A Host's Guide to Vacation Rental Insurance Coverage

A Host's Guide to Vacation Rental Insurance Coverage

One woman's dreams of owning a vacation rental turned into a nightmare. She thought her guests were in town visiting family. Instead, they threw a 100+ person Halloween party.

The resulting damage set her vacation rental business significantly back. It would not be as devastating if she had vacation rental insurance coverage. Learn from her mistake and protect your vacation rental with a comprehensive insurance coverage plan.

Homeowners Insurance

You may already have a homeowners insurance policy on your vacation property. This policy may or may not provide coverage. Some policies become void because the vacation rental is a business, not a home.

Property Damage

Property damage insurance protects you from damages caused by your vacation guests. It will cover the repair or replacement of the damaged property. This could include accidental or intentional damage.


Accidents happen when you are a vacation host with guests on your property. A liability insurance policy will protect the property owner from claims. As the vacation property owner, it is your duty to provide a safe and secure space for your guests.

If a guest gets injured, they could claim you failed to do this. Look for a comprehensive policy that covers legal fees and compensation if found liable. This policy should minimize your out-of-pocket expenses in a liability lawsuit.

Rental Income

You only profit from a vacation home if you can book paying guests. Short-term rental insurance protects your income when your vacation rental is out of commission.

During this time, the insurance policy pays out while you have repairs or replacements done. That way, you can continue to meet your financial obligations while your property is out of commission. A property management company can help you make repair arrangements to minimize your property's downtime.

Extraordinary Events

Owning a vacation home in Florida presents some unique weather risks. While people come here for the warm weather and sunshine, there are also hurricanes and tornados. Extraordinary events coverage protects you if your home gets damaged in a natural disaster.

This coverage is a separate policy or rider to your basic coverage. The terms can get technical, so read the policy carefully. A hurricane policy may not cover specific damage caused by wind or flooding.

Listing Platform Insurance

If you list your vacation rental on one of the major vacation listing websites, you get automatically enrolled in the platform's insurance policy. While this policy will provide a certain level of coverage, it may not be enough.

Some owners also find it difficult to file a successful claim through these generalized policies. Having your own insurance policy gives you an extra layer of protection.

Purchase Vacation Rental Insurance Coverage

Vacation rental insurance coverage is a must for protecting your real estate investment. While you hope for the best, you must prepare for the worst. Buying insurance treats your vacation rental like a business by providing a financial safety net.

At PMI Orlando MyPlace, we help vacation rental owners manage their investments. We can provide guidance on all aspects, from marketing to booking and insurance coverage.

Protect your vacation rental with the right insurance policy and management team at PMI Orlando MyPlace.