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Why You Need Insurance For Your Vacation Rental Property

Vacation rental insurance is your safety net, ensuring your investment stays protected and your income stream stays healthy. It allows you to relax knowing you’re prepared for the unexpected, so you can focus on the good stuff. Just as you insure your primary home against unexpected events, you’ll not only need to plan to protect your investment property but also your rental income.

Owning a vacation home (also referred to as second home) that you rent only sometimes on VRBO, Airbnb, or another home sharing platform, is not the same as vacation rental investment property. If your home falls under this category, you may need a different policy. It’s important to discuss your situation with your agent at The Huneycutt Group so they can provide the right coverage for you for the right price. Having the wrong coverage when disaster strikes can leave you out in the wind.

What Does Vacation Rental Insurance Cover? 

Investment property insurance, sometimes can be referred to as landlord insurance, offers a security net for your vacation rental in a few key ways.

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Property Damage

This is a big one, especially in coastal North Carolina. Vacation rental property insurance typically protects against covered perils like fire, theft, vandalism, wind, hail, and even water damage (from things like burst pipes).

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Liability Protection

Imagine a guest tripping on the stairs, injures themselves in the pool or a malfunctioning appliance causing injury. Liability coverage kicks in here, helping cover medical expenses and legal fees if someone gets hurt on your property and sues you.

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Loss Of Rental Income

Let’s say a hurricane forces you to evacuate your property, making it unrentable for a period.  Some policies offer coverage for lost rental income during this time, helping you keep some cash flow while repairs are made.

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Vacancy Coverage

If your rental sits empty for a while, this can provide some protection.

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Code Violation Coverage

In case repairs are needed to meet new code requirements after a covered event.

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Equipment Breakdown Coverage

For things like malfunctioning pool heaters or air conditioners. (available on certain types of policies)

How Much Vacation Rental Property Insurance Coverage Do You Need?

Vacation rental insurance isn’t a one-size-fits-all deal. The coverage you need depends on a few things. Like, some lenders require a certain level of coverage. In the event of a total loss how much would you need to rebuild? Are you comfortable taking on some risk yourself, or do you prefer more comprehensive protection?

What Deductible Is Right For Vacation Rentals?

Choosing your deductible is about balancing risk and reward. Lower deductibles mean less upfront for repairs, but higher premiums. Higher deductibles save on premiums but require more out-of-pocket cash. Consider your property value, emergency fund, and claims history. Talk to your agent – they’ll help you find the deductible sweet spot that protects your investment without breaking the bank.

How Much Does Vacation Rental Insurance Cost?

Insurance costs for vacation rental properties vary and are based on the coverage you choose to carry, deductible, location address, and the size of your investment property portfolio. At The Huneycutt Group, we’ll discuss your needs and your situation with you and we’ll tailor a plan that gives you everything you need and nothing you don’t.

Need To Add More Coverage?

With The Huneycutt Group, you can add extra coverage options to your vacation rental insurance policy. Take 90 seconds to tell us about your property and we’ll get back to you TODAY to discuss your proposal and offer additional coverage options to limit your exposure. We have products ranging from flood to property management errors & omissions to additional liability limit options.

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