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.
| 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
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
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.Â
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.Â
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.Â
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.
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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| 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
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
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.
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.
