Everything–including owning vacation rental property–comes with a degree of risk. Luckily, there’s vacation rental insurance that can mitigate these risks and keep your property and guests safe. But it’s very important to thoroughly understand every aspect of your vacation rental insurance policy so you know how your property is protected.

Whether you’re a long-time owner looking for a different policy or a newbie shopping for your first, these are the most important things to know about vacation rental policies.

What You Need to Know About Vacation Rental Insurance

Not all vacation rental policies are created equal

Every vacation rental insurance policy is different. That’s why you need to shop around to find the perfect one for your property. Take your time researching companies and coverage options until you’re sure you’ve found the perfect fit.

Generally insurance policies will vary by:

  • Whether you own a house, condo, apartment, villa, etc.
  • How often it is rented out
  • What level of coverage you need

And of course, it’s important to consider price, because overpaying for a rental insurance policy can seriously cut into your profits. So make sure not to buy excessive coverage because insurance agents might try to sell you more than you need.

What vacation rental insurance covers

When weighing your policy options, there are three main things to keep in mind:

  1. Liability: How the policy protects your guests
  2. Property and belongings: What kind and extent of damage is covered
  3. Rental income: How your income is guaranteed under extenuating circumstance

If a guest gets hurt on your property, what happens? Will you be protected? The right rental insurance policy should cover legal fees and liabilities that follow if a guest gets hurt on your property.

If a guest damages your house or belongings, a good rental insurance policy will cover replacement or repair. If the damage is extensive, you could potentially lose income so it’s best to choose a policy that will cover most of your income while repairs are being made.

Platform policies versus rental insurance

If you’re new to owning a vacation rental property, you might think that the insurance you get through platforms like Airbnb and VRBO are enough to protect your house. But actually, these platforms only offer primary liability policies. That means things like intentional damage, defamation, and assorted property issues are not included in the coverage!

Simply put, platform policies are not enough–you need real vacation rental insurance.

Vacation Rental Insurance–The Smart Move

Every vacation rental property owner needs a good insurance policy to protect themselves and their guests. Take your time and do the research before you commit to a policy. They are all unique, and it may take some shopping around to find the perfect fit for your property. But if something ever happens to your house or your guests, you’ll be so happy that you put in the work now.

If you have any questions please don’t hesitate to reach out us!

MountainTown VRM: Vacation Rental Management, serving Missoula, MT and surrounding areas.

MountainTown VRM

110 E. Broadway, St 203

Missoula, MT 59802

(406) 369-3080