09 Jul Tips for Insuring Your Summer Vacation Rental Properties

Do you have a summer house that you rent out to others? Whether you enjoy a few weekends in your beachfront property or invite family and friends to hang out at your home by the lake, you need to have the right insurance in place, especially if you take advantage of the times when you won’t be there and rent it out to strangers. Without the proper insurance policies, you could end up paying quite a bit out of pocket should something happen.

What types of insurance do you need for your vacation rental property? Here are some tips to keep in mind when you’re shopping insurance policies.

Homeowner’s Insurance May Not Provide Coverage

If you were living in your summer home full-time, your standard homeowner’s insurance policy would cover anything that pops up. It would pay for storm or wind damage, potential liability issues that occur on the property, and more. However, if you’re treating the home as a part-time rental property, a regular homeowner’s policy may not cover what you expect. Most insurers view such properties as businesses, even if you don’t rent the house out year-round.

Instead, you’ll need to carry a special rental house insurance policy. This is similar to a homeowner’s policy but with some key differences that allow the house to be insured as a business, not necessarily a home. With this type of coverage, you’ll be in good shape should something happen when one of your renters is present or when the house is vacant.

Check With Your HOA or Condo Association

Although some HOAs and condo associations may prevent you from renting your property in the first place, those that don’t have regulations against it might have insurance in place already. If this is the case, you may not need as detailed a policy as you think, since you’ll just have to fill in the gaps between their policy on your property and which coverages you’d like to have.

Wind Damage, Flooding, and Storm Insurance

Unfortunately, many house rentals are in areas of the country where the weather tends to be inclement. This means that storms with high winds, flooding, and hail damage are all likely. While your standard policy may cover some of these things, it may not take care of flooding or hurricane damage. You’ll need special policies if your summer rental is in a zone that’s prone to either of them.

Don’t Forget the Liability Insurance

In addition to the other forms of insurance that you need to have on your vacation rental home, liability needs to be near the top of the list. This type of policy will cover things that happen on your property, such as paying for the medical bills of a renter who falls over the landscaping rocks in the backyard and breaks their leg or slips and falls in your kitchen.

Need Insurance on Your Summer Rental?

If you’re wondering what types of policies you need to have to ensure that your summer house rental has the right coverage, contact Spivey Insurance. Our knowledgeable agents can help you find just the right type of policy and coverages that will give you peace of mind.