Vacation Rental Insurance: What It Is and Why You Need It

Vacation Rental Insurance: What It Is and Why You Need It

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After all the effort you put into finding the right rental for your vacation, it would be a shame to learn that an unexpected emergency caused you to lose your deposit. That’s where vacation rental insurance comes in. Getting this coverage can protect your investment and give you peace of mind so you can enjoy your travels.

What Is Vacation Rental Insurance?

For travelers, vacation home rental insurance is a policy that helps protect you if something goes wrong with your accommodations while traveling.

What might go wrong? Any number of things. For instance, you might:

  • Have to cancel if you have a sudden medical emergency before your trip
  • Need assistance for an injury you experience while on vacation
  • Cut your trip short when a hurricane strikes
  • Accidentally damage the property you’re renting

Depending on the vacation home rental insurance you get, these and other issues may be covered. Even better? The coverage typically applies to your traveling companions, too.

But no insurance policy can cover every situation — and that’s true of vacation rental plans, too. Most policies don’t cover situations such as:

  • A change of heart about your destination
  • A bad cold that makes traveling uncomfortable
  • Purposeful, malicious, or negligent behavior
  • Damage caused by a pet that wasn’t allowed in the rental contrac

You should also know that policies can vary from company to company. Some insurance for vacation renters actually covers lost baggage and car rentals. That means you want to take a look at what the policy you’re considering covers to see how well it matches up with your trip.

Please note: Vacation rental insurance can also refer to coverage for the property owner. Home insurance policies as well as the plans offered by rental platforms like VRBO can provide coverage for property owners.

How Much Does Insurance for Vacation Rentals Cost?

The cost of vacation rental insurance varies based on a number of factors, like the overall cost of your trip, but you can generally expect to pay between 5-10% of your overall trip costs.

Plus, the more protections you want the more you’ll likely have to pay for your policy. So if you may end up with a higher premium if you want:

  • A waiver for a pre-existing condition
  • Coverage for inconveniences, like getting locked out of your rental home
  • Cancel For Any Reason coverage
  • Reimbursement for baggage delays

You may also end up paying more for your policy if the company insuring your vacation rental offers other extras, like concierge service or identity theft protection.

The key to finding affordable vacation rental insurance is comparison shopping. Just be sure you look at more than the cost. While price is important, so are the coverage options. A bargain basement policy isn’t a good deal if you end up with less coverage than you need.

Is Vacation Home Rental Insurance Worth It?

Insurance for vacation rentals is a smart move, especially considering the time and money you’ve put into planning your vacation. Cancellation policies can vary dramatically by rental platforms and management companies. If you’re ever caught in a difficult situation, vacation rental insurance can make all the difference.

By Virginia Hamill