Does Vacation Rental Insurance for Renters Exist?
Yes! With more travelers than ever choosing private accommodation, like vacation rentals and Airbnb’s, many people have been curious if vacation rental insurance for renters is available to protect this type of stay, and yes it is.
What are the main components of a vacation rental travel protection plan?
These plans typically have three main components:
- Vacation Protection: Applies when a traveler needs to cancel or a trip is interrupted. With it, you can be reimbursed for lost vacation rental costs, flights, rental cars, entertainment and more. Its important to consider how much of your prepaid trip expenses you would get back without vacation insurance?
- Damage Protection: While most don’t expect it on vacation, accidents will happen and it can be a real bummer. Of course, no one wants to lose their security deposit. Most plans include vacation rental damage protection that can cover you in the case of accidental damage to the rental and reimburse you if your damage deposit is withheld due to a covered loss.
- Traveler Protection: Includes coverage for illness, injury, and other medical concerns (+COVID). Medical scenarios can range from a small fever, an ER visits or even evacuation. Additionally, most policies will include some level of travel assistance, such as Roadside Assistance and ID Theft Resolution.
How much does vacation rental insurance for renters cost?
A comprehensive travel insurance or protection plan will typically will cost about 4% to 8% of the cost of a trip, according to the U.S. Travel Insurance Association, some estimates are up to 10%. At an average of 7%, that is $70 to protect every $1000 of trip cost, which is very reasonable (Example: A $4,000 trip would cost around $280 to insure). Obviously, the exact cost of a particular policy will depend. There are many factors that come into play in determining cost of a vacation rental protection plan including;
- Length and cost of the trip
- Cost of local health care
- Medical conditions you want covered
- Amount and breadth of coverage
Which companies offer vacation rental insurance for renters?
There are many companies that offer policies designed to protect travel to rental homes and more. Here are a few of the top companies offering policies; Travel Guard, CSA Travel Protection – Generali, Travel Insured International and Berkshire Hathaway Travel Protection.
What does vacation rental insurance for renters cover?
Ultimately, this will depend on the specific plan you choose. Most comprehensive plans include three main components; vacation protection, travel protection and damage protection. Further, with comprehensive travel insurance plans, benefits and coverages are in affect before and while you travel.
Is trip interruption due to COVID-19 illness covered with travel protection plans?
There are travel protection policies available that do protect trip cancellation due to COVID-19 along with many other illnesses. However, it is important to be mindful that not all plans may cover COVID-19 or illness in general.
What if I’m simply afraid to travel due to COVID-19?
If you want to cancel your trip out of concern for the Coronavirus, you will need to have a plan with “Cancel for Any Reason” (CFAR) type Coverage. This benefit may be time sensitive coverage and not all travelers may be eligible. So check with your provider.
Will my travel companions and I be covered on the same rental protection plan?
Typically, yes, everyone staying at the reservation is insured. Be mindful that some coverages may be subject to plan maximums.
What is “Cancel for Any Reason” coverage (CFAR)?
Cancel for Any Reason is an optional benefit that may be offered as part of a comprehensive travel insurance plan. This benefit allows you the opportunity to cancel travel plans and be reimbursed for up to a percentage (in the 75% range) of the insured prepaid, non-refundable trip cost that you stand to lose.
Is “Cancel for Any Reason” always an option? What about the cost of CFAR?
This benefit is usually ONLY available within a few weeks of making your initial trip payment or deposit, so it is not always an option. Of course, to receive this benefit, you must pay an additional premium, in the 40% range.
Why do travelers purchase vacation rental insurance for renters?
- Covers losses for trip cancellations or trip interruptions
- Provides peace of mind, especially in an uncertain travel environment
- Protects against strict or ridged vacation rental cancellation policies
- Coverage for illness, injury, and other medical concerns (+COVID)
- Covers accidental damage to a vacation rental property
- Benefits & Coverages in affect before and while traveling
Is vacation rental insurance for renters worth it?
Unfortunately, this is another one of those “it depends” answers as travel insurance will not be for every traveler. When I was younger, and had a lot less to lose if anything, travel insurance did not seem to make sense to me. For many people it may never make sense. That is OK, if there is a scenario where travel losses are not reimbursed for whatever reason, that is the risk and outcome that will have to be accepted.
As I’ve become an adult and have more people in my life that depend on me my old perspective has changed. There are many more things (and people) to worry about, plus trips can become very, very expensive. I’ve become more of the opinion that I prefer to lose a little (the cost vacation rental insurance) than losing a lot if not protected with travel insurance.
I booked the vacation rental through VRBO or AIRBNB do they cover me?
No, they do not cover guest damage. Some online travel agencies, like VRBO, Expedia or Airbnb, do offer some protections and policies. As these are often changing its best to check directly with the agency. Note that these are not “comprehensive coverages” and only pertain to property damage.
VRBO, does offer travelers a “Accidental Damage Protection” that covers accidental damage to a vacation rental up to a certain dollar limit. Airbnb, alternatively, sets limits on how much a host can charge for damage, however, a guest can still be responsible to cough up money for damage. These gaps are where vacation rental insurance for renters would kick in and add value.
I’m renting a vacation home. Does my homeowners insurance cover me?
If you have an existing renters or homeowners insurance policy at your permanent residence, it likely includes two coverages that may help protect you while you’re at your vacation rental, personal property coverage and liability coverage. Personal property coverage typically helps protect your belongings whether they are at your home, in your car or on vacation with you. It’s important to know that your HO policy may apply lower coverage limits to personal property if they are damaged, lost or destroyed away from your primary home. Liability coverage from a homeowners policy extending coverage to a rental home, is very limited and in most cases not applicable at all. Liability helps protect you against legal fees and medical bills if someone is injured in your home and you’re found liable.
As a result of the limited and reduced nature of homeowners policies application to rental homes most renters looking for peace of mind purchase a travel protection or insurance plan.