well as what feels best for you. It’s a good idea to shop around and see how the policies differ before committing to one. Don’t just go with what’s familiar; the insurance provider you’ve used for auto insurance in the past might not necessarily be the best choice for your vacation rental insurance. 


Overall, an airtight vacation rental insurance policy will save you a lot of time and hassle if something goes wrong during a guest’s stay. You can rest easy knowing that your property is covered, no matter what life (or a guest) throws at you. 


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