Insuring a 30A Vacation Rental — What Owners Need to Know
Your homeowners policy probably will not pay
Standard HO-3 homeowners policies are written for owner-occupied dwellings. The moment you list on Airbnb, VRBO, or hand the home to a property manager, most carriers consider that a material change in risk. Claims involving paying guests are routinely denied — and many policies are cancelled mid-term when the carrier discovers rental activity through a Google search of the address.
DP-3 dwelling: the right product
A DP-3 dwelling fire policy is built for non-owner-occupied homes. It covers the structure on an open-perils basis, includes replacement cost on the dwelling, and explicitly contemplates rental use. Pair the DP-3 with commercial-grade general liability and you have proper coverage.
Fair rental value (lost income)
After a covered loss, fair rental value coverage replaces the income you would have collected during the repair period. On a 30A property generating $80K–$200K annually, this is often the most valuable coverage in the policy. Standard HO-3s do not include fair rental value at meaningful limits.
Liability — and why $1M minimum
A guest slip-and-fall, pool injury, or balcony incident can easily produce a multi-million-dollar claim. We write rental properties with at least $500K liability — and recommend $1M paired with a $2M+ umbrella for most owners.
LLC ownership and named insured
Many 30A owners hold property through an LLC for liability separation. The LLC must be the named insured on the dwelling and liability policies, with members and managers added as additional insureds. We structure this every day.