Vacation Rental Insurance: What It Is and Why You Need It
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?
Vacation rental insurance is a type of travel insurance policy built to cover your lodgings while traveling. Some platforms like VRBO and AirBNB offer their own vacation rental insurance, whereas third-party travel insurance companies often offer vacation rental coverage as part of a comprehensive travel insurance plan.
What the policy can cover depends on the provider and the plan you choose, but coverage can range from full reimbursement due to unexpected cancellations or even damage to the rental property. For instance, you might:
- Have to cancel due to a medical emergency before your trip
- Need medical assistance for an injury you experience while on vacation
- Cut your trip short when a hurricane strikes
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 travel insurance policies won’t cover the following situations:
- A change of heart about your travel 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 contract
You should also know that travel insurance 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 travel 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 budget travel insurance 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 and interruption coverage can vary dramatically by rental platforms and management companies. Consider comparing plans with Squaremouth to find the right coverage for your need. Ultimately, if you’re ever caught in a difficult situation, vacation rental insurance can make all the difference.
By Virginia Hamill