How Does Running a Vacation Rental Impact Your Homeowners Insurance?

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Vacation rentals are a unique type of property. They’re not their owners’ primary residences — but their owners may choose to live or vacation in them occasionally while renting them out to other travelers in need of lodging throughout most of the year. Depending on how often an owner uses it, their vacation rental could rightfully be considered both a home and a business.

Owning and operating a vacation rental can be a lucrative prospect and an enjoyable endeavor in many ways, but the logistics of figuring out an appropriate insurance policy for this nontraditional type of property can complicate things. Homeowners insurance policies typically cover a person's primary residence, and landlord insurance covers a rental property that houses long-term tenants and isn’t owner occupied. But what kind of insurance policy covers the unique case of a vacation rental?