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Our insurance company just told me that vacation rentals might not be covered under their general "renters insurance", so I was wondering if anyone knows of an insurance carrier that offers specific Vacation Rental insurance.
You know, ever since I started on this site and read some of the posts, I became alarmed and wondered if our policy even covered the business we were doing. Called agent right away and was advised that for our policy, transient type rentals (week-to-week) were covered, but a long-term rental would not be covered. First, if you're dealilng with your insurance company, I'd ask them to be SPECIFIC!! "Might not be covered.." - what the heck does that mean? Get them to clarify their position/coverage in writing. If you want to stay with that company, see if there's an endorsement they can add to your policy. Perhaps they'll give you a good rate on a separate business type liability policy since you'd be bundling your coverages. If they can't tell you - look elsewhere. You need to be covered and you need good customer service. Good luck!
My agent is a Farmers agent. He is great! I switched to him because I was having problems like you with coverage issues.
I emailed my agent with your question and below is his reply.
So she owns a vacation home or rents one? Either way I can help. Thanks for the thought!
Farmers Insurance Specialist
Office: 303-691-2300 ext. 24
Christopher Long [email@example.com]
If you would like me to have him call you or If you need any questions you can email me your contact at firstname.lastname@example.org
The main insurance companies that I know of right now (for vacation rental properties) are ...
* Foremost Insurance, which is owned by Farmers Insurance ... Homeowner's insurance, for people who own and live in the property and also manage a vacation rental ON SITE. This is the insurance we currently have, through an independent agent. It seems pretty comprehensive, as it is difficult to find TRUE homeowners' insurance (not commercial insurance), which is valid for a vacation rental. The policy quoted for us was about $4100 with a $2500 deductible. We purchased coverage for an annual premium of $4300 with a $1000 deductible from Foremost. However, we are shopping around to see if there is a less expensive policy that will still provide us with adequate coverage.
* Propel National Vacation Rentals Association (NVRA) insurance, which is commercial insurance specifically for vacation rental properties. If you are a homeowner living on site, you need to purchase additional renter's insurance (typically provided by Safeco) in order to cover your personal belongings and personal liability which is not associated with the vacation rental. Marlene Esparza with Propel Insurance. Her number is 206-262-4348. She is on the West Coast (Seattle / Pacific time). With both renter's insurance for our personal liability and personal property from Safeco, as well as the NVRA insurance, the quote was about $2200 with a $2500 deductible for all claims (except I think there might be an extra $$$ deductible for leaking water claims). Much cheaper than the Foremost / Farmers option ... but it's not as comprehensive, since it's not a full homeowners package. Marlene was very knowledgeable and great at answering questions via phone and e-mail and sending me all the documentation I was requesting.
* CBIZ, which offers a commercial policy ... Innkeepers insurance, designed especially for homeowners who live in the property and also rent out part of it or even most of it, as a vacation rental and/or bed-and-breakfast type of property. Call Bill Carr, 800 488-1135, or bill.Carr@cbiz.com Note that Bill is on the East Coast (U.S.). I was worried about the time difference, since I'm out in California, but Bill was great to talk to and very easy to reach via phone or e-mail. Like Marlene, Bill seems to be very thorough and a wonderful person to work with. The annual CBIZ premium quoted for us was about $2500, plus a $240 safety inspection fee which is only incurred during the first year. CBIZ is a commercial policy, too, provided by Century Surety, but ... it is reportedly more comprehensive than the NVRA insurance. Interestingly, CBIZ offers a ZERO deductible for liability claims. There is a $2500 deductible for claims regarding damage to property.
I am still shopping around, investigating and looking into the various options. I have been on vacation for the past couple weeks, so I had to put this on the back burner. Now that I am back from vacation .. if there is a better policy for us than the one we currently have, we would like to switch as soon as possible. I will give the Farmers agent listed above a call, as well!
I feel that something in the range of $2500 per year is much more "reasonable" for our property, compared to the $4300 we are paying now. To give some perspective, our previous homeowners policy for a 2-unit building (without vacation rental) was about $1300. Yes, there's extra risk with a vacation rental, compared to a long-term renter, but should it be MORE THAN DOUBLE? I don't think so ... which is why, I think, I sort of had $2600 MAXIMUM as a "reasonable" number, or what "feels right." I'm glad we are FINALLY finding some quotes that are more within the "reasonable" range.
(We've been trying to resolve this for several months now ...)
Also ... here are some other threads on this topic.
Sandie Mckinely at State Farm in Oregon is my Agent. She can only do Oregon but it means that State Farm has the policy at a great rate. I pay maybe $100 more a year than my regular Homeowner Rates.
I think you should have your agent go to Headquarters because I believe your policy is for long-term rental. I have State Farm for my Hawaii main home and also had them for our rental. Then renewal came up for the rental and in the course of answering their questions I naturally mentioned that it’s a short-term vacation rental. State Farm head office said they don’t offer that type of policy and gave me a couple of weeks to get another insurer. Logic suggests that a homeowner policy would be the least, long-term more, and short-term definitely the most.
Sorry for what is probably bad news, but you wouldn’t want a serious question on a major claim.
I booked with Marlene at Propel a couple months ago after finding out my Allstate insurance did not cover vacation rental under the landlord policy. Ask her about the $25 million dollar umbrella policy add on. It's rediculously low priced at $25 additional! I'm sure I'll never need it but for $25, add it on.
Yes, I found Marlene at Propel to be very helpful, and the price was much more reasonable than the Foremost / Farmers Insurance that we were previously paying for.
We ended up going with CBIZ becuase they provide better coverage for "homeowners' insurance" (which we needed, since we live in the building, too), in addition to the vacation rental insurance. But Propel looked like a good option, too.
Thanks so much for the detailed info! I really, really appreciate it :-) Since we do not live on site, I think I will give Propel a try...
We have 3 vacation rentals in California and finally have a policy at really covers us for this business from Century Surety Company. The rates are better than any we have had and they do not have crazy fire clearance requirements like everyone else (we are in a wildfire hazard area)
HomeAway now offers now offers HomeAway Assure insurance for vacation rentals.
The HomeAway Assure program is the same thing as the CBIZ program.
If you check the CBIZ page ...
And the page for Homeaway Assure - A CBIZ Program ...
You see that they are the same.
I purchased my insurance with CBIZ before the partnership with the HomeAway.
In summer 2012, when the CBIZ agent called to renew, I asked her if there was any advantage to signing up for this new HomeAway Assure program. She said "No, ma'am. It's the exact same thing as what you've had already."
Meanwhile, I was very happy to learn that my annual premium dropped from about $2,600 to about $1,600. I'm guessing it's because CBIZ now has a lot more customers because of the Homeaway partnership. Therefore, the premiums are now lower for everyone. Hurray! (Just my hunch.)
The best website for explaining Vacation Rental insurance is American Modern ... it clearly shows that DP (Dwelling Policy) is the appropriate insurance for a Vacation Rental.
Actually Lincoln, that description is for owners who have a second or seasonal home and do not rent them out. You would specifically need a policy that covers short-term rentals. Otherwise you may not be covered for specifics like theft.
Examples - A cabin with minimal amenities, or a house in a vacation area rented out weekly.
This example, which specifically mentions a property rented out weekly in a vacation area, was copied from the page explaining the DP .... the letters designate Dwelling Policiy as opposed to a Homeowners Policy (HO) which is not appropriate for VR's.
Here's the link to the page explaining the insurance:
Note: This thread will be much more effective if everyone identifies the type of policy by the letters as used by Insurance Standards Organization
Cascade/Propel also specializes in VR policies which are DP policies.
There may be exceptions as to why or when a VR owner might need a commercial or a business policy, and this Community would be a great place to have the discussion.
If you have a link to information that indicates that DP is not appropriate for VR's, or specific info as to the policy (please use letters) please share; I would be very interested in reading it as this is probably the most confusing area for all VR owners to deal with.
Sorry, I saw the description for DP-1 and DP-3 and didn't see the link at the bottom for rentals. This does give a good, easy to understand description.
No problem hkquinn! I am hoping those that bought from CBIZ will share the insurance industry standard letters or identification of the policies that they purchased for their VR. It would be nice to know why DP (Dwelling Policy) is appropriate for some VR's but not others. What are the exceptions? .... higher risk or owner living on property? How is the average VR owner supposed to know for sure if we have the proper coverage?