Renting out your primary home to travelers who prefer vacation rentals over local hotels can be a great way to supplement your income.
You don’t necessarily have to be located in a top travel destination to do so, either. While engaging in the vacation rental business can be rewarding, unfortunately, occasional unforeseen events can result in property damage, even if you’ve taken safety precautions.
When you rent out a cabin or second property, damage can be a nuisance but at least you can still reply on your primary residence to live in while repairs are completed. But what happens when that damaged vacation rental property is also your primary home? Chances are, your homeowners policy excludes business activities, so you may not have the coverage you need. CBIZ vacation rental insurance is custom designed to protect your vacation rental home and business to ensure your losses and extra expenses related to the damage are covered.
Vacation rental insurance covers most losses sustained while your home is rented out, including most damage caused by guests. Sometimes, guests on vacation in someone else’s property are not always respectful of that property. You could return to your home after your renters leave to find they had a party and caused extensive damage to the flooring and walls, or find that a renter didn’t follow instructions and overflowed the hot tub. If you have adequate vacation rental insurance, you can be confident these types of losses are covered.
You can also rest easy knowing that if a loss occurs while your property is being rented, and you need to find somewhere else to live while the damage is repaired, you won’t be on your own to foot the bill. The CBIZ Vacation Rental Insurance policy automatically provides up to $50,000 of coverage to pay for your additional living expenses if the damage was to your primary residence, with the ability to raise that limit up to $100,000 in some cases.
Most homeowners insurance policies don’t provide coverage for short-term vacation rental activity or for the property owners’ lodging when damage occurs. When you rent out your home to travelers, you are a vacation rental property owner. As such, you need vacation rental coverage designed to be there for you when you need it most. To learn more, download our free checklist, Does Your Current Insurance Coverage Provide Adequate Protection for Your Vacation Rental Property?