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Insurance for Your Vacation
Summer is vacation time for many families. But before you kick back at the beach or head for the airport, there are a few insurance issues you should consider.
If you are renting a vacation house or condo, your homeowner’s property and liability coverages apply to the rental property just as they apply to your own home – with the same limits, deductibles, exclusions, etc. If you are going to be renting a house for only a short time, you don’t need to do anything.
However, if you are renting for more than 30 days, it is a good idea to give us a call so that we can let your insurer know. In the case of a longer rental, we recommend that you get endorsements to your homeowner’s and umbrella policies. These endorsements are not expensive, and they can provide additional protection and peace of mind.
What if you are on the other side of the rental agreement? If you have a vacation property that you plan to rent, there are some things you should do to make sure you are protected. First, ask the renter for proof of insurance coverage; this allows your carrier to attempt to recover from the renter’s carrier if the renter damages or destroys your house or causes a liability claim.
At the same time, check your own liability coverage, both under your homeowner’s policy and under your umbrella coverage. Make sure that your liability limits are sufficient to protect you against any lawsuits that might arise from your renter, from people your renter invites onto your property, or even from people who come onto your property uninvited. And make sure that your policies have been extended to include all your properties, including the one you are renting.
If you are renting a car for your vacation, your auto policy covers the rental car just as it covers your personal car. The exception is for car rentals overseas; many countries require that you purchase auto insurance in that country. In that case, you need to buy the insurance the car rental company offers.
But you might choose to buy coverage through the rental agency even if you don’t have to. Buying that coverage can make the claims process go much more quickly if you have an accident, because you need to deal only with the rental agency and not with your insurer. For example, if you have an accident and you have the add-on insurance from the rental agency, you usually simply call the agency and they bring you a new car. If you have an accident under your own policy, you need to call your agent or insurer and deal with them as well as with the rental agency. As a result, you might be delayed in your travels.
In general, make your own cost-benefit analysis of the car rental agency’s insurance. If you decide that it is worth paying the additional cost in order to avoid the potential hassle, then buy the coverage. But even if you don’t, you have coverage through your personal auto policy.
If you have any further questions about insurance this summer, please contact us at 847-572-0800 or firstname.lastname@example.org.