Whether you own one vacation property or ten, and whether you rent out your vacation rental property a few times a year, just for a season, or strive to have your rental calendar booked all year round, it’s a business.
You’re earning income from the rental activity. What would happen to that income if a fire or another unforeseen event caused extensive damage to the property, making it uninhabitable for months? If you are relying on homeowners insurance or on a host liability insurance policy to cover your lost rental income, chances are your policy may not offer this coverage. That’s in addition to the possibility that your property losses may not be covered under these types of policies.
Fortunately, if you have a CBIZ Vacation Rental Insurance policy, you automatically have coverage for your lost rental income and extra expenses when a covered property loss occurs.
Consider this scenario:
Property Owner Patti has a lake cabin she rents out every summer. Her cabin is large, well-maintained, and up-to-date, with many popular amenities. Patti is lucky enough to have renters who consistently book their vacations with her months in advance.
Three days before the first renters of the season are due to arrive, a heavy storm moves through the area. A tree falls on the roof of the cabin, causing extensive damage to both the interior and exterior of the property. Contractors tell Patti it will take a month or more to make the cabin habitable again. This means Patti needs to cancel upcoming rental bookings.
While she is devastated about the damage to the property and about having to disappoint her scheduled renters, Patti insured her property through CBIZ Vacation Rental Insurance, so she knows she has coverage for her vacation rental income.
In fact, because the property damage is a covered loss under her policy, the CBIZ policy will pay Patti the actual income loss she sustains, with no time limit. So, Patti will still be able to rely on a steady income even though she doesn’t have renters occupying her cabin. Patti also opted for extended business income coverage, which provides coverage for an additional 180 days after her property has been repaired. This coverage can be invaluable in helping vacation rental property owners get back on their feet after a loss.
Owning a vacation rental property comes with risks. Fortunately, insuring a vacation rental property to mitigate those risks is easy when you choose CBIZ Vacation Rental Insurance. To learn more, download our free eBook, 8 Essential Things You Need to Know to Protect Your Vacation Rental Property.