There are many things to know before purchasing insurance for your new vacation rental home. We are providing only a few questions here for your information. At Ownby Insurance we pride ourselves in personal service; each home is special and each home requires special attention for the proper insurance for the home. When you complete our Get a Quote Form, you will be telling us most of what we need to know to get you a qualified quote quickly. Here are a few other great things to know before you prepare to fill out your application:
Q: When I am renting a home for short term rentals, is that considered a business activity?
A: When you collect money to allow someone to stay at your property for a short period of time, this is a business transaction. It is not “occasional”, nor is it the “residence” of your renter.
Q: Will my regular homeowner’s policy cover business activities such as a vacation rental should I begin to rent it?
A: Regular homeowner’s insurance specifically excludes business activities, so a regular homeowners policy is not recommended.
Q: What type of liability coverage does a regular homeowner’s policy carry?
A: Personal liability. For a vacation rental you will need liability insurance for anyone who visits the home.
Q: What is the difference between personal liability and commercial liability?
A: Personal liability coverage will not respond to business activities, such as charging money for someone to stay at your vacation rental. Instead, personal liability is intended to cover you in the event that someone claims that you have caused them bodily injury or damaged their property as a result of your personal actions. What businesses carry and what you need for your vacation rental business is commercial liability coverage (business liability). This is because commercial liability is specifically designed for business activities like your vacation rental and therefore, does not exclude coverage for such things.