If you want to avoid a vacation rental nightmare, you’ve probably considered travel insurance. … [+] Here’s what you need to know.
Anything can happen in a vacation rental. And sometimes, anything happens.
The rental nightmares range from small annoyances, like ant infestations, to big ones, like floods. As a consumer advocate, I’ve seen it all.
Ants were my unwanted roommates in an apartment in Athens this summer. I had barely put a slice of baklava on a plate when they surrounded it, ready to take it down. And by “take it down,” I mean like those giant red ants in Indiana Jones and the Kingdom of the Crystal Skull. There was no escaping them – until the vacation rental manager sent an exterminator.
I’ll never forget the cabin in Pennsylvania that almost washed away in a flood a few summers ago. After a flood, I thought my car would float down the nearby river. Fortunately, it didn’t.
Whenever I think about these disasters, I ask myself: Would travel insurance have made any difference?
Sometimes the answer is yes. And it turns out travelers are thinking the same thing lately.
“With domestic travel on the rise, we’ve seen increased demand from travelers looking for independent vacation rental damage coverage,” says Katie Crowe, spokeswoman for travel insurance company battleface.
But is insurance even necessary for a vacation rental stay? What does it cover, and how is it similar to – and different from – regular travel insurance?
Yes, you probably need insurance for your vacation rental
If you’re staying in a vacation rental, travel insurance is a must, says Christina Tunnah, the global general manager of World Nomads Group. See the article : Has remote work changed the nature of travel?. After all, you probably live in a home worth hundreds of thousands of dollars.
“Travelers need to be 100% sure of the liability they have if they damage a home,” she says. “What happens if they accidentally flip your car into a fence? Does the home owner’s insurance cover them for that?”
The answer is: not always. Fortunately, some individual travel insurance plans have coverage for third-party liability. That’s something worth looking at when renting a vacation home, she says.
But that’s not the only reason to consider insurance. Angela Borden, product marketing strategist with Seven Corners, says most travelers renting a vacation home or condo are concerned about protecting the money they spent on the rental and airfare.
“These expenses usually represent the largest part of the cost of a vacation for this travel scenario,” she says. “Given this, travelers should carefully review the travel insurance document, focusing on the covered reasons for trip cancellation.”
Two types of insurance coverage for your vacation rental
“It’s important to distinguish between two types of vacation rental insurance,” says Stan Sandberg, the co-founder of travel insurance website TravelInsurance.com.
Trip cancellation coverage
A travel insurance plan with trip cancellation coverage can protect those costs if a policyholder has to cancel for a covered reason such as an unexpected illness, including COVID, or hurricanes,” says Sandberg. On the same subject : 9 Ways to Invest in Retirement Real Estate.
Rental damage coverage
If something happens to your rental while you’re in it—for example, you spill red wine on the white tufted carpet—damage coverage can help cover the costs. To see also : Because I always visit local supermarkets when I travel. Note that coverage does not include intentional damage, such as a raucous party.
Both are becoming more popular, Sandberg says. “We have seen a significant increase in travel insurance purchases to cover prepaid and non-refundable vacation rentals,” he says.
How does travel insurance cover vacation rentals?
Most vacation rental coverage is included in a broader travel insurance policy. Here are some of the types of coverage you can get:
Travel insurance can also cover you for items that go missing at a vacation rental, says Joe Cronin, president of International Citizen Insurance.
“You can also make a claim on your homeowner’s or renter’s insurance, but making a claim can cause your premium to increase,” he says. “Therefore, your travel insurance is your first line of defense.”
I have details on how to find insurance coverage — and avoid a vacation rental nightmare — in my comprehensive guide to vacation rentals.
What doesn’t travel insurance cover for vacation rentals?
Unfortunately, travel insurance doesn’t cover everything. Here’s a list of things your insurance won’t cover:
This is only a partial list of items not covered by travel insurance. Remember, travel insurance names the perils you are covered for. If it is not specifically named, there is no coverage for it.
What’s the most common kind of insurance claim?
Of all the covers you can get with your travel insurance, perhaps the most important is for trip cancellation.
“Trip cancellation is still, by and large, the number one type of claim for any type of vacation — vacation rental included,” says Carol Mueller, vice president of Berkshire Hathaway Travel Protection. “In addition to the standard trip cancellation coverage, vacation renters are also interested in making sure the plans they purchase include security deposit protection should unexpected damage to the property occur.”
One of the best-kept secrets about travel insurance is that it can cover non-refundable costs if a destination becomes uninhabitable, according to Daniel Durazo, director of external communications at Allianz Partners USA.
“If a vacation rental is located where a natural disaster has occurred, it may become uninhabitable due to loss of power or water,” he says. “Be sure to document the problems and then file a claim with your travel insurance company for your non-refundable costs, which may include the cost of the rental and travel expenses.”
Travel insurance covers more than vacation rentals
Most travel insurance policies are not specifically designed for vacation rental guests. But they cover hazards that may affect a guest.
Say you have a vacation rental on the ocean, and the beach closes. Your travel insurance may cover this.
“Some travel insurance plans have travel inconvenience benefits that can pay up to a stated maximum benefit amount for situations such as beach closure if the beach at the traveler’s destination is closed by government authorities for 24 hours or more,” explains Sherry Sutton. , vice president of marketing and communications at Travel Insured International.
You can sometimes add vacation rental protection to your travel insurance. For example, travel insurance startup Faye has a vacation rental option in any of its basic plans. It covers accidental damage to your rental, such as spilled wine, broken dishes and broken appliances. All its policies also cover rental properties
“That means if the keys to your vacation rental property are lost, stolen or damaged, and you can’t access the property for three hours or more, you can be reimbursed up to $200,” says Doron Samish, Faye’s vice president. product at Faye.
Who needs insurance for their vacation rental?
I have spoken with several travelers who have purchased travel insurance for their vacation rental. They said that while they were worried about a vacation rental nightmare, they were just as interested in other coverage that insurance offers.
For example, Colleen Carswell, a security specialist from Bel Air, Md., recently purchased a policy through Allianz Travel Insurance for a beach rental. The policy covers the usual perils, such as lost luggage and travel interruption.
“What we’ve personally found most useful about travel insurance is the medical coverage,” she told me. “We were on vacation a few years ago when my husband needed to go to the emergency room. And another time, my one-year-old needed to go to urgent care. Both times we were out of our health insurance network.”
The Allianz policy covered them.
Buying advice for vacation rental insurance policies: read carefully
One final note: You’ll want to read your policy carefully before you buy.
“The best advice here is to review the plan benefits before buying,” says Brian Rock, national director at VacationGuard.com. “Some plans require all people to be named. Other plans automatically extend protections for travel companions.”
Really, that. I’ve seen far too many “gotchas” during the claims process, where someone forgot to name everyone on the policy or overlooked some other seemingly insignificant detail. Because believe me, if you ever have to file a claim on your vacation rental stay, your travel insurance company won’t leave out any detail.
Most travel insurers no longer cover Covid-related cancellations unless it’s because you get Covid. It’s even more difficult when you argue that you should have money instead of a voucher, because the insurer can claim that the voucher is the refund, so to them the case is closed.
Does travel insurance get more expensive closer to departure date?
Unlike other aspects of your travel experience such as airline tickets or hotel room rates, the price of travel insurance does not increase the closer you get to your travel date. There’s no financial penalty if you wait to buy travel insurance (except for those bonuses, of course).
Should you buy flight insurance 2022? Summary: You probably need travel insurance if you’re going anywhere in 2022. If you take a lot of shorter trips, you may benefit from an annual policy. Or you can insure each trip individually, which would cost more but also offer more comprehensive coverage.
How far in advance does travel insurance need to be purchased?
If you’re wondering when you should buy travel insurance, the simple answer is, “as soon as possible.†Ideally, you’ll buy coverage no later than 15 days before your trip.
How long do you have after booking a trip to get good insurance?
Typically, to be eligible for the pre-existing conditions waiver, you should purchase your insurance plan within 10-21 days of putting down any money for your trip.
Can I buy travel insurance on the day of departure?
You can buy travel insurance at any time before the date of your departure. However, your plan choice may be limited if you wait until the last minute.
Who is the best travel insurance provider?
Best Travel Insurance Companies of 2022
- Best Overall: Travelex.
- Runner Up, Best Overall: Allianz Travel Insurance.
- Best Value: InsureMyTrip.
- Most Comprehensive Coverage: World Nomads.
- Best for Seniors: HTH Travel Insurance.
- Best for Cruises: Nationwide.
- Best for Medical Coverage: GeoBlue.
How much does international travel medical insurance cost? How Much Does Travel Medical Insurance Cost? When you’re covering the cost of a vacation, the thought of paying for health insurance on an international trip may seem like an unnecessary expense. Fortunately, travel medical insurance is usually very affordable. Policies average between $40 and $80.
Is it worth it to buy travel protection plan?
Although you may pay 5 to 10 percent of your trip cost for travel insurance, travel insurance is often worth the investment because of its potential to help reimburse you for hundreds of thousands of dollars of covered travel-related expenses such as emergency evacuation, medical bills, and cancellation-related costs of travel and …
How expensive should travel insurance be?
While travel insurance costs vary, the average is somewhere between 4-12% of your total trip cost*. If you are on the fence, then consider this: an emergency situation can cost tens of thousands of dollars, but the insurance plan could be a fraction of your trip cost.
Does travel insurance cover if you change your mind?
Canceling for any reason offers travelers the most cancellation flexibility and is the only coverage option available to cover a travel scare. To see available plans that may have coverage for COVID-19, select the "Top Picks for COVID-19" filter under Plan Type during the quote process.
What does travel insurance cancel for any reason? Cancel for any reason (CFAR) is an optional benefit of travel insurance coverage that offers the opportunity to cancel travel plans for reasons other than those listed as “covered reasons†in a policy.
Does travel insurance cover if I cancel?
Most plans cover you if you cancel because of: You are covered if you, your travel companion or your family member become ill or have an injury or die.
What is not covered by a travel insurance?
Losses due to venereal disease, AIDS virus, pregnancy (except complications of pregnancy), or miscarriage. Losses due to mental, psychological or nervous disorders including anxiety, depression, neurosis or psychosis. Losses due to nuclear radiation or radioactive contamination.
