Do I Need Specific Insurance For My Vacation Rental?

Vacation Rental Insurance in Florida & Alabama ~ Join Southern

If you are a new vacation rental owner, you may be wondering if you need insurance for your vacation rental. In a word, the answer is yes! Just like you would with your own home, you will need insurance for your second home. And, just like with your primary home, there will be costs, upkeep, and liability concerns to keep in mind.

Vacation Rental Insurance in Florida

According to Nationwide Insurance, you will need business insurance over a homeowner’s policy since you will be renting out the property in order to gain revenue. Most insurance companies will consider this a business activity and therefore not issue a homeowner’s policy. Since we manage properties along Northwest Florida and Coastal Alabama, it’s important to partner with your insurance agent on the best insurance policy and what that coverage looks like for vacation rental insurance for Florida and Alabama properties.

In addition to vacation rental insurance in Florida and Alabama, you will also need a vacation rental license in order to rent your home out as public lodging. Vacation rental licenses in Florida are classified by a single, group, or collective license, depending on whether a single home, units in a group of buildings, or a group of houses or units found in separate locations. Group and collective licenses must be licensed to a licensed agent. This is someone that the property owner has authorized, through a rental agreement or contract, to hold the property out for rent for transient lodging.

Meanwhile, in Alabama, all property owners with within the city’s corporate limits are required to submit a business license application. Since there are certain rules for the cities of Gulf Shores and Orange Beach, it’s important to understand city ordinances before purchasing your vacation home.

Do you have questions about Alabama or Florida vacation rental management? Contact us today!