Your Guide to Selecting the Right Vacation Rental Insurance Coverage

Your Guide to Selecting the Right Vacation Rental Insurance Coverage

Your Guide to Selecting the Right Vacation Rental Insurance Coverage

The vacation rental market has seen remarkable growth in the last few years. It is expected to grow another $57 billion between now and 2028.

While renting a vacation property can be a lucrative endeavor, it also opens you up to a variety of risks. This is why insurance is a must have. But, with so many options, selecting the right policy can be a hassle.

This article covers how to navigate vacation rental insurance coverage options. Keep reading to find out what factors to consider when finding the best policy for your coverage needs.

Property Damage

Rental properties may be susceptible to theft and vandalism, but the main threat is property damage by guests. This can be intentional or unintentional.

Finding the right vacation rental insurance coverage depends on the level of risk to which your property is exposed. Some policies may not extend to intentional damage by guests--the idea being that the security deposit would cover these expenses.

However, many property owners do not want to keep security deposits, because it could lead to bad reviews. In short, find a policy that protects against all types of damage, regardless of the causes or intent.

Natural Disaster Damage

Like with any building, damage can happen without a human cause. Water leaks, mold, and pests can all do serious harm to structures and systems, like electrical or plumbing. As can storms, tornadoes, hurricanes, and other natural disasters.

When selecting this type of policy, make sure you know what is covered. For instance, some plans may protect the structure of your home but do not cover the interior of the home or furniture.

Loss of Income

Vacation rentals are like small businesses. If the property is uninhabitable, you lose money. Some property insurance policies help protect against this, so you can maximize income.

Like other categories on this list, the necessity of this depends on your level of risk. For instance, a beach property rented mostly during the summer, when it is susceptible to storms, carries a different level of threat than a mountain home that has steady rentals most of the year.


A final--yet perhaps most important--reason for vacation rental insurance is liability. If a guest is injured on the property due to an accident or a fixture that malfunctions, you will be covered.

Note that platforms like AirBnB and VRBO offer primary liability coverage. However, a lot of property owners are surprised to learn that coverage is very limited. Make sure you find a plan that protects you and your assets.

Learn More About Vacation Rental Insurance Coverage

Now that you understand the factors that influence vacation rental insurance coverage, you can find the right policy for you. An experienced management company can further assist you in getting protection for your vacation rental investment.

At PMI Lake Of The Ozarks, we work to create a friendly, professional experience for property owners and guests. Our founder is a 43+ year resident of the Ozarks and brings an intimate knowledge of real estate trends and management in the area.

Reach out to us today to learn more about our services.