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Does My Home Insurance Cover Vacation Rental Properties?

by | Feb 10, 2022 | Personal Property Insurance | 0 comments

Summertime is quickly approaching! Out with the cold and in with the sunshine! When you and your family are planning this year’s vacation, you will want to not only have a great time and enjoy your vacation, but also remain safe in your vacation home.

If you have your own homeowners’ insurance policy, you may be wondering if this coverage transfers over to your vacation home and whether or not you, your family, and your belongings will be safe in case of any type of loss or damage. This is a smart question to ask your insurance agent and/or the owner of your vacation rental properties. Let’s go over a few facts that may help answer your questions!

What Does My Homeowners’ Insurance Policy Cover?

If you hold a homeowners’ insurance policy for your own home, it is important that you understand what that policy includes and entails. Most common homeowners’ insurance policies have two coverages:

  1. Personal Property Coverage
  2. Liability Coverage

Personal Property Coverage

Personal property coverage, as it is rightfully named, covers your and your families’ personal property from losses and damages. This usually has a dollar value limit, so be sure to be aware of that limitation. This policy can also extend to covering your property when it is brought with you on vacation, though possibly at a lower dollar value.

This may be one way in which your property is covered. However, consult with your insurance agent and make note of the verbiage in your contract before relying on this coverage in those instances.

Liability Coverage

Liability coverage will help you not only when someone is hurt within your own home but can roll over to damages that you/your family may cause within someone else’s home/vacation home that is caused by a fire or explosion. There are specific limitations for this coverage on homes that you rent, so be sure to clarify those with your insurance agent before traveling.

Read Also: Basic Homeowners Policy isn’t Always Enough

What Does the Homeowners’ Insurance Policy of the Rental’s Owner Cover?

Before signing on the dotted line for your vacation home, it may be worth asking what coverage the rental home’s owner holds for the property. In this case, the homeowner’s liability policy should cover you/your family in case of injury on their property due to negligence out of your control.

It may also cover damages due to weather events, acts of God, and other damages, dependent on the property verbiage. Protect your precious cargo by asking for details of these available coverages before stepping foot onto the property!

If the rental home owner purchased vacation rental property insurance, it may offer limited property and liability coverage. This should be shown to you upon renting the property, though if not, it does not hurt to ask before signing on the dotted line!

Can I Purchase Additional Coverage?

Unfortunately, homeowners’ insurance and vacation rental property insurance are not the same policies. However, if you choose to, you can purchase this specific policy with your insurance agent to help protect you and yours while enjoying your next vacation!

Vacation rental insurance can help cover you in several unfortunate situations, both before, during, and after your vacation time! This coverage can reimburse you for certain cancellation fees before you travel, loss of security deposit and/or damages caused while you travel, and even medical bills, roadside assistance, and other coverage even after your stay! Ask your insurance agent how this type of coverage can ease your mind!

If you are worried about what coverage can help ease your mind while on your next vacation, contact our specialists at Thomson, Smith, and Leach! Our agents are ready to serve you and provide you with the details and coverage options available to you that can help make your vacation a breeze!