What Insurance Do You Need for Your Vacation Rental Property?

The purchase of investment rental vacation properties is on the upswing.

Over two-thirds of second home owners rent out their properties for a portion of each year to help cover the costs for their vacation home.

Because most vacation rental properties are located in places with higher exposure to risks – such as wildfires, flooding, hurricanes, theft, and vandalism – investors are in need of insurance that will help cover the costs.

Additionally, renting out a vacation homes opens investors up to possible losses caused by occupants. The right insurance can help cover the costs of repairs for structural damage.

You’ve put a lot of time and energy into learning what you need to know before investing in a vacation rental property.

Don’t make the mistake of assuming that a second homeowners insurance policy will cover your investment home. Be sure that you’re carrying the correct coverages.



We offer a variety of coverage options for your vacation rentals and investment properties, so you can get the right amount of coverage you need at a price you can afford.



Vacation Rental Property Insurance

If you’re renting out your vacation home, it needs more coverage than you will get from a standard homeowners policy.

Standard homeowners insurance is designed to cover properties that are owner-occupied, not properties that generate income.

Vacation rental property insurance offers a balance of coverage that protects not only your property, but also your income, investment, and business.

What Vacation Rental Property Insurance Coverage Do You Need?

When you purchase a vacation rental property it’s important to protect your investment.

Vacation rental property insurance coverage options vary, so you can find the perfect coverage to match your specific financial goals.

Comprehensive Property Coverage
Helping to pay for damage to your vacation rental, comprehensive property insurance offers coverage for most perils that aren’t excluded from your policy. (Common exclusions include flood or earthquake coverage, for example.)

Named Peril Coverage
Offering coverage for the perils specifically named in your policy, named peril coverage typically covers losses from events such as windstorm, hail, and fire damage.

Optional Replacement Cost
Helping to replace damaged items with new property, optional replacement coverage assures comparable quality and materials without depreciation.

Actual Cash Value
Covering the cost to repair or replace covered property damages, actual cash value coverage includes a deduction for depreciation based on the age and value of the home.

Liability Coverage
Protection against losses from third-party bodily injury or property damage, liability coverage also helps cover the costs of lawsuits in the event someone is injured or property is damaged on your rental property.

Loss of Rents
If a covered loss leads to a loss of rental income while the home is repaired, loss of rents coverage may be able to help you recover lost gross rental income until repairs are complete.

Occasional Rental Endorsement (or Short Term Rental)
When your vacation rental investment home sits vacant, occasional rental endorsement can help protect you against losses from vandalism, malicious mischief or other risks.

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Insuring Your Second Home

Insuring Your Second Home

With the right policies in place you can rest assured that your vacation home is covered, whether you are there or away.

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Additional Optional Coverages to Consider for Your Vacation Rental

Earthquake Insurance
If you are purchasing a home that is located in an area that regularly experiences seismic movement, you will want to be sure that you carry an earthquake insurance policy to protect you against losses.

What might first seem like minor damage from an earthquake can end up being major damage to the home’s foundation. Often the cost of repairs following an earthquake can cost homeowners as much as $30,000.

Flood Insurance
Many vacation rental properties are located within close distance to lakes, oceans, and other bodies of water. Even if you’re not water adjacent, your property may still be in a flood zone. Flood insurance policy can help protect you from financial losses if your investment ends up under water.

Water damage is no joke. If even so much as an inch of water seeps into your vacation rental home you could end up paying out for clean-up and repair costs, and water damage cleanup doesn’t come cheap.

According to the Insurance Information Institute, 1 in 50 insured homes has a water damage claim each year.

Protect Your Investment

Offering protection against the specific risks you face when renting out your second home, vacation rental property insurance ensures that your guests and your vacation property – as well as the income it generates – are protected.




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40169 Truckee Airport Rd. Ste #203
Truckee, California 96161
Phone (800) 579-6369
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