Vacation Rental Insurance: Cost & Quotes From $50/mo

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If you are a proud commercial holiday property owner, you must protect your business venture from unforeseen eventualities. Your property may be at risk of many things, such as accidental damage, storms, or fire. In some instances, guests can get injured while on your property. And they may file a lawsuit to receive compensation for such travel woe. That is where vacation rental insurance comes in.

General Liability Insurance for Vacation Rental Properties 

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $300,000/$1,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $100,000 $100,000 $5,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included
Can you get a certificate of insurance online? Yes Yes Yes Yes Yes
Name additional insureds? Yes Yes Yes Yes Yes
Deductible $0 $0 $0 $0 $0


Accidents in your vacation rental property can occur anytime. General liability insurance ensures you are protected from devastating financial losses. This vacation rental liability insurance covers the following:

  • Bodily injury–A guest can get injured in your vacation rental property. This liability insurance for vacation rental property will cover all the medical costs

  • Property damage–Your guest’s property can get damaged. This insurance will cover the replacement and repair costs

  • Advertising injury–Competitors or customers can sue your business for illegal advertising and marketing practices. This holiday home rental insurance will cover the settlements and legal fees

  • Personal injury–A customer or any other person can accuse you of causing reputational harm or advertising injuries. This insurance will cover settlements and legal fees

Add-Ons to General Liability Insurance for Vacation Rental Properties 

  • Property damage coverage–Your guest may accidentally damage your property. Property damage coverage will cover all the costs of damages

  • Liquor liability coverage–Protects you if your vacation rental property serves alcohol and guests become injured or sick due to intoxication

Coverage Limits of General Liability Insurance for Vacation Rental Properties 

Vacation rental insurance companies usually offer a $1 million per occurrence and $2 million aggregate limit in their general liability policy. You can request more coverage if your business profile is good. 


Can You Purchase General Liability Insurance as a Short-Term Policy?

General liability insurance isn’t only available as a long-term coverage. You can purchase this as a short term vacation rental insurance policy that lasts for hours, weeks, days, or months. Policy limits will still be the same. However, you can’t avail add-ons. 


Public Liability Insurance for Vacation Rental Properties 

Public liability insurance works the same way as general liability insurance. This vacation rental insurance for owners covers bodily injuries and property damage sustained by clients and other third parties. What makes it different is that it rarely comes with add-ons. 


Coverage Limits of Public Liability Insurance for Vacation Rental Properties 

The coverage limit for public liability insurance for vacation rental property is $1 million to $5 million. But your insurer can offer higher or lower limits depending on the policy you choose for your property.


Are There Any Limitations to Your Public Liability Insurance Coverage for Your Vacation Rental Property?

Yes, insurance companies will not cover all events. Some may exclude intentional acts such as assault. Review your insurance carefully to understand its limitations.

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Commercial Property Insurance for Vacation Rental Properties 

CoverWallet NEXT (Best) Thimble The Hartford Hiscox
Building coverage limit (minimum) $50,000 $320,000 $25,000/$500,000 $75,000 $25,000
Contents coverage limit (minimum) $50,000 $35,000 $25,000/$500,000 $75,000 $15,000
Outdoor signs Excluded $2,500 Excluded Excluded Included
Accounts receivable  Excluded Excluded $5,000/$10,000 Excluded Included
Money and securities Excluded $2,500 $1,000 Excluded Included
Lock and keys  Excluded $2,500 Excluded Excluded Included
Business interruption floater Excluded Included Included Excluded Included
Equipment breakdown floater Excluded Included Excluded Excluded Included
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded

Commercial property insurance will cover any accidental damage to your rental property. Unforeseen risks such as fire or theft can leave your property damaged. Some of the covered perils in this vacation rental property insurance include:

  • Fire

  • Natural disasters

  • Theft

  • Vandalism

  • Water damage

Add-Ons to Commercial Property Insurance for Vacation Rental Properties 

  • Flood insurance–This add-on to commercial property insurance on vacation rental property covers some natural disasters such as floods or coastal surges. You can take flood insurance to offer comprehensive cover for your property

  • Equipment breakdown coverage–Covers vacation rental equipment breakdowns. It can cover items such as air conditioning units or water heaters

  • Equipment breakdown insurance–This vacation rental damage insurance add-on will cover the repair or replacement of stoves, lighting, HVAC, televisions, and other valuable objects in your holiday house that got lost or damaged due to electrical or mechanical breakdowns

Coverage Limits of Commercial Property Insurance for Vacation Rental Properties 

The coverage limit of this vacation rental insurance policy depends on the value of your vacation rental property. Your provider will offer a limit similar to your rental property’s value.


Can You Cancel Your Commercial Property Policy?

The commercial property policy of your packaged holiday house rental insurance policy can be canceled. You might face cancellation fees or not, depending on your choice of insurance company.


A vacation rental on the beach at sunset, with insurance coverage.


Business Owner’s Policy for Vacation Rental Properties 

CoverWallet NEXT (Best) Thimble  Hiscox The Hartford
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Commercial property coverage limit  $50,000 $320,000 $25,000/$500,000 $75,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


A business owner’s policy combines several coverages in one package. It offers small businesses more comprehensive coverage at an affordable price. By bundling multiple types of coverage into one policy, a BOP can help you save money and simplify your insurance coverage. This bundled insurance coverage can include the following:

  • General liability insurance

  • Commercial property insurance

  • Business interruption insurance

Add-Ons to Business Owner’s Policy for Vacation Rental Properties

  • Customer property coverage–This allows you to reimburse the losses of clients and other third parties in case their property got lost or damaged while in your care, custody, and control 

  • Umbrella insurance–Offers extra coverage above your standard liability insurance

Coverage Limits of Business Owner’s Policy for Vacation Rentals

This vacation rental insurance coverage offers a $1 million-$2 million general liability coverage and $25,000-$60,000 commercial property coverage. 


Workers Compensation Insurance for Vacation Rental Properties

Workers’ compensation insurance covers your employees. Remember that work-related injuries or illnesses can occur at any time. It would be best to include this policy in your vacation rental home insurance package. Costs covered by workers compensation insurance are:

  • Medical bills

  • Rehabilitation expenses

  • Lost wages

  • Death benefits

Add-Ons to Workers’ Compensation Insurance for Vacation Rental Properties

  • Employers’ liability insurance–This add-on will offer extra protection against claims made by your employees. It will cover legal and settlement costs

  • Cyber liability insurance–This will cover your business from any financial losses due to data breaches or cyber-attacks

Coverage Limits of Workers’ Compensation Insurance for Vacation Rental Properties

The coverage limit will depend on the number of employees you have hired in your vacation rental property. It will also depend on the benefits your employees will receive.


What if an Employee is Injured While Off-Duty but on the Vacation Rental Property?

The workers’ compensation policy of your vacation home insurance package only covers employees while they are working. If an accident happens off-duty, this policy might not offer coverage.


Vacation Rental Cancellation Insurance

Vacation rental cancellation insurance isn’t usually included in the insurance package for commercial holiday properties. Instead, this is a component of travel insurance. Cancellation insurance can reimburse what the customer paid to the vacation rental property owner. Moreover, this can also cover the cost of tickets and other non-refundable expenses for the trip. 

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Vacation Rental Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $48 $576 $0-$500
Commercial property insurance $74 $888 $1,000-$2,000
Business owner’s policy $110 $1,320 $1,500
Workers compensation insurance $115 $1,380 $2,000-$5,000


The average vacation rental insurance cost  is $48 per month or $576 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, location, annual revenues, and number of employees. Here’s a table showing the cost of a $1 million general liability policy from the best vacation home insurance companies:

Cost per Month Cost per Year Best for
NEXT $29 $1,800 Best overall; Fastest general liability insurance for vacation rentals
CoverWallet $31 $2,400 Comparing vacation rental insurance quotes online
The Hartford $33 $3,000 Workers compensation insurance for vacation rentals
Tivly $36 $2,400 Comparing vacation rental insurance quotes over the phone
Thimble $39 $720 Short-term vacation rental insurance
Hiscox $41 $3,600 Vacation rental insurance with automatic renewal
State Farm $44 $2,400 Vacation owners who want a physical interaction with a local agent
Nationwide $49 $2,400 Vacation rental owners looking for usage-based products
USAA $54 $2,400 Vacation rental owners who are part of the military
GEICO $55 $1,800 Vacation rental owners who value convenience when obtaining insurance policies
Allstate $57 $1,800 Vacation rental property owners who want to bundle their policies with Allstate for a discount

Compare Cheap Vacation Rental Insurance Quotes Online

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Best Vacation Rental Insurance Companies

Many companies offer vacation rental insurance. Each provider has their stipulated terms and premiums. Here is a list of the best vacation rental insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance. 


NEXT Vacation Rental Insurance

Pros 

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for vacational rentals

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Filing a claim can be a time-consuming process.

NEXT has been an insurance provider in the market for several years. This company majorly targets small businesses. Customers can easily apply for insurance policies online. This company’s commercial property damage protection for vacation rentals and general liability protection can be merged into a BOP. You can further customize by adding workers comp or commercial auto insurance. 

Best for: Best overall; Fastest general liability insurance for vacation rentals 

Average cost: $29 per month

Our rating: 10/10


CoverWallet Vacation Rental Insurance

Pros

  • Compare quotes online

  • Easy online policy management

  • 24/7 customer support

Cons

  • Not an insurance company but an insurance broker

CoverWallet is an insurance company offering customers a user-friendly platform to purchase insurance policies. They offer the best deals on house rental insurance. You can get multiple insurance quotes and coverage options on their website.

Best for: Comparing vacation rental insurance quotes online

Average cost: $31 per month

Our rating: 10/10


The Hartford Vacation Rental Insurance

Pros

  • Offers Great discounts to AARP members

  • Customizable policies

  • Renowned company for workers compensation insurance

Cons

  • Limited add-ons to general liability insurance

The Hartford has been in the insurance market for almost a century. They have a solid reputation in their insurance policies. This company has a friendly customer service team. They have also partnered with AARP to offer discounts to their members.

Best for: Workers compensation insurance for vacation rentals 

Average cost: $33 per month

Our rating: 10/10


Tivly Vacation Rental Insurance

Pros

  • Comprehensive coverage options

  • Compare quotes over the phone

  • A partner of many reputable insurance companies

Cons

  • You ned to talk to an agent to get a quote

Tivly takes you to an insurance company that best fits your risk profile. You can request for quotes online. However, you’ll need to talk to an insurance agent to know what policies are actually available. Call now to compare quotes over the phone. 

Best for: Comparing vacation rental insurance quotes over the phone 

Average cost: $36 per month

Our rating: 9/10


Thimble Vacation Rental Insurance

Pros

  • On-demand policies

  • Numerous add-ons to general liability insurance

  • 24/7 customer support

Cons

  • Might not offer comprehensive insurance policies

Thimble is a company that is well-known for offering on-demand policies. This company customizes your coverage options depending on the specific needs of your business. They have a mobile app to purchase and manage your policies conveniently.

Best for: Short-term vacation rental insurance 

Average cost: $39 per month

Our rating: 9/10


Hiscox Vacation Rental Insurance

Pros

  • Worldwide coverage

  • Instant online quotes

  • 14-day money-back guarantee

  • Automatic policy renewal 

Cons

  • Limited coverage in some states

Hiscox is an insurance company that offers customizable insurance policies for small businesses. Their policies are tailored for professional service businesses such as doctors or consultants. They also offer products for other businesses, such as vacation rental properties.

Best for: Vacation rental insurance with automatic renewal

Average cost: $41 per month

Our rating: 9/10


State Farm Vacation Rental Insurance

Pros

  • Great customer service

  • Quick to handle claims 

  • Customizable options

Cons

  • You must complete the purchase of their policies via a local agent.

State Farm is a business, home, and auto insurance provider. This company is known for offering the best rates on their car insurance policies. You can also find State Farm vacation rental insurance at competitive prices.

Best for: Vacation owners who want a physical interaction with a local agent

Average cost: $44 per month

Our rating: 10/10


Nationwide Vacation Rental Insurance

Pros

  • Provides usage-based products

  • Has A+ rating from AM Best and BBB

  • Comprehensive insurance products

Cons

  • Getting a quote online isn’t quick

Nationwide offers comprehensive car, home, and life insurance solutions. They offer multiple add-on coverage for customers looking for extra protection. This company offers discount opportunities for their clients. The Nationwide vacation rental insurance products are unique.

Best for: Vacation rental owners looking for usage-based products

Average cost: $49 per month

Our rating: 9/10


GEICO Vacation Rental Insurance

Pros

  • You can purchase insurance products directly

  • Multiple insurance products are available

  • User-friendly website

Cons

  • Limited to some states

GEICO is an insurance provider that offers multiple insurance products. They also offer vacation rental insurance. All their insurance products can be purchased directly from the company. This company offers a more streamlined process of purchasing policies and obtaining claims.

Best for: Vacation rental owners who value convenience when obtaining insurance policies

Average cost: $55 per month

Our rating: 9/10


USAA Vacation Rental Insurance

Pros

  • Discounts available

  • Customizable options

  • Excellent customer support

Cons

  • Ideal for military members

USAA is a membership-based insurance provider providing products for military members and families. You can also get vacation rental insurance at an affordable rate. Inclusions in your tailored coverage can be general liability insurance, commercial property insurance, and commercial auto insurance. 

Best for: Vacation rental owners who are part of the military

Average cost: $54 per month

Our rating: 10/10


Allstate Vacation Rental Insurance

Pros

  • Multiple coverage options

  • Fast claim processing

  • Discounts available

Cons

  • You might need to get in touch with an agent for a quote

Allstate is among the largest insurance providers in the USA. They offer customizable options for your vacation rental property. They have designed an easy and efficient platform, allowing 24/7 claims processing. This company also offers multiple discounts to help you save on your insurance premiums.

Best for: Vacation rental property owners who want to bundle their policies with Allstate for a discount

Average cost: $57 per month

Our rating: 10/10

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