Exposed: 3 Risks You Take Without Proper Vacation Rental Insurance

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Exposed: 3 Risks You Take Without Proper Vacation Rental Insurance


Peace of mind. That’s what insurance is there for. We all need protection from risks. The same can be said about our vacation rental properties. You need to be aware of what level of risk you are exposing yourself, your home, and your business to.

First off, If you lose your rental income, you are at risk of losing your business.  Secondly, if you lose your property to a fire, you lose your home. Most importantly, the biggest risk you expose yourself to is liability. Protect yourself from these three biggest risks will give you the peace of mind, and mindset, you need to amp up your vacay biz.

Contents & Building

You have worked hard to earn your home and the contents inside of it. The only way to protect those things fully is to ensure you insure (see what I did there?) your contents and your building. The second most impactful risk you expose yourself to as the vacation rental owner is the physical property you are renting as well as all of your items inside the dwelling.

If a guest ignites your house and it burns into flames, or they decide they really like your property so they steal electronics and other household items. What would you do? Are you covered? While you cannot replace sentimentality with content and building insurance, you can recoup your financial loss if a disaster strikes.

Business Earnings

You need to protect the income your vacation rental property generates for you. If you suffered a total loss due to a fire and had no coverage for your earnings it would be devastating. The right vacation rental insurance policy will insure you for the amount of your loss sustained without a time cap on it.

Because everyone’s business income can vary greatly, you should have insurance that covers your actual amount of earnings. This means is the amount you choose for insurance is the amount you have to pay. You may choose coverages around $150,000 while your neighbour running an income-earning house may only opt for $20,000 coverage. You have worked hard to turn your home into a rental business and you need to protect that investment.


The single biggest risk to you and your vacation rental business is other people- lability. The risk of liability is present to any homeowner in many situations. If you are renting a suite in your home, opening the door to a visitor, or allowing vacation guests you are exposing yourself to a liability risk.

A total loss such as a fire could cause a guest’s death- you are responsible. A slip and fall in a greasy bathtub or down a set of slick stairs with a loose banister, guess who is liable? That’s correct, you are! A typical property policy will cover may not be enough. Opt for a vacation rental policy that offers between one and two million business or commercial liability coverage, and if your vacay rental is your primary residence you may have covered one million personal liability coverage.

About the Author: An acknowledged expert in luxury coastal properties with more than fifteen years of real estate experience,  Kym Talbert is devoted to serving the needs of home buyers and sellers in coastal Orange County. Known for integrity and perseverance, Kym combines unparalleled customer service with a state-of-the-art web marketing presence.

By | 2018-04-23T18:48:40+00:00 April 24th, 2018|Uncategorized|0 Comments

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