VACATION RENTAL – Bold City Insurance

VACATION RENTAL BCIadmin 2020-06-15T19:10:55-04:00

The Vacation Rental Insurance policy replaces a homeowner’s (HO) or landlord (DP) policy. It is written as a business policy, giving the short-term vacation rental owner comprehensive coverage for their building(s), contents, commercial business liability, and business income. It also includes personal liability when the rental “doubles” as the owners primary residence.

All-inclusive insurance that is custom-penned with Lloyd’s of London for the unique risks of short-term vacation rental properties. It’s the most comprehensive insurance available today for vacation rental property owners.

LIABILITY: The single biggest exposure you have as a vacation rental owner is liability. When you open your door as the owner, you are also opening yourself up to liability risk. This liability risk is there whether you are simply renting a downstairs apartment or your entire property. What if a guest were to injure themselves while staying at your property? What if you were found to be liable? Maybe the shower was not thoroughly cleaned and a guest slipped on soap scum? Or worse, the vacation rental caught fire and resulted in a guest’s death. The Insurance policy provides $1,000,000/$2,000,000 in commercial/business general liability. You are covered. And, when the vacation rental also “doubles” as your primary residence, 1,000,000 in personal liability is included in the policy.

BUILDING & CONTENTS: The second biggest exposure you have as the vacation rental owner is the actual property itself (building and contents). What if a guest were to accidentally start a fire and burn your property down? Or steal/damage your contents? The Insurance policy insures your building and contents as a business (commercial form) with replacement cost (new for old) on special form (all risk). The reason the insurance policy uses a commercial form is because there are no standard occupancy restrictions as in a homeowner’s policy. This means at the time of a covered loss, the property can be occupied by you the owner, friends or family, paying guests, or even be vacant as we remove the vacancy clause. It’s the only way for a vacation rental owner to properly insure their building and contents.

BUSINESS INCOME: Another big exposure you have is lost rental income, or business income. You have worked extremely hard to turn your property into an income generating short-term vacation rental business. What if a tree fell on your roof and you could no longer rent your property for the summer? Or worse, you had a total loss on the property as a result of a fire or hurricane? You need to protect the income your vacation rental generates. The Insurance policy insures your vacation rental income as “actual loss sustained” with no time limit, what this means is you are only subject to the limit of insurance you choose for your insurance policy. Some owners only insure $10,000 while others elect to insure $250,000. It’s your choice as income varies significantly between owners.