Are you renting or do you own a timeshare?

Melissa, Operations Analyst

Many people own timeshares and other people rent timeshares through either a rental agency or directly from the timeshare owner. Recently, we have been asked if this expense can be covered by travel insurance.  I have created 3 cases below which will hopefully help you if you are involved in a rented or owned timeshare property.

Are you renting a timeshare from a Realtor or website which specializes in timeshare rentals?

If so, you may want to cover the cost of the rental in case you are unable to travel. These types of rental agencies will give you a receipt and will have rules related to cancellation fees and penalties. If the cost of the timeshare rental is prepaid, non-refundable, you can insure the cost associated with this. Remember to include your airfare and additional prepaid non-refundable travel expenses so that if you are unable to travel for a covered reason (of course), you will be able to recover the entire cost of your trip.

Are you renting the timeshare from an individual?

If you are renting a timeshare from an individual, you will need some type of contract which lists all the occupants of the rented property, the cost, the penalties, dates, and other important information. This will be helpful and/or necessary during the claims process if you were unable to travel. Remember to include your airfare and additional prepaid non-refundable travel expenses so that if you are unable to travel for a covered reason of course, you will be able to recover the entire cost of your trip.

Do you own a timeshare and only have to pay taxes and fees associated with the timeshare ownership?

If so, you will not be able to insure the cost associated with timeshare ownership. You will be able to insure additional travel expanses such as airfare if it is pre-paid and non-refundable. Depending on where the timeshare is located, it is still a good idea to buy travel insurance even though the ownership fees are not insurable. You will still have all the benefits like baggage, travel medical, evacuation, travel delay, etc. which could help you in the even there are problems while in route and during your trip.

For all of the instances above, if you are not able to travel, each travel insurance company has different ‘covered’ reasons for trip cancellation and interruption. Please read the terms and conditions for the travel insurance policy before you buy the plan and call our Customer Care department at 800-487-4722 if you have any questions.

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