Do I Need Vacation Rental Insurance?
Owning a second house or vacation rental property is an extension of the American dream. You can fly to it for the summer months or enjoy a break over the holidays for the festive season. However you use your property, it’s vital that you obtain the insurance protection it needs and deserves.
If you’re renting out the vacation property for money, then it’s considered a business activity and, therefore, not covered by your homeowners policy. Even if you don’t earn a lot from the rental income, insurers will still consider this business, meaning that you may need to obtain separate coverage in order to keep it protected. However, if you don’t rent it out but your family and friends borrow it, it won’t be considered as business activity and can be covered by a separate home insurance policy.
A personal liability or personal umbrella policy is a good form of protection to acquire if you have more than one property. It covers people in your household for personal negligence or liability.
Talk to your insurance agent about finding the right policy for your situation. If you rarely rent out your property, you may be able to get a rider or endorsement on your home insurance. If you frequently rent it out, a stand-alone commercial or business liability policy could be the right fit.
At Nahai Insurance Services, we want to ensure the safety of your assets. Out specialty coverage for high-net-worth individuals seeks to safeguard your precious properties to give you peace of mind with adequate coverage. Contact us today to get started on your vacation home policy!