What do you carry for insurance on Vacation Rental properties?
@Karen Margrave we bite the bullet and pay for insurance thru a local insurance agent. The coverage is specific for short term rentals including missed rents from oil spill,... It is not cheap and runs approx. 7K per house. The companies seem to be smaller with names that most would not recognize.
We have property damage and 1M liability (may be 2 million now not sure we may have increased it) with CBIZ
We have 4 policies, rates range from $850/yr ($85K property) to $1700/yr ($300K property)
Covers INCOME LOST due to fire or other damage for up to 2 years of proven income PLUS the replacement cost of building. Hard to beat the rates and coverage. They get a high rating too.
I recently got a quote from CBIZ vacation rental program and for my property in MA it's about the same price($2,600) You are going surplus which I'm not a fan of as claims service can be lower. As long as the carrier allows your home to be used as a rental they can't discriminate a short-term or long-term rental without a clear exclusion doing so.
I use Rental Guardian and make the renters buy the policy so I don't have any cost and I am still protected it costs them about $39 or more.
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