If you own a vacation home, it’s essential to secure appropriate insurance. Policies can provide coverage if you and your family intend to use the property or if you plan on renting it through a platform like Airbnb.
The knowledgeable agents at Overbay Insurance Services in Waynesville, North Carolina, can provide more information on securing the proper coverage and help you get the policy that best suits your needs. Contact us today for more information.
Vacation Home Insurance
Whether your vacation home is a cottage, cabin or condo, insurers view it as a higher risk since it is left unoccupied for extended periods throughout the year, and it may be tougher to catch a hazardous event before extensive damage occurs. Vacation home insurance is typically a separate policy from your standard homeowners insurance, and it can provide coverage for your secondary property by providing repair and recovery costs following a covered incident. These payments can help reduce your out-of-pocket expenses.
What Does Vacation Home Insurance Cover?
A vacation home insurance policy typically provides coverage for causes of loss named in the policy. Examples of perils it may cover include the following:
Policies may also provide liability coverage but check with your agent to see if your homeowners policy extends coverage to a vacation home. Depending on the vacation home’s location, you may also need to secure a policy that covers risks from floods, hurricanes or other natural disasters that may be common to the area. Contact us for more details regarding options, exclusions and limits.
Renting out your vacation home can help generate extra income, but it’s essential to research how insurance coverage works in these arrangements. Typically, standard personal insurance (e.g., insurance for your primary home or vacation home) won’t provide coverage for business activities beyond occasional rentals, and you will generally need to secure commercial insurance to receive adequate coverage.
Airbnb provides some insurance for hosts through its AirCover program. As of October 2022, AirCover provides coverages at no additional costs to hosts who list their home on the Airbnb platform, including the following:
· Host liability insurance
· Host damage protection
· Pet damage protection
· Deep cleaning protection
· Income loss protection
However, even with these coverages, gaps may exist as the program is subject to limitations, conditions and exclusions.
Your agent can help you evaluate the provided insurance and determine if it meets your needs. Your agent may also recommend securing other insurance policies to give you broader coverage.
Contact Us Today
The Overbay Insurance Services team is ready to help you get the right insurance for your vacation home and its intended uses. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.