Vacation Rental Property Insurance: What Every Cabin Owner Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 10
- 3 min read
Owning a cabin as a vacation rental can be a rewarding investment—but it also comes with unique risks. Whether nestled in the mountains, tucked beside a lake, or deep in the woods, cabins are exposed to weather, guest-related damage, and liability concerns. That’s why having the right vacation rental property insurance is essential.
At Wexford Insurance, we specialize in protecting rental property owners—including cabin owners—through tailored insurance solutions that cover both short-term and long-term rentals. Here’s what every cabin owner should know.
Why Standard Homeowners Insurance Isn’t Enough
Many cabin owners assume their homeowner's policy will cover rental activity. Unfortunately, most policies include a business activity exclusion, meaning any claim related to renting out your cabin could be denied.
If you’re renting your cabin through platforms like Airbnb or Vrbo, or even privately, your property is considered a business. That changes everything about how your insurance should be structured.
What Does Vacation Rental Insurance Cover?
A comprehensive vacation rental insurance policy for cabins typically includes:
Property Damage Protection: Covers damage caused by guests, storms, fire, vandalism, and theft—even during vacancy periods.
Liability Coverage: Protects you if a guest is injured or their belongings are damaged. This includes legal fees and medical expenses.
Loss of Income: If your cabin becomes uninhabitable due to a covered event (e.g., fire, flood), this coverage reimburses lost rental income.
Guest-Caused Damage: Covers accidental or malicious damage caused by renters—something homeowners' insurance usually excludes.
Common Risks for Cabin Rentals
Cabins face several risks that make specialized insurance crucial:
High Turnover: Frequent guest stays increase wear and tear and the likelihood of damage.
Remote Locations: Cabins are often in areas prone to wildfires, floods, or snowstorms, which can complicate claims and increase premiums.
Liability Exposure: Slips, falls, or injuries due to unsafe conditions can lead to lawsuits.
Vacancy Periods: Unoccupied cabins are more vulnerable to vandalism, frozen pipes, and unnoticed damage.
Best Practices for Cabin Owners
To protect your investment and reduce insurance costs:
Conduct Regular Inspections
Install Safety Features
Use a Rental Agreement
Bundle Policies
Why Choose Wexford Insurance?
Wexford Insurance offers customized rental property insurance for cabins, vacation homes, duplexes, condos, and more. Whether you rent seasonally or year-round, we provide coverage that adapts to your needs.
We’re not just here to protect your property—we’re your partner in building a successful rental business.
Final Thoughts
Cabin rentals offer a unique charm and income opportunity, but they also come with distinct risks that standard insurance policies don’t cover.
With Wexford Insurance, you get more than a policy—you get a partner who understands the rental market and offers solutions tailored to your needs. Whether you're just starting out or managing multiple properties, we’re here to help you succeed. Connect today!
FAQs
Q1: Can I stay in my cabin if it’s insured as a vacation rental?
Yes. Most business policies allow owner occupancy without affecting coverage.
Q2: What’s the difference between landlord insurance and vacation rental insurance?
Landlord insurance is for long-term tenants. Vacation rental insurance covers short-term guests, liability, and income loss.
Q3: Does Airbnb or Vrbo insurance replace my own policy?
No. Their host protection is limited and only applies during booked stays. You still need your own comprehensive policy.
