Renting a condo or house for a vacation often offers perks such as cooking facilities, more space, and greater freedom to do as you please. However, an important consideration is whether your personal belongings are protected in your vacation rental unit.
What happens if something is stolen, damaged, or lost? What if someone visits you and hurts themselves within your rented space? Are you covered under other insurance policies you might have, or not? Let’s take a look at what you should consider to protect you, your loved ones, and your belongings.
Do You Have an Existing Homeowners Insurance or Renters Insurance Policy?
Your existing policy could help you if something untoward occurs while you’re on vacation. In particular, your personal property and liability coverages might come into play.
Personal property coverage protects your belongings against the losses mentioned in your policy, up to a limit. This limit can be lower than normal if your loss occurs away from home. However, your policy usually wouldn’t cover damage to the rental property itself, unless cause by specific perils such as fire or explosion. This totally depends on the wording in your policy.
Additionally, your personal property coverage may not apply to recreational items such as watercraft or a golf cart. These require an additional rider or a separate policy.
Your renters insurance or homeowners insurance could also provide liability coverage if someone’s injured on your rental property. This can help pay for legal and medical bills if you’re deemed at-fault.
Does the Owner Have Insurance?
If you’re renting privately, it is important to understand what insurance coverage the owner has. A homeowners insurance policy may offer liability coverage on paper, but may not if the owner rents out their property for more than a few days a year. Every policy differs.
If they do have coverage through their homeowners or renters policy it protects the home and other structures on the property against the perils mentioned in the policy. These usually include fire, lightning, smoke, wind damage, and more. Their insurance policy would cover the damage, providing the loss was not your fault.
However, renting a property from a host without proper insurance is risky. Should you or one of your visitors injure themselves on the property, their insurer may deny a claim. Hosts should carry short-term or seasonal rental insurance if their homeowners or renters policy does not provide sufficient coverage.
Agencies such as Airbnb or VRBO automatically include hosts under their policies. Generally, they’re meant to protect the host from the costs involved if guests damage their property. However, these policies may offer liability coverage if a guest or third party is hurt, providing the injury is directly related to the property.
Your vacation should be carefree and enjoyable. If you don’t know whether your homeowners or renters insurance offers sufficient protection while you’re away, give us a call. We’ll review your policy and let you know if you need to close any insurance gaps. You deserve total peace of mind during your holidays.