Vacation rental insurance as the word goes is a rental insurance coverage which you can obtain while on a vacation. It is also known as short-term vacation rental insurance. Short term since you will be on a vacation for a short while. How we wish to be on a vacation for a longer period of time. But hey, back to reality.
Essentially, what vacation rental insurance does is that it replaces your current homeowner’s or dwelling policy and provides you the complete coverage for a short span of time.
Traditionally, with a homeowners policy, the policy will not be completely compensating you for loss of rental customers in an event where something happens to your property. However, in an event of a covered loss, your short term vacation rental policy will go on to pay you the rental income for as long as you may be out of business, depending upon the limit you have selected on the policy.
Below are some tips you should be aware about:
1. A short term vacation rental in considered as a business by insurers – when you allow a guest to stay at your place and collect the money, it is simply a business transaction you’ve made and is no different than a café or a restaurant.
2. A typical homeowner’s policy excludes coverage for business activities – a homeowners insurance Florida policy won’t consider any claim that involves running a business from your home.
3. A typical homeowner’s insurance Florida policy and many dwelling/landlord policies have personal liability coverage – again, personal liability will also not consider any business activities. For instance, a guest living in your home and paying you falls down the stairs and decides to sue you for the medical bills. In this event, you won’t be covered and will require a commercial liability policy.
4. A personal umbrella policy does not cover nor protect a business – a personal umbrella policy will not cover business activities. However, a personal umbrella will specifically be for you wherever you go as it provides you with additional layer of security for damages to other people’s property or any injury you cause to others by accident.
We are hopeful that this above information was helpful and aids you in your understanding about how vacation/short term insurance is different from homeowners insurance since they have varying features.
If you have any queries regarding your home insurance, feel free to consult us. We at Insure Floridians specialize in best insurance for homeowners. Also, fill out the free quote form to get the most affordable insurance rates out there!