Navigating Insurance Essentials for Homeowners and Vacation Rental Properties

This article is written by Alliance Brokerage Corp. for the direct benefit of StayMarquis’ buyer and homeowner clientele.


Protecting your property and belongings is crucial, whether you own your home or rent a space. In this blog post, we will delve into the essentials of homeowners insurance, rental insurance coverage, and additional policies that can offer you extra peace of mind. As experts in the insurance industry, our team at Alliance Brokerage Corp. is here to guide you through understanding what these policies cover and help you make informed decisions on the coverage you need.

Homeowners Insurance: A Comprehensive Shield for Your Home

What it Covers:

Homeowners insurance provides a safety net for your property, covering damage from fire, theft, storms, and other unforeseen events. It typically includes:

  • Dwelling Coverage: Protects the structure of your home.
  • Personal Property Coverage: Safeguards your belongings inside the home.
  • Liability Protection: Covers legal fees if someone is injured on your property
  • Additional Living Expenses (ALE): Provides funds for living elsewhere if your home is uninhabitable due to a covered peril.
  • Loss of Income: If your property is offered as a rental, this coverage provides reimbursement for lost rental income if a property becomes uninhabitable due to a covered peril.

Important note for Vacation Rental Owners:

Insurance providers are increasingly wary of homeowners who decide to rent out their properties, given the increased risks associated with such arrangements. It is crucial to verify with your insurance carrier that they are amenable to this setup to avoid any potential coverage gaps or liabilities. They might enforce stringent guidelines, including an outright denial, or restrictions on rental durations and the number of tenants permitted. Proactively informing your insurance carrier of your intention to rent out your property is imperative to ensure you are adequately covered in the event of an incident. Should any complications arise, it may be necessary to transition to a more suitable policy form. Alliance Brokerage Corp. stands ready to guide you through this process, ensuring that your coverage aligns seamlessly with your rental activities.

Appropriate Coverage Limits

The purpose of dwelling coverage is to provide financial protection in the unfortunate event that your home is severely damaged or destroyed. The coverage limit should be substantial enough to cover the cost of rebuilding your home from scratch, taking into account current construction and material costs, as well as any unique features or customizations of your vacation home. It is crucial to understand that this coverage should reflect the rebuilding cost, not the market value of your home or the amount you purchased it for.

Utilizing Expert Resources

Alliance Brokerage Corp offers valuable tools in ensuring that your dwelling coverage meets these criteria. We provide a replacement cost estimator and analysis, which takes into consideration various factors that could influence the rebuilding cost of your home. This includes the size of your property, the materials used in construction, and the cost of labor in your specific geographical area. By utilizing this resource, you can have peace of mind knowing that your coverage limits are grounded in a thorough and accurate assessment, tailored to your unique property.

Umbrella Policy: Extra Layers of Security

An Umbrella Policy provides additional liability coverage beyond the limits of your homeowners and auto insurance and is highly recommended, especially if you have significant assets. Renting out your vacation home introduces additional liabilities, making robust liability coverage essential. Tenants and their guests can pose risks of injury or property damage, and potential legal issues might arise from rental agreements. Enhancing your maximum liability protection with an Umbrella Policy offers an affordable solution to counteract these additional risks, ensuring a substantial safety net for unforeseen liabilities.

Insuring Personal Items, Collectibles, and Art

Valuable possessions such as artwork, jewelry, and collectibles are typically subject to coverage limitations within a standard homeowners policy. To guarantee comprehensive protection for these high-value items, you may need to acquire an additional floater or endorsement.

Insurance for Letting Guests Use Your Vehicles or Watercraft

If you lend your car, golf cart, or boat to guests, make sure your insurance covers other drivers or operators. You might need to add additional coverage or endorsements to your auto or boat insurance policy.

Property Damage Insurance Through Safely

Partnering with Safely, StayMarquis offers an exceptional ‘StayProtected’ Program, ensuring first-dollar coverage for any physical damage or loss to your property caused by renters. Enjoy up to $5,000 coverage per rental, safeguarding both your real and personal property.


Navigating the world of insurance can be complex, but it is essential for protecting your property and peace of mind. Understanding your coverage options and ensuring you have adequate protection is crucial. Don’t hesitate to reach out to Alliance Brokerage Corp. to discuss your unique needs and find the coverage that is right for you.

Written by:
Benjamin Zack
Alliance Brokerage Corp.