Get the Correct Rental Property Coverage
Owning a vacation home is a lifelong dream to many and that is why when you put it up for rent, it is so important to protect your dream with the right rental property insurance coverage.
Insurance is a complex and complicated issue. Insurance companies underwrite and price their policies based on many different factors and risk. In many cases, if the insurance company has not been made unaware of a certain risk or activity then there is most likely no coverage for that activity. Likewise, many companies have rules and exclusions when it comes to rental activities that could result in a lack of coverage or a coverage denial.
Most standard homeowner’s insurance policy (HO3) are set up for a person who lives in a house full time and they almost never provide coverage for any rental exposure. If you currently have an (HO3) policy and are renting out your home, there is a very good chance you have no coverage for injuries sustained by your renters or damages caused by them.
The standard condominium owner’s insurance policy (HO6) can often provide an option to cover renters, but in many situations, there are limitations to how many times the home can be rented and there are usually restriction on how long the home has to be rented for. Most condo policies will not accept weekly and nightly rentals. If your company does not know your condo is being rented or if your rental arrangements do not conform to their rules, you could end up facing a coverage denial.
The standard dwelling fire policy (DP3) is what is used to cover homes that are rented, but almost all of them have restrictions on how the home can be rented. Some require a twelve month lease, others will only allow the home to be rented a limited number of times per year, and most do not allow weekly and nightly rentals. The coverage on the dwelling fire policy is also often more restrictive than the coverage on a homeowners or condominium owners policy. Again, if you are renting your home on a nightly or weekly basis there is a good chance that your company does not allow that type of rental activity.
At Vacation Rental Insurance Agency, we specialize in finding you the right company and policy for your vacation rental. We are an independent agency that has partnered with a select group of companies that will insure a wide variety of occupancy types. This allows us to match you with a company that can provide the right insurance for your rental property in Florida.
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Protect Your Vacation Home
- If you rent for short terms, be sure you have coverage for this
- A standard policy may not cover injury to renters or damage by them
- A standard dwelling fire policy typically has restrictions to rental terms
- By not conforming to the rules of your policy, you could face a coverage denial