Summer Rental Insurance: Yours, Theirs or Both?

It’s summer! Some families spend their summer holidays at a luxury resort, while others stake a tent in the woods. And then there’s the increasingly popular option of renting a vacation home. This home-away-from-home getaway can provide a great setting for creating family memories – as long as you ensure you have the insurance coverage you need, because this responsibility rests with both the renter and the homeowner.

Proper insurance for you: As the traveler, you should be covered by your homeowners insurance policy in two ways:

  • Liability: If you accidentally damage someone else’s property, your policy will help pay for the damage. So if the kids’ indoor soccer game gets out of hand, you’re covered.
  • Personal property: Your homeowners policy will protect your personal belongings, even away from home. However, coverage limits may be lower in this case. Additionally, recreational equipment such as boats usually requires a separate policy. Consult with your agent to ensure you have the coverage you need.

Proper insurance for them: The owner of the rental property should have proper coverage for the home. Be sure to verify that the owner has a homeowners policy with appropriate liability coverage, in case anyone is injured on the property as a result of owner negligence. The owner’s homeowners policy should also cover any damage to the home that occurs from natural disasters.