Insurance for Vacation Rentals and Traveling

Vacation rental also known as travel insurance, is intended to cover medical expenses, financial pre-payments, and other losses incurred while traveling. 

Vacation rental insurance can be arranged when one books a trip, to cover the duration of that vacation, or more extensive, continuous insurance can be purchased from travel insurance companies, travel agents or travel suppliers such as cruise lines or tour operators.   

There are many companies that sell travel insurance either as a third party or as associated with a vacation destination, such as a resort, or cruise. 

Three large companies that offer this insurance are as follows:

• American Family Insurance
• Travel Guard
• USA-ASSIST Travel Insurance

It must be noted, however, that travel insurance purchased from travel suppliers tends to be less inclusive than insurance offered by insurance companies.

Insurance Coverage

Vacation rental insurance can offer specific coverage for specific types of travel.  For example, travelers will have different needs if they are travelling as a student, a businessman, for leisure, or on a safari or other “adventure” trips.

Therefore, there are many areas that travel and vacation insurance cover:

• Trip Cancellation:  This is the most important and common type of travel insurance.  It generally covers non-refundable payments or deposits a traveler has made if a trip is canceled or interrupted due to unforeseen circumstances.
• Trip Delay:  Provides reimbursement for expenses incurred when your trip is delayed due to weather.
• Accident/Sickness Medical Expenses:  Covers costs incurred due to an injury or illness that occurs while on a trip.
• Medical Evaluation/Emergency Transportation:  Covers transportation expenses when a medical emergency occurring while traveling requires transportation to a hospital or another medical facility.
  • Usually an insurer covers pregnancy related expenses if the travel occurs within the first trimester. After that, insurance coverage varies from insurer to insurer.
• Travel Supplier Default:  Covers your deposit or payments that were lost due to the financial default of a travel supplier, such as a tour organizer.
• Baggage/Personal Effects Loss or Delay:  Covers your losses due to items that are damaged, delayed or lost during a trip.

Getting Financial Help

Due to the relatively low cost of insurance and the financial and personal difficulties associated with a vacation going wrong, it is especially wise to use travel insurance for expensive trips or vacations.  Likewise, vacation rental insurance can also provide helpful services, often 24 hours a day, 7 days a week such as concierge services and emergency travel assistance.  These services can prove invaluable in times of need.  Typically travel insurance costs approximately 5-7% of the cost of the trip.  Therefore, as always, a qualified professional should be contacted whenever a consumer needs financial help and it is integral that an investor contacts a qualified professional with any questions that he may have.