Vacation rental managers will typically carry their own commercial general liability insurance. This protects them in the event of an incident occurring on the premises of a home they manage.
That said, it’s still imperative for a property owner to protect their own interests by holding a separate commercial general liability policy. We generally recommend that owners carry at least $1 million in total coverage.
The best insurance programs for vacation rentals tend to offer threefold protection:
- Commercial liability coverage – This protects owners from any incident involving a guest, whether it happens on or off the premises.
- Property and contents coverage – In case something happens to the home or its furnishings.
- Loss of income coverage – If there’s an issue that prevents you from short-term renting the property, this coverage helps recoup the actual revenue lost.
One insurance provider we like to recommend is Proper Insurance. They offer comprehensive policies tailored to short-term rental owners and cover all three of the above areas. Their loss-of-income coverage is especially strong—it covers actual losses sustained, with no time limit, up to your selected coverage amount.
At Vinifera Homes, we maintain our own insurance policy and strongly advise our clients to hold their own commercial liability insurance as well. In addition, we provide accidental damage coverage for guest stays through a partnership with a company called Waivo.
Waivo offers $3,000 in coverage for incidental damages that may occur during a guest’s stay—for example, a wine spill on a rug. What’s unique about Waivo is that it offers first-dollar coverage with no deductible for either the owner or the guest. If damage occurs, Vinifera will handle the entire claims process on behalf of the owner.
This layered approach—our own insurance, the owner’s commercial liability policy, and Waivo’s damage protection—ensures a high level of coverage and peace of mind for both property owners and guests.
Written by Anish Patel, Head of Owner Relations at Vinifera Homes (anish@viniferahomes.com)
