Renting a vacation home can be a great breakout from constantly working and daily life work. Whether you are en route to a mountain lodge, a beach house or a city condo, you will be renting out a space for easy living. But will it require insurance? You will most likely bring along numerous personal belongings such as clothes, luggage, laptop and other jewelry items. For peacefulness, it is essential to know whether your belongings will be covered in an unforeseen event of theft, fire or other events.
You May Already Have Coverage
Great news is that your homeowners insurance or renters’ insurance probably has “off premises” coverage. This means that your personal belongings will be covered when you are outdoors- for example, possessions poached from your car parked outside somewhere or from your vacation house rental. You might also be covered for the set of perils recorded in your policy, such as theft, vandalism, hurricanes and fire. Although, homeowners policies do not cover any sort of damage or wear and tear to your belongings in transition.
Although discretion is advised here, some homeowners and renters policies restrict off-premises coverage to about 10 percent of the amount of coverage you have for your personal belongings. For instance, if you have $200,000 worth of coverage for your personal belongings, you will be having $20,000 worth of off-premises coverage. You should review your policy or ask your insurance agent who will be having a professional opinion in this matter. In case your off-premises policy limits are inferior for your needs, you might want to reckon purchasing a policy with higher limits.
To assist you in keeping course of your belongings and register an insurance claim if required, create a “vacation inventory” of all of the items which you will be taking along while you are travelling. You should take pictures of all of your belongings in one place and create a backup of that picture on your drive/dropbox. Apart from taking pictures just for travelling, you should record all of your belongings to have them as a proof in case anything were to get damaged.
Consider Adding a Floater to Your Homeowners or Renters Policy
If you tend to travel with largely high-priced expensive items, such as jewelry, exorbitant sports gear or musical devices, you may want to ponder on adding a floater insurance to your homeowners or rental policy. This addition to your policy will cover the cost of particular higher-value items, whether you are at your home or outdoors on a vacation. A floater may also take into account “puzzling disappearance,” which basically means that you might be covered in an event where you honestly misplace your belonging.
Moreover, relying on the type of homeowners or renters’ policy you acquire, your belongings will be protected by either an “actual cash value” or “replacement cost” basis. An actual cash value will cover the decreased value that is the depreciated value of the particular item and not what you paid for it initially or what it might cost to replace. On the other hand, replacement cost coverage will cover the cost of replacing the particular item with no depreciation subtracted. Indifferent of which type of coverage you have, you will still have to pay your deductible first, which will be out of your own pocket, before insurance jumps in.