Are Your Personal Assets at Risk?

The reality of renting out your home to guests is that vacation renters can, and often do, sue property owners and managers. When guests feel they’ve been harmed by the property owner’s or manager’s actions or negligence, they might find that their only recourse is to take a property owner to court.

Of course, just being the target of a civil lawsuit doesn’t necessarily mean that the plaintiff will win the lawsuit. But, even if the other party is unsuccessful and the court or jury sides with you, you may be on the hook for paying court fees and the cost of having an attorney represent you.

These expenses can add up quickly. In addition, there’s the stress of wondering how you will pay a judgment if one is ordered. Without adequate coverage, your business and your personal assets could be at risk.

How Vacation Rental Insurance Can Protect You and Your Personal Assets

When you choose to buy vacation rental insurance, you are buying more than just an insurance policy that covers damage to the property. You’re actually getting comprehensive commercial insurance coverage that also includes liability insurance protection for vacation rental property owners.

Let’s look at an example that may help illustrate the value of liability insurance protection:

John and Georgia rent your cabin for a week. On the last day of staying at your rental, Georgia slips and falls down the stairs, breaking her leg. She hires an attorney and sues you in court, claiming you owe her $100,000 in damages for her medical expenses, lost wages, rehabilitation, pain and suffering.

If you didn’t buy a commercial insurance policy designed specifically to protect you and your vacation rental business, and Georgia wins her lawsuit, you could be forced to liquidate assets, take out a second mortgage, or even sell your vacation property, just to pay your legal fees and the judgment award.

If you were covered by a CBIZ Vacation Rental Insurance Policy, you would have peace of mind knowing that the policy would cover the cost of defending you against the lawsuit. In short, your personal assets should be protected from claims in the event of a lawsuit.

Don't Leave Anything to Chance

The truth of the matter is this: if you don't insure your vacation rental property like a business, you could be exposing your entire livelihood to eventual catastrophe. Commercial liability coverage, like that offered in a vacation rental policy, leaves nothing to chance by protecting you from the unexpected...even a lawsuit from a kind couple. To learn more about how CBIZ Vacation Rental Insurance can provide valuable property and liability protection, request a free quote today!

This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

Are Security Cameras Safe to Use at My Short-Term Rental? 6 Insider Tips for New Short-Term Rental Owners