Vacation Rental Insurance | Policy Highlights

The FIMS, INC. policy entirely replaces a dwelling or landlord policy. It is written as a business policy, giving the short-term vacation rental owner comprehensive coverage for their building(s), contents, commercial business liability, and business income. It also includes personal liability when the rental "doubles" as the owners primary residence.

• Custom-penned and underwritten by Lloyd's of London,
• AM-Best's Rated A
• Commercial Package Policy: coverage for building(s), contents, liability, and income
• Building(s) and contents: special cause of loss (all-risk) with replacement cost valuation
• Liability: $1,000,000/$2,000,000 in commercial general liability (business liability)
• Income: actual loss sustained business income coverage with no time limit
• Additional $1,000,000 in personal liability when vacation rental also "doubles" as a primary residence
• Enhancement coverage for damage to the building(s) and contents caused by a guest, including theft
• Enhancement coverage for animal/pet & liquor liability
• No vacancy or standard occupancy restrictions as found on homeowner's and dwelling policies
• Liability continued over amenities: swimming pools, hot tubs, bicycles, small watercraft, rec areas + more
• Sole Props, Corporations, Partnerships, LLC's, Trusts, accepted as named insureds
• Designed to entirely replace the current coverage on the property

The Insurance Rule of 3 | Vacation Rental Owners

FIMS, INC. has a successful track record of providing specialty insurance products to the marketplace for over 30 years. We have experts engaged at all levels of the vacation rental industry and understand the risks involved. The Lloyd’s vacation rental insurance policy was written with one thing in mind, YOU, the property owner. What are the risks and exposure involved and how do you properly insure them? We currently insure vacation homes, duplexes, townhouses, condos, cabins, apartments, and much more.

• LIABILITY: The single biggest exposure you have as a vacation rental owner is liability. When you open your door as the owner, you are also opening yourself up to liability risk. This liability risk is there whether you are simply renting a downstairs apartment or your entire property. What if a guest were to injure themselves while staying at your property? What if you were found to be liable? Maybe the shower was not thoroughly cleaned and a guest slipped on soap scum? Or worse, the vacation rental caught fire and resulted in a guest's death. The FIMS, INC. policy provides $1,000,000/$2,000,000 in commercial/business general liability. You are covered. And, when the vacation rental also "doubles" as your primary residence, 1,000,000 in personal liability is included in the policy.

• BUILDING & CONTENTS: The second biggest exposure you have as the vacation rental owner is the actual property itself (building and contents). What if a guest were to accidentally start a fire and burn your property down? Or steal/damage your contents? The FIMS, INC. policy insures your building and contents as a business (commercial form) with replacement cost (new for old) on special form (all risk). The reason FIMS, INC. uses a commercial form is because there are no standard occupancy restrictions as in a homeowner's policy. This means at the time of a covered loss, the property can be occupied by you the owner, friends or family, paying guests, or even be vacant as we remove the vacancy clause. It's the only way for a vacation rental owner to properly insure their building and contents.

• BUSINESS INCOME: Another big exposure you have is lost rental income, or business income. You have worked extremely hard to turn your property into an income generating short-term vacation rental business. What if a tree fell on your roof and you could no longer rent your property for the summer? Or worse, you had a total loss on the property as a result of a fire or hurricane? You need to protect the income your vacation rental generates. The FIMS, INC. policy insures your vacation rental income as "actual loss sustained" with no time limit. What this means is you are only subject to the limit of insurance you choose for your insurance policy. Some owners only insure $10,000 while others elect to insure $250,000. It's your choice as income varies significantly between owners.

Lloyd's of London | A Special Market

Lloyd’s is the world’s specialist insurance and reinsurance market, bringing together an outstanding concentration of underwriting expertise and talent. It is often the first to insure emerging, unusual and complex risks.

Around 80 syndicates are underwriting insurance at Lloyd’s, covering all classes of business. Together they interact with thousands of brokers daily to create insurance solutions for businesses in over 200 countries and territories around the world. Lloyd’s insures the majority of FTSE 100 and Dow Jones industrial average companies.

Lloyd’s enjoys strong financial security supported by excellent ratings. Visit www.lloyds.com for more information.

FIMS, INC. Services | Education First

More and more owners are turning their properties into short-term vacation rentals. This is largely due to the unprecedented growth of property managers and short-term rental advertising opportunities on websites like Airbnb, VRBO, HomeAway, TripAdvisor, FlipKey, Vacasa, and more. Consumers are using these websites and bookings are up.

​Some properties are short-term weekly vacation rentals, some are monthly, and some are even primary residences only renting out during peak seasons. Some properties are simply second homes that owners only vacation rent 4 weeks per year, and others are condos rented 52 weeks. The FIMS, INC. policy can cover them all. We strongly encourage you to educate yourself and visit our Vacation Rental Insurance FAQ's educate yourself, get a quote, and then get yourself properly insured.