Things to know before buying vacation rental insurance
It’s important to do some research on vacation rental insurance when insuring your vacation rental. Vafion is a hospitality technology partner and has been helping organizations in implementing the same. Have a read on a thing or two you should know about vacation rental insurance. The Vacation rentals do not strictly fit into any one standard insurance category, it will be challenging to find insurance for short-term rental properties. Short-term renting is considered as a business activity, the regular homeowner’s policy does not get covered during this renting period. Moreover, only personal liability is covered as a part of a homeowners policy. When we rent out a property then it is considered as the commercial liability.
Personal liability coverage will not respond to business activities, such as charging money for someone to stay at your vacation rental. Instead, personal liability is intended to cover us in the event that someone claims that we have caused them bodily injury or damaged their property as a result of your personal actions. What businesses carry and what we need for our vacation rental business is commercial liability coverage (business liability). This is because commercial liability is specifically designed for business activities like your vacation rental and therefore, does not exclude coverage for such things. But the catch here is if the owner himself stays in his vacation rental property then the insurance will not be covered during the period of his stay.
There are also cases where the owner can rent out a room or part of his house for vacation rental business during that time both Owner’s address and his rented out property will be the same. But there are options to cover both of them separately. In this case, the Owner can get a homeowner’s policy for the room or for the part of the house he stays in and gets the commercial liability insurance for the part of the house or the room he has rented out. Also since many vacation rental properties are located near water bodies it’s wise to take natural disaster insurance as add-on insurance.
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