What is Vacation Rental Insurance?

Malcolm Tatum

Vacation rental insurance is a type of insurance coverage that minimizes the risks of traveling. As part of the broader range of travel insurance options, vacation rental insurance provides protection in the event that lodgings secured as part of the vacation or holiday travel are unavailable for some reason. The coverage will help to defer expenses incurred by the traveler, as well as aid in securing alternative lodgings. Insurance of this type will often assist in covering any charges that result from last-minute cancellations of reservations on the part of the traveler, rather than the traveler having to pay those fees out of pocket.

In some instances, it may be wise to purchase vacation rental insurance for your trip.
In some instances, it may be wise to purchase vacation rental insurance for your trip.

Vacation rental insurance comes in handy in a number of scenarios. Should changes in circumstances prevent the traveler from leaving for his or her vacation according to schedule, this will often result in the need to cancel and rebook lodgings for a later date. Depending on the amount of advance notice provided, the owner of the lodgings may assess fees, or withhold a portion of the amount prepaid for the lodgings as payment for the inconvenience. When this is the case, a claim can be filed with the provider of the vacation rental insurance, effectively offsetting the losses incurred as a result of the delay.

Insurance of this type can also be very helpful in the event that a traveler must cut his or her vacation short. The coverage will aid in deferring expenses associated with settling balances due with travel agencies and others involved in the rental of properties during the vacation. In some cases, the insurance is part of a larger bundle that will also aid the traveler in scheduling emergency flights home. This is especially true if circumstances such as sudden illness or the death of a loved one are the reasons behind the shortened stay.

The cost for vacation rental insurance will vary, depending on the scope of the coverage required by the traveler. The duration of the vacation and the number of locations involved in the travel itinerary will impact the overall cost of the coverage. Most policies of this type only allow a certain window of time in which to file claims, and many will require documentation to support the statements made as part of the claim process. In some cases, providers of vacation rental insurance will pay directly to the parties issuing the charges. More often, the traveler settles those expenses with vendors and is reimbursed by the insurance provider.

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