Tips on Renting a Vacation Home

Many travelers head off on vacation each year without giving any thought to their insurance needs. Are you one of them? You may think that you've planned your vacation down to the last detail, but there's always something that gets left behind. Don't let it be your insurance.

What if the weather takes your vacation by storm?

A big bad storm can huff and puff and blow the house down, but it's probably not your problem. Similarly, if faulty wiring in the house causes a fire, the owner of your vacation home will need to contact his or her insurer. But in certain circumstances, you could be held responsible for damages, so review your liability coverage before you go.

It needn't be a total loss

You've been saving for months and planning the perfect getaway. But what if the luxurious beachfront home you've rented gets washed away with the tide, right in the middle of your vacation? Your vacation would likely come to an abrupt halt, but it doesn't have to be a total loss. You can purchase trip interruption insurance before you go. It's designed to reimburse you up to the amount you paid for your vacation home. But before buying it (perhaps through the agency that rented you the home), read the policy so you'll know what's covered.

There's no place like home

Homeowners insurance is designed to protect your home and many of the personal items inside. But what if you're staying in another person's home or a rental property--will you still be covered? Most basic homeowners policies will pay up to 10 percent of your policy's limit (e.g., $10,000 on a $100,000 policy) for damage to your personal property that occurs away from home. But if you're traveling for more than two weeks, you should contact your insurer to see if you need any additional coverage.

Protecting the family jewels

If you have any special or high-value items (e.g., jewelry, computer or video equipment) with you, consider adding a special endorsement to your homeowners policy to specifically cover these items. This coverage is important whether you travel or not. You'll see a slight rise in your premium, but it's a small price to pay compared with the cost of replacing that three-carat diamond you wear every day.