Owning a condo or vacation rentals can be a great source of income. But it also comes with risks. Property damage, guest injuries, and unexpected events can lead to costly problems. The right insurance coverage helps protect your property, your income, and your peace of mind. Here are important types of insurance to consider if you rent out condos or vacation homes:
Property Insurance
Property insurance is a must-have. It protects the structure of your condo or rentals. It also covers items you provide, like furniture, appliances, and fixtures. If a fire damages the kitchen or a storm breaks windows, this insurance helps pay for repairs or replacements.
It also covers damage from theft or vandalism. If someone breaks in and steals your TV or damages your flooring, your property insurance can help recover the cost. Without it, you’d have to pay out-of-pocket to fix or replace anything damaged.
Liability Insurance
When you open your property to guests, accidents can happen. Liability insurance protects you if someone gets hurt or their belongings are damaged during their stay. For example, if a guest trips on a loose step and breaks their ankle, you could be responsible for their medical bills.
This coverage helps with those expenses. It also pays legal fees if someone sues you. If you’re found responsible, it can cover settlements or court judgments. Liability insurance gives you financial protection and peace of mind.
Loss of Income / Rentals Income Insurance
Your rental may be your income source. If it’s damaged and can’t be rented, you lose money. Rental income insurance helps with that. If a fire, storm, or other covered event makes your property unlivable, this insurance replaces the income you would have earned during the repair period.
It can also help cover fixed expenses like mortgage payments or utilities while the property is out of service. This type of coverage is especially helpful if you rely on rental income as part of your business or personal budget.
Guest Medical Insurance
Sometimes guests get hurt, but you’re not at fault. Guest medical insurance still helps. It pays for medical bills if a guest gets injured while staying at your property, even if you didn’t do anything wrong.
For example, if a guest burns themselves in the kitchen or slips in the shower, this coverage can pay for their treatment. It helps avoid disputes and keeps guests happy, especially if they don’t have their own insurance.
Flood Insurance
Flooding can cause major damage. Most standard property policies don’t cover floods. If your condo or vacation rental is in a flood-prone area, you may need separate flood insurance.
This policy covers damage caused by rising water from storms, overflowing rivers, or hurricanes. Without it, you’d be responsible for all the repair costs. If you’re near a lake, river, or coastline—or in a known flood zone—don’t skip this coverage. Floods can happen fast and cost thousands in damage.
Umbrella Insurance
Sometimes, a claim can be bigger than your policy limits. That’s where umbrella insurance helps. It provides extra liability protection beyond your main policies. If a guest files a large lawsuit and your liability insurance doesn’t cover the full amount, umbrella insurance steps in.
This is especially important if your rental is high-end or you host many guests. The more people who stay, the higher your risk. Umbrella insurance adds a layer of protection so one lawsuit doesn’t wipe out your savings.
Final Thoughts
Condo and vacation rentals are great investments. But they come with responsibility. You’re not just protecting a property—you’re protecting your income, your guests, and your reputation.
A solid insurance plan helps you stay ready for anything. It keeps your business running, even when the unexpected happens. Review your policies regularly and update them as your property or rental business grows.
Need help choosing the right coverage? Contact Combined Insurance Service LLC at 816-847-1911. We’ll help you build a custom insurance plan that protects what matters most.