Ward, Hayden

5 Common Risk Exposures for Vacation Rental Properties

Common Risks for Vacation Rentals

Owning and operating a short-term rental property can be rewarding. However, owners have to manage numerous exposures related to lodging, and many offer amenities that can dramatically increase the number of risks. Assessing your exposures and taking the appropriate precautions can go a long way toward protecting your business.

Here are the top 5 most common risk exposures for vacation rental properties, followed by strategies to reduce these risks.

1. Property Exposures

Due to the volume of valuable items and equipment found in rental properties (e.g., bedding, furniture, HVAC systems, laundry machines, artwork), property exposures are numerous. Complicating matters, property damage can be caused by a variety of factors, including equipment failures, plumbing issues, poor wiring, natural disasters, and guests and other third parties. What’s more, water damage and fires have the potential to affect multiple rooms and floors, increasing costs and interruptions for your business.

2. Liability Exposures

When injuries occur at your property, you could be held responsible. Accidents related to slips, trips, falls, swimming pools, balconies and unauthorized access to your building are common and major sources of concern. Something as simple as a wet floor or an uneven surface can lead to costly insurance claims following an incident.

3. Equipment Breakdowns

To ensure the comfort of their guests, vacation rentals depend on functioning equipment. In the face of equipment breakdowns (e.g., HVAC system failures, power outages, appliance malfunctions), vacation rentals can experience business interruptions or even prolonged closures. In addition, equipment breakdowns can even lead to major property damage should an appliance leak or start a fire.

4. Crime

Crime can be a challenge for vacation rentals, especially as guests and vendors all have the opportunity to steal from you. To make matters worse, thieves can strike at any time – even when nobody is staying at the property, leaving owners to recoup any lost funds or valuables. Thieves do not need direct access to cash to steal from you; equipment and supplies are all fair game. In the event a guest is the victim of a theft, you could be held responsible for the damages.

5. Business Interruptions

Continuity is critical in business, and there are few things more important than continuous revenue and cash flow, particularly for small to medium-sized businesses. In fact, just one brief business interruption can be incredibly costly, often leading to serious reputational damages or long-term closures. Common interruptions include natural disasters, fires, leaks, cyber security events and vandalism.

To help reduce your chance of one of these common risks happening to your business, download our Loss Control Questionnaire. Print it and store it in a safe place to review quarterly or whenever you make changes to your vacation rental. Use it to jot down any notes about your property or as a checklist for things to be completed.

While the proper risk management practices can reduce certain exposures, no plan is 100% effective in ensuring an incident-free workplace. Our goal at CBIZ Vacation Rental Insurance is to provide your property with coverage that gives you peace of mind as you welcome guests into your vacation rental. The unexpected is why we are here. To learn more about protecting your short-term rental business through CBIZ Vacation Rental Insurance, 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.

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About Us

CBIZ Vacation Rental Insurance, a division of CBIZ Insurance Services,Inc., is the largest insurer of short-term vacation rental properties in the United States. As part of an $850 million New York Stock Exchange traded company (CBZ), we are the first broker to develop specific policy coverage to meet the needs for vacation rental properties and the amenities offered by these businesses. We have insured vacation rental properties since 2002.

The CBIZ Vacation Rental Insurance team knows insurance, specifically the risks and exposures related to short-term vacation rentals.We won't confuse you with technical "insurance speak" ~ our representatives are well versed in explaining your coverage in plain English. With hands-on, personal customer service, we guarantee swift communication and a 24/7 claims team that is ready to respond to your call any time of the day. As specialist in the industry, we leverage our knowledge and passion to ensure you and your business are adequately protected.