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Is Your Vacation Rental Adequately Insured?

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Getting insurance to cover renting out a vacation cottage can be tough here in Ontario. Some companies won’t touch short term rentals, others impose restrictions on the annual rental period or occupancy levels, and rates can be eye-watering. However, finding a good insurance broker who is prepared to do the leg work can uncover a reasonable solution. I’m sure the situation is equally challenging in other parts of the world and I’d be interested to hear your experiences.

What is concerning though, is the amount of owners who rent without telling their insurance company. The usual comment is that they are renting to family and friends so they don’t need any additional cover. I’m not an insurance expert and am open to being corrected, but I’m pretty sure that standard cover may not be enough to support a claim should anything occur during a rental that merits a claim.

Reading about the vacation home on Tybee Island that was engulfed in flames last week while occupied by rental guests, was enough for me to check on my rental insurance and make sure our coverage was sufficient. We all take a risk when we rent our homes and cottages, but being under-insured or not insured at all for rental activity, to save a few dollars, is clearly unwise.

Photo on Flickr by HAM guy