We recently had the opportunity to sit down with CBIZ Vacation Rental Insurance Sales Manager Tony Melillo to ask a few burning insurance questions. Tony helped to guide us through the basics of comprehensive coverage and what it should mean to a vacation rental property owner. Read Tony's answer in this Q&A blog...
Q & A with Tony
What Does Comprehensive Coverage Mean?
“Comprehensive insurance refers to vacation rental policies that cover the vacation rental home and its contents, plus commercial general liability and business income coverage. This is the most complete coverage available for vacation rentals. It is considered an all-risk policy, covering perils such as fire, theft, vandalism, wind/hurricane, hail, water damage, and many others.
Additional highlights of the comprehensive policy include personal and advertising injury (e.g., libel, slander, etc.), medical payments, and personal liability insurance (when your vacation rental is also your primary residence)."
Does CBIZ Have Comprehensive Coverage?
"The coverage offered by CBIZ is a comprehensive policy with optional coverages designed specifically for risks associated with owning a short-term vacation rental business. In addition to property and liability coverage, optional coverages include:
Bed Bug Cleanup Expense - Pays for the reasonable and necessary cleanup and removal resulting from bed bug nesting or infestation at the insured premise.
Higher General Liability Limits - Particularly important for higher value homes, this broad coverage protects the insured from financial loss if liable for bodily injury or property damage to a third party.
Additional Living Expense - For vacation rentals that are also a primary residence, this coverage reimburses the insured for comparable standard of living costs following a covered loss.
Condominium Loss Assessment - Pays your share of an assessment charged to all unit owners by the association for physical damage to property by a covered cause of loss.
Building Ordinance Coverage - Provides coverage for undamaged property that must be destroyed due to a law or ordinance that regulates construction."
Why Is Investing in a Trustworthy and Comprehensive Insurance Policy Important?
"If you need to file a claim, you’ll want to have a policy backed by a reputable, financially strong company that has a history of paying claims in this niche market. The policy itself should include, at minimum, property coverage and commercial general liability insurance, which provide protection from claims arising from business operations and recovery from business income interruption. 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 homesharing, 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."
"Make sure coverage is available and appropriate for the exposure."
Is There Anything Else We Should Know About the CBIZ VRI Comprehensive Policy?
"One of the least understood components of the CBIZ policy is the limited liquor coverage. Vacation rental hosts often leave a welcome gift for their guests, which may include alcoholic beverages. The CBIZ policy allows the host to provide a bottle of wine or champagne, or a six pack of beer for guests to enjoy. This coverage does not limit guest consumption of alcohol on the premise. Under the CBIZ policy, guests may enjoy alcoholic beverages as they would on any other vacation; the policy simply limits the amount that a host can provide."
If you have questions about our comprehensive coverage, we'd love to talk it through with you! To set up a no-obligation consultation with Tony and his team, click the button below: