Lesley,
The reason RS offer this policy is probably because their rentals are all on either Sanibel or Captiva which, as barrier Islands are most at risk. The risk inland is as you say minimal, mind you I would guess the premiums just shot up!!!!!!!!!!!!
I didnt know Americans dont normally take out ins, but I suppose its like us inthe UK taking a break in say Bournemouth and booking direct and not thinking about insurance as its not a package deal.
It would be interesting to find out the limitations of the policy,as you say it is most likely to be if you have to evacuate that payment would be made to cover alternative accom, assuming there is some available!!!!loss of power and enjoyment will probably not be covered.
The bottom line is these things happen and someone is not always liable, sometimes you just have to get on with it and bite the bullet!!!!but I suppose not everyone thinks like this, and if as a villa owner you give people the option to pay for even limited cover then you can do no more and have covered every eventuality!!!Whether they choose to take it is up to them