Many vacation-rental business owners believe they can rely on their standard homeowners or landlord policy for protection. While these policies provide property and liability coverage, they typically exclude business activities. Find out why this important in today's blog post!
Did You Know:
An estimated 600,000 homeowners in the United States earn extra income by renting out their homes on a short-term basis?
Many vacation-rental business owners believe they can rely on their standard homeowners or landlord policy for protection. While these policies provide property and liability coverage, they typically exclude business activities, which means liability claims arising from rental activity will most likely be denied.
The insurance industry offers options that range from liability-only coverage through online-booking sites to comprehensive property and commercial general-liability coverage. But with several options available, it can be difficult to know which option is best.
"If you don’t buy insurance for your vacation-rental property, you’re not a business person, you’re just playing games."
When choosing insurance for your short-term vacation rental, make sure coverage is available and appropriate for the exposure. Some policies won’t cover the risks associated with home sharing, for example, but are ideal for whole-house, short-term rentals.
Keep in mind that as soon as a home is advertised as a vacation rental, the home becomes a place of business, and the risk to the property and exposure to liability claims substantially changes. At minimum, a vacation rental should be protected by an insurance policy that includes property coverage and commercial general liability (CGL), as well as business-income coverage. CGL insurance provides protection against claims arising from your business operations, as well as advertising and personal-injury liability. Business-income coverage provides financial relief while your property is being restored after a covered loss.
Source: Tony Melillo, Sales Manager, CBIZ Vacation Rental Insurance
Read more industry thoughts from Tony Melillo and Travel Channel's Hotel Impossible TV Show Host, Anthony Melchiorr in a recent USA Today Article:
Purchasing vacation rental insurance designed specifically for vacation property owners can give you the insurance protection you need, covering both property damage and liability risks. Find out more about how CBIZ Vacation Rental Insurance can protect you from the risks you face when renting your property. Request a free quote today!
This blog may contain scenarios that are provided as examples only. In an actual claim situation, coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.