The advantages of rentals are that they can provide more space (which can be important when traveling with a family), they can offer amenities such as kitchens so that you donâ€™t have to go out for every meal and some vacation rentals can deliver more value for the price than traditional hotels and resorts.
However, if youâ€™re planning on renting a beach house for the family reunion or a cabin in the mountains to get away for a weekend, there are a few things to consider, according to our friends at Trusted Choice.
Protecting Your Property and the Landlordâ€™s
While yourÂ homeownersÂ orÂ rentersÂ insurance policies will generally cover your possessions anywhere in the world, renting a vacation home can expose your property to more risk than staying in a hotel might, since you may be bringing additional belongings such as bedding, cookware, etc. that you wouldnâ€™t normally bring with you â€œon the road.â€
Your policy also provides for coverage for property that is â€œusedâ€ by an insured, so that if a television belonging to the landlord is damaged, you would have some coverage; there is $1,000 coverage in homeownerâ€™s policies for an insured damaging someone elseâ€™s property.
A standard insurance policy provides for coverage for property damage you may be found liable for, so that if you are grilling outside or cooking in the rented house and you accidentally start a fire that damages the property, you should have coverage. If you are renting a vacation property, check with ourÂ Trusted Choice independent insurance agents about the coverage you have in your homeowners or renters policy when making your plans.
Other than the $1,000 mentioned above, the homeownerâ€™s liability coverage only extends to damage resulting from fire, smoke or explosion:
“Property damage” to property rented to, occupied or used by or in the care of an “insured”. This exclusion does not apply to “property damage” caused by fire, smoke or explosion;
For example, my wife and I rented a chalet in the mountains for our anniversary. She took a shower in the loft bathroom and the tub curtain wasnâ€™t pulled completely shut. Water leaked through the ceiling into the room below. IF we were liable for this damage, our policy would only cover $1,000.
A personalÂ umbrella policyÂ might provide more coverage. Our agents can help you obtain an umbrella policy or review an existing one.