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If you rent out a vacation property that you own, you may think that a standard home insurance policy is enough to cover potential risks. However, most of these policy benefits won’t apply, as renting out a home is viewed as a business activity. Instead, you must purchase a separate policy that addresses the business aspects of the arrangement—such as landlords or vacation rental insurance. Here are a few reasons why this type of coverage is essential for all those who rent these properties for money.

3 Aspects Covered By a Vacation Rental Insurance Policy

1. Injury Liability

Without proper insurance, you may be held liable for medical and legal costs that result from injuries that happen to any person on the property. It’s important to note that you may not just be held liable for injuries to renters—but to guests, squatters, and burglars that are harmed on the property. Since the expenses associated with these incidents can be extremely high, having a vacation rental insurance policy can protect you from serious financial risk.   

2. Property Damage or Loss

insuranceSimilar to a home insurance policy, vacation rental plans are designed to cover costs to repair damaged property and replace stolen goods. For example, benefits may pay for damage related to fire, storms, water, theft, or accidents that tenants cause. However, you will need to purchase additional coverage if you are concerned about earthquake or flood damage.  

In general, these policies can be adapted to cover both exterior and interior structures. They can also be designed to protect belongings within the home—such as furniture or art—and amenities that tenants may use—such as swimming pools and bicycles.

3. Lost Income

As a policy designed to address business activities, vacation rental property insurance can also help protect against lost income opportunities. Specifically, if the home becomes uninhabitable, your provider may cover some or all of the rental income that you are unable to receive while the property is repaired.  

 

While vacation rental property insurance is essential, the exact coverage you need can vary depending on many different factors] such as where the home is located and how often you rent it. Committed to helping policyholders gain peace of mind, Comaltex Insurance will help you explore these specifics in detail. Providing everything from home insurance to commercial coverage, these agents have all the resources necessary to make sure your plan is customized to provide maximum protection at a minimal cost. Visit this New Braunfels, TX, insurance agency online to learn more about their expansive products and services or call (830) 625-7511 to request a free quote.

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