Protect Your Vacation Rental Against Lost Revenue

Dated: May 6 2015

Views: 1314

Don’t Let THIS Cost You Money

If you have a vacation property that you would like to lease or sell cal me now at 77-370-8631 or visit to find out what your property is worth in today's market.

I recently herd about a nightmare at some condominiums  on the panhandle over Memorial Day Weekend? Basically there was a problem with a new A/C system and that 80 to 100 units or more were left with no cool air over what was a warm, muggy holiday weekend. Many guests were of course upset and forced to find other accommodations or cut their vacation short while owners lost a lot of money in rental income.

My point of this article is to point out that “life happens” and that as vacation rental owners, you need to be prepared.

Of course, most of us carry adequate insurance to protect us…or do we? The ‘”loss of use” clause in most insurance polices is intended to protect the policy holder in the event a property becomes unusable for a period of time. But did you know that many policies include this clause but DO NOT cover any rentals that are for less than 90 days? Many carriers will in fact write these policies without properly questioning their customer about the intended use of the covered property essentially leaving any vacation rental property UNPROTECTED.

So what can you do?


  • 1. Read the fine print – Check your policy to see if there is any verbiage referencing timelines for rentals. Does yours have a limit? What else does “loss of use” really mean to the insurance company?



  • 2. Call Your Insurance Provider – If you are unsure of what your policy means, explain your situation and ask if you are adequately covered. Specifically ask about lost rental revenues and maybe run through a few possible “what if” scenarios to be sure you are clear.


  • 3. Check With Your Property Manager – Many professional management companies will offer some type or version of insurance to cover lost revenue…sometimes even PER rental. Does your current agreement include this? Does your management company offer this?


  • 4. Ask A Lot Of Questions – Many insurance companies will not pay a claim if a pool or other amenity is knocked out of service thus affecting rentals. You might be questioning your insurance provider, property manager or even real estate agent about your coverage. ASK A LOT OF QUESTIONS. The only way to feel secure that your property is protected is to get as many questions answered as you can.


Vacation rental properties can make great investments generating strong annual income while appreciating over time. Be sure your money-making machine is completely protected in case it is ever out of service.

Contact me or call Richard McKinney 772-370-8631 if you would like any insurance agent recommendations or any additional information about vacation rental properties in Port St Lucie, Jensen Beach, Hutchinson Island or Fort Pierce. 

About the author: Richard L McKinney - Realtor, Local Real Estate Expert & Nice Guy

I’d love to hear from you. What do you think about this topic?

Richard L. McKinney P.A.

Atlantic Shores Realty Executives

Selling the Treasure Coast - Port St Lucie, Fort Pierce, Stuart, Jensen Beach, Palm City and Hutchinson Island --- Homes, Condos, Townhomes & Land.

Sell Phone:  (772) 370-8631


 Visit me on the web ....

Port St Lucie Real Estate, Homes,Condos,Townhomes and land for sale in Port Saint Lucie Florida..


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  My goal is to be your Realtor for LIFE. If you or someone you know has a real estate question, purchase or need to sell a property, please feel free to give me a call at 772-370-8631.

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Richard McKinney

I have been selling real estate in South Florida since 1998 with a specialization in homes, town homes and condos in St Lucie and Martin Counties. My service areas include the cities of Port Saint Luc....

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