Do you want to cover your vacation home with a policy that isn't quite right? Probably not. Then why go with a company that doesn't specialize in seasonal home insurance?
Your Vacation rental home isn't standard and your insurance policy shouldn't be either. You need specialized short-term/Vacation rental home insurance coverage that will take care of the things that matter to you. The Cribb Insurance Group specializes in short-term/Vacation rental home insurance and understands your needs. Lucky for you, our agents can help you choose the right short-term/Vacation rental policy for your property, so you can relax while someone else takes care of the paperwork!
We've Got You Covered:
Choices! You can choose a package that fits your seasonal home or vacation property or create your own customized policy. You choose what fits with your needs.
Comprehensive Property Coverage.
This means we cover most direct, sudden and accidental physical losses that aren’t specifically excluded in your policy.
Named Peril Coverage.
This means that we cover "perils" (fire, explosion, lightning, windstorm and hail damage) which are specifically named in your policy, subject to policy exclusions and conditions.
This provides coverage if you're found legally responsible for an accident that causes injury to someone who doesn't live in your home or causes property damage to another's property.
Actual Cash Value.
In the event of a covered loss, this covers the cost to replace or repair your damaged property, with a deduction for depreciation, which reflects the age and condition of your home.
Agreed Loss Settlement.
If your home is destroyed by an insured loss, you receive the full amount of agreed upon insurance for your home (minus any applicable deductible). No hassles.
Optional Replacement Cost.
Purchase Optional Replacement Cost coverage and get a settlement that reflects the cost to replace the damaged items with new property of comparable material and quality, without any deduction for depreciation.
Extended Replacement Cost.
You can receive up to 25% of the insured amount, to replace your home! (not available in all states)
We also offer choices for:
Replacement Cost coverage on personal property
Additional coverage for jewelry, watches and furs
Business property and liability
High liability limits
Do I Need Vacation Rental Insurance?
Owning a short term or vacation rental property is an extension of the American dream. But just as your primary home has costs, upkeep and liability concerns, the same goes for your vacation rental property.
The question for property owners is usually: “Do I need special vacation rental insurance for owners?”
The question of coverage applies to the usual policies property owners use to insure their Landlord properties. Will it still cover the landlord property used as a short term rental property?
If you’re renting out the vacation property for money, it’s considered a business activity and probably not covered by the homeowners policy. Even if you don’t earn a lot from the rental income, insurance companies still consider it a business activity and may even exclude vacation rental homes from coverage. An important distinction is when you have a vacation home that you don’t rent out but let family and friends borrow. An insurance carrier likely won’t classify that as a rental property, and it can be covered by a separate homeowners policy.
Condo insurance policy
If your rental is located in a building or community with a blanket or group policy, find out what’s covered. Most likely, the policy covers liability on the grounds or building exterior but not the interior of your property. If there’s a problem inside your rental home, that’s your responsibility.
Landlord Package policy
If you currently have a property covered by a Landlords package policy, you will need to find out if your carrier offers a short term rental endorsement. Most landlords policies have specific language that states rental agreements must be long term agreements, usually a minimum of 6 month rental terms.
Personal liability or umbrella insurance
A personal liability or personal umbrella policy covers people in your household for personal negligence or liability. As a home rental is considered a business venture, these policies generally wouldn’t apply.
According to the Insurance Information Institute, If you plan to regularly rent out your second home, you may need separate business coverage or a landlord policy that includes a short term rental endorsement.
What kind of policy should you get?
Talk to one of our agents about getting the right policy for your situation. If you only rent out the property occasionally, you might be able to get a rider or endorsement on your homeowners, condo or landlords insurance policy. If you rent out more frequently, a stand-alone commercial or business liability policy might be recommended.
How much does vacation rental insurance cost?
The cost of vacation property rental insurance depends on a number of factors. They include your deductible, the replacement cost value of the home, the location, amenities and amount of coverage selected. Vacation rental insurance policies are usually more expensive than primary homeowners insurance or even your standard landlord policy, because the home sits vacant more frequently and there’s a higher likelihood of filing a claim.
If you don’t choose to get vacation rental insurance coverage, you may be taking a big financial risk. Talk to one of our agents today to find out more about the coverage you need to protect your short-term/vacation rental.
Additional Tips for Insuring Your Vacation Rental
Short-term rental insurance is an important and useful form of protection for any rental property owner. When you properly insure your short-term rental property, you can safeguard against significant financial loss. In the insurance sector, a short-term rental (STR) is a property rented out to tenants for 30 days or less. When your property is intended for longer rentals, it is generally wise to secure more extensive coverage.
Finding the Right Insurance Policy
As we’ve shown above, many personal liability or homeowner’s policies don’t cover vacation properties because they are used for a business activity. Even so, insurance experts estimate that more than 90% of all STR property owners have not secured STR-specific coverage. Though some STR owners choose to rely on generic landlord's insurance, this is not optimal. Such cost-saving expedients can ultimately cost you dearly.
Short-Term Rental Insurance: Worth the Cost
When you purchase STR insurance, you can expect to pay twice what you would pay for a standard homeowner's policy. Though this might seem like a steep cost for some, failure to purchase the appropriate policy can have catastrophic results.
As you might hope, STR insurance is quite comprehensive. A policy of this type will cover the building and its contents. Additionally, STR insurance covers lost rental income in the event that damages shut down your rental business.
Most importantly, each policy of this type includes coverage for commercial general liability. This is the same comprehensive coverage utilized by hotel chains like Wyndham or Hyatt. Whether you realize it or not, hotel chains are your competitors.
Taking Your Rentals Seriously
Vacation rental owners should take their rental operations seriously. Even if you exclusively rent your property through a home sharing service, you should remain business-oriented in your mindset. Maintaining the proper personal, property and travel insurance is not just a good business move, but also good for your peace of mind.