Commercial Homeowner’s Insurance For Short-Term Rentals
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Replace your homeowner’s or landlord policy with Proper Insurance®
One policy that covers both personal and commercial use of your short-term rental
Lloyd’s of London insurance developed for Airbnb & VRBO properties
Comprehensive coverage for building(s), contents, income, and liability
Short-Term Vacation Rental Insurance Policy Highlights
The Proper Insurance® policy replaces a homeowner’s (HO) or landlord (DP) policy. It is written as a business policy, giving the short-term vacation rental owner comprehensive coverage for their building(s), contents, commercial business liability, and business income. It also includes personal liability when the rental “doubles” as the owners primary residence.
The challenge was triple use of the properties; as most vacation rental properties are used for personal use, commercial short-term rental use, and at times unoccupied. With trademarked endorsements, the Proper Policy covers you and your property for all three uses. Think of it as a homeowner’s policy, a landlord policy, and a business policy all wrapped into one!
It’s all-inclusive insurance that was custom-penned with Lloyd’s of London for the unique risks of short-term vacation rental properties. It’s the most comprehensive insurance available today for vacation rental property owners. Available in all 50 states.
- Underwritten by Lloyd’s of London, AM Best’s Rated A
- Commercial Package Policy: coverage for building(s), contents, liability, and income
- No vacancy or standard occupancy restrictions as found on homeowner’s and dwelling policies
- Sole Props, Corporations, Partnerships, LLC’s, Trusts, accepted as named insureds
- Designed to entirely replace the current coverage on the property
- All 50 states
- $1,000,000/$2,000,000 in commercial general liability (business liability)
- $1,000,000 in personal and advertising injury
- Liability continued over amenities: swimming pools, hot tubs, bicycles, small watercraft, rec areas + more
- Enhancement coverage for animal/pet, liquor, assualt/battery, abuse, molestation, and invasion of privacy
Building & Contents
- Special cause of loss (all-risk) with replacement cost valuation
- Enhancement coverage for damage to the building(s) and contents caused by a guest, including theft
- No limit on damage caused by a renter
- Any coverage limit
- No limit on theft
- Special cause of loss (all-risk) with actual loss sustained valuation
- Pays on revenue vs income
- Any coverage limit
- No time limit
Real Proper Insurance® Customers; Real Reviews
How do you review brilliance. I’m still in shock from the trauma and teams it took to keep our home safe. This insurance company is not just insurance company they have now become part part of our family. They watched over us, they protected us, and they asked how we were doing. When I arrived with only a few days to see my house, I saw the two firefighters in our garden collecting their hoses, and all I could do was burst into tears. My review was only thank you thank you thank you for saving our home!Kim Kieler
We’ve had a great experience with Proper Insurance. We had difficulty finding affordable homeowners insurance that covered our VRBO. They’ve been tremendous to work with – prompt responses and importantly, a fair claim check after we had storm damage. We recommend them to everyone.Katherine Harley
Our experience with Lloyd’s has been truly incredible. We own two AirBNBs and were really looking for insurance designed to meet the needs of a short term rental property owner. This is it! Everyone with whom I’ve spoken has been kind, courteous and professional. What’s more, they seem so much more knowledgeable about short term rentals and insurance coverage in general than most insurance reps with whom I’ve dealt over the years. Unfortunately, we needed to file a claim due to water damage and the entire experience could not have gone better or more smoothly. I was contacted immediately, an adjuster was send the same afternoon, the claim was handled quickly and covered completely. We ultimately needed an entirely new HVAC system. Not only was the system itself covered, we are being reimbursed for lost earnings as well. We couldn’t be happier with the customer service and coverage we’ve received with Lloyd’s. Truly a 5-star company!Michelle McRae
I called Cade Bachman after an extensive search for insurance to cover my two vacation rental properties. Cade has established my trust through his easy rapport and thorough knowledge of the vacation rental insurance industry. He has promptly responded to all of my numerous questions and has been a partner for me as I establish my vacation rental income while protecting my family’s investment. Every property owner who is thinking of entering the vacation rental business would be lucky to have Cade on their side.Brian Bradford
It’s about time a company bridged the gap between homeowners insurance and commercial insurance. Within three months, I had to file a claim and there were zero issues getting a check in a timely manner. They’ve been nothing but perfect!Mikel Hubbard
My experience with Proper has been exceptional because of Cade Bachman. In researching possible insurers for our Ko Olina property, Cade was thorough, extremely helpful and has great follow up. He accommodated and beat competitor rates, and made something as complicated as insurance easy to understand. I appreciated his working with me, and absolutely recommend him to anyone!Susan Henry
Our clients love Proper Insurance. Many of them are not aware of the limitations of their current insurance, and getting them in touch with Proper has solved all and any concerns and questions they had. It’s the ultimate peace of mind to know that, no matter what happens, no matter how many guests go in and out of their property, things will be in good hands, should any problems ever arise. A life saver for them – and us.Markus Scharnowski - Founder, GoNitely
Being able to provide Proper Insurance as a resource to our vacation rental clients is important, especially for the luxury homes we manage. Many of these owners have specific needs to which Proper sometimes is the only choice. Because Turnkey Vacation Rentals is in over 30 markets across the USA it is good that Proper can offer insurance in all 50 states. The service my clients have received from Proper Insurance has given me ease of mind that their needs are being handled.Pete Slaga - General Manager, TurnKey Vacation Rentals
Worked with Ashley on a policy and she was extremely helpful. Highly Recommended!!! I had to make a claim from a recent theft with my Vacation Rental Insurance. I had art work covered that typically is not covered for more than $2500. If you have valuables you should consider this policy if you want coverage.Joseph Collura
When I first decided to have my house become a luxury rental property, I contacted Proper Insurance to get a quote. They responded quickly and followed up with me via their account representative Ashley Price. Ashley was incredibly professional and even sent a very lengthy email to me at my request breaking down the differences and similarities between my homeowner’s insurance policy and Proper’s policy. It was a very time consuming task on her part and it was greatly appreciated by me. When I decided to go with Proper it was because Ashley had taken the time to educate me thoroughly on the policy and as a result I felt it covered the property in full.Mark Hill
I had a great experience working with Proper Insurance, seeking a policy for our primary residence that would also cover short-term rental property owners. They answered all my questions and presented a competitive quote within a few days. Staff is extremely friendly and responsive even if you file a claim. The agent and the adjuster contacted us right away after we had some storm damage. They’ve been easy to work with; my claim was resolved fair and quickly. I recommend them to everyone who is looking for a combined homeowners and short term rental insurance.Michael and Barbara Schirmer
Working with Proper Insurance is always a pleasurable experience. With so many laws changing around the space of short-term rentals, I have confidence that Proper is always on the forefront of the legislation. There is no ambiguity in any of the policies I carry with Proper. The team always takes the time to walk me through everything I need to know. With the backing of Lloyd’s of London, my mind is always at ease. I couldn’t recommend Proper Insurance more!Gabe Krebs
This was my first time working with Proper Insurance. I had both telephone conversations and emails with them. They worked closely with me to answer all my questions which resulted in my taking out a policy with them for my AirBnB.Robert and Laura Noyes
After having closed a state of the art recording studio (which was attached to a beautiful four bedroom home), I thought the hardest part would be to dissolve the business and figure out what to do next with the space. However, deciding to turn the space into a peaceful destination via Airbnb turned out to be the easy part! The true difficulty came in figuring out how to do that with property insurance. Who knew?! My previous insurance carrier was not willing to cover my Airbnb activities stating that it just brought too much risk (even though I made them aware of the Airbnb $1million Host Protection Policy). Thankfully, after being turned down by three other local agents and scouring the internet–I found Ian Smith at Proper Insurance. Not only is he a real live human being who is absolutely wonderful to work with, he answered all my questions, made setting up the policy so easy–AND saved me over $200/month (literally cut my insurance bill in half). Thankfully, there is an insurance company that understands the needs of Airbnb hosts with knowledgeable agents to assist you in securing the policy that best fits hosts needs!Melissa Stukenholtv
Here at SeaBreeze Vacation Rentals, we proudly manage some of the most beautiful properties in San Diego county. When our owners ask us about insurance, we exclusively recommend Cade Bachman at Proper Insurance. Cade’s knowledge, service, and charisma has consistently impressed our owners – who deserve a high level of service. Bottom line, Proper has the best policy in the U.S., their customer service is great, and they protect our commission income if our owners have a claim. We at SeaBreeze look forward to working with Proper Insurance for years to come.Jonah Mechanic - Founder, SeaBreeze Vacation Rentals
I have been very satisfied with the level of service that I have received with Proper Insurance and the Lloyd’s policy that I purchased for coverage as an AirBnB host. I am not listing my home right now, but if that changes, I will go right back to them. During the time, unfortunately/fortunately, I had a liability claim. I say fortunately, because It was taken care of by my policy to 100% satisfaction in timeliness and professionalism.Sherri Billings
Proper Insurance has the most informative and knowledgeable team of vacation rental insurance professionals. They responded quickly to all my questions and concerns. Their application process was quick, easy and stress-free. With Proper Insurance as my partner, I can confidently use my home as a vacation rental.Pamela Manno
I have searched far and wide for an insurance policy to cover my vacation rental and my other commercial needs. I rent out my property for overnight stays as well as events and filming. Proper’s policy thru Lloyd’s of London is just what I needed. Ashley has been a pleasure to work as she is very accessible and happy to answer all my policy questions. Darren, the owner, was very straight with me in describing what the policy does and does not cover. He also advised me that I would not be covered for Workers Comp with the commercial policy which I was not even aware I needed. That is the kind of help I want. People giving me answers to questions that I don’t even know enough to ask. With Proper Insurance I really feel like I have a partner who is on my side and cares about me.Tim Vlahos
I am extremely pleased with Proper Insurance as my insurance provider for my vacation rental. After searching multiple sites and trying to ensure that I would be protected; Proper Insurance has, by far, the best coverage. Cade responded to my never ending questions the same day and was very patient in helping explain what would happen in different scenarios. Signing up was incredibly easy with an online form, and I was able to get same day coverage.Samantha McClung
From initial contact to actually obtaining our vacation rental insurance coverage, this process was amazingly smooth. Having been in the vacation rental business for almost 10 years, this is our third or fourth time to scope out insurances to stay in front of our needs. Working with David at Proper has been the easiest, quickest and smoothest process by far. In addition, we have more coverage at a lower price than what we were previously paying. A huge plus is also that I can understand the policy! Thank you!Debi Hertert
Thought I’d let you know I just posted in three different places on the Airbnb community blogs that Proper Insurance is the way to go for short-term rental insurance. Everyone out there is asking the same question on these blogs— where can I get coverage for my vacation rental, what should I do, etc. There is a lot of confusion about what kind of policy is needed, what companies will insure vacation rentals, whether Airbnb insurance is sufficient. Anyway, I am so happy to have come across Proper that I thought I’d get the word out.Anonymous Host
I very much recommend the service that’s provided by Proper Insurance Services, LLC. Multiple associates, including myself, have been working with Ashley Price over at Proper Insurance for several years now. Her expertise and attentiveness toward working with our clients, and myself comes second to none. Ashley brings a level of professionalism by delivering upon our high expectations over here at Vacation Palm Springs. Even more importantly, Ashley exceeds our clients expectations time after time with her promptness and knowledge of the insurance industry.
I’ve had dozens of my clients inform me that Ashley makes the process of acquiring the “proper insurance” for their short-term vacation rental property easy and seamless. I definitely recommend Ashley Price over at Proper Insurance for three main reasons: she does an excellent job, she’s always punctual, and she offers our clients a competitive rate.
The level of service that Ashley Price delivers for our clients makes it extremely easy for me to recommend her and Proper Insurance, LLC for the property protection that you’re looking for.Nathan Jordan - Business Development, Vacation Palm Springs by Wyndham Vacation Rentals
Proper Insurance® from Lloyd’s of London
Lloyd’s is the world’s specialist insurance and reinsurance market, bringing together an outstanding concentration of underwriting expertise and talent. It is often the first to insure emerging, unusual and complex risks.
Around 80 syndicates are underwriting insurance at Lloyd’s, covering all classes of business. Together they interact with thousands of brokers daily to create insurance solutions for businesses in over 200 countries and territories around the world. Lloyd’s insures the majority of FTSE 100 and Dow Jones industrial average companies.
Lloyd’s success has been built on its reputation for paying all valid claims. The claims service provided to policyholders remains a cornerstone of the market’s business.”
- Lloyd’s enjoys strong financial security supported by excellent ratings. Visit Lloyd’s for detailed information.
- Proper Insurance® is a Coverholder at Lloyd’s. There are only 4,000 Coverholders in the world.
HomeAway is a world leader in vacation rentals and has recognized Proper Insurance® as their premier vendor for comprehensive insurance. Vacation rentals owners and their properties are the core of the HomeAway brand, and they want to make sure you and your property are protected. Nothing is more important.
The Proper Insurance policy includes coverage enhancements no other carrier offers, and had the vacation rental owner in mind during the development with Lloyd’s. This HomeAway endorsement is a testament to the coverage and claims service provided.
More Companies Recommend Proper Insurance®
The Rule of 3 for Insuring Short-Term Rentals
The team at Proper Insurance® is a collaboration of individuals with 30+ years experience in niche insurance. We have experts engaged at all levels of the vacation rental industry and understand the risks involved. The Proper vacation rental insurance policy was written with one thing in mind, YOU, the property owner. What are the risks and exposure involved and how do you properly insure them? We currently insure vacation homes, duplexes, townhouses, condos, cabins, apartments, and much more.
LIABILITY: The single biggest exposure you have as a vacation rental owner is liability. When you open your door as the owner, you are also opening yourself up to liability risk. This liability risk is there whether you are simply renting a downstairs apartment or your entire property. What if a guest were to injure themselves while staying at your property? What if you were found to be liable? Maybe the shower was not thoroughly cleaned and a guest slipped on soap scum? Or worse, the vacation rental caught fire and resulted in a guest’s death. The Proper Insurance policy provides $1,000,000/$2,000,000 in commercial/business general liability. You are covered. And, when the vacation rental also “doubles” as your primary residence, 1,000,000 in personal liability is included in the policy.
BUILDING & CONTENTS: The second biggest exposure you have as the vacation rental owner is the actual property itself (building and contents). What if a guest were to accidentally start a fire and burn your property down? Or steal/damage your contents? The Proper Insurance® policy insures your building and contents as a business (commercial form) with replacement cost (new for old) on special form (all risk). The reason Proper uses a commercial form is because there are no standard occupancy restrictions as in a homeowner’s policy. This means at the time of a covered loss, the property can be occupied by you the owner, friends or family, paying guests, or even be vacant as we remove the vacancy clause. It’s the only way for a vacation rental owner to properly insure their building and contents.
BUSINESS INCOME: Another big exposure you have is lost rental income, or business income. You have worked extremely hard to turn your property into an income generating short-term vacation rental business. What if a tree fell on your roof and you could no longer rent your property for the summer? Or worse, you had a total loss on the property as a result of a fire or hurricane? You need to protect the income your vacation rental generates. The Proper Insurance® policy insures your vacation rental income as “actual loss sustained” with no time limit, what this means is you are only subject to the limit of insurance you choose for your insurance policy. Some owners only insure $10,000 while others elect to insure $250,000. It’s your choice as income varies significantly between owners.
What is considered short-term renting?
In the insurance world, a property that is rented for less than 30 days at a time is typically considered short-term. A property in which the renter does not reside/live at the dwelling. Short-term rentals can be found on websites like HomeAway, VRBO, Airbnb, TripAdvisor, Vacasa, and many more. Many home insurance carriers have denied coverage if short-term renting was not disclosed by the insured, see Emily Richer Vs Travelers Insurance – July 2017
Who is Proper Insurance?
Proper Insurance Services, LLC is a licensed insurance agency incorporated in the state of Virginia. An insurance agency is an office that is licensed to sell insurance products.
Does Proper Insurance pay claims?
Insurance is a three party transaction. There is the insured (you), the insurance agency (salesman/Proper), and the insurance company (underwriter). The insurance company pays the claims. The Proper policy is underwritten by Lloyd’s of London which is AM Best’s rated A. Lloyd’s has an excellent reputation for claims paid and is considered premier in the industry. They are the founding company of insurance over 325 years ago.
Why does my homeowner's policy not cover my short-term rental?
All homeowner’s policies carry a “business activity exclusion”. In other words, any claim involving a “business activity” could rightfully be denied.
Is my short-term rental really a business?
Yes. More and more cities like Austin, Santa Barbara, New Orleans, Nashville, and Chicago are now requiring short-term rental owners to carry a business license and carry $1,000,000 in commercial liability. They are also putting in requirements for occupancy tax collection, like a hotel. None of these are requirements for a long-term lease rental.
I have a landlord policy and have been told this covers my short-term rental, is this correct?
Landlord policies also carry a “business activity” exclusion. Landlord policies are written for landlords, not business owners. A long-term lease rental is not a business. Let’s use a liability example: A renter leases your home for six months. Two months later he/she “slips and falls” in the shower because there is soap scum built up on the tub floor. Does this liability fall on the landlord? No, of course not, it’s the tenant’s responsibility to keep a clean tub. Now, the same situation. A vacationer rents a home for a week. You better believe it’s the property owner’s responsibility to keep a clean tub. The vacationer assumed they were renting a clean/safe property. No different than a hotel. The liability falls on the property/business owner.
How do I get covered for business activity?
You buy a business insurance policy. The Proper Insurance policy is a business policy. It covers your business property (rental home/contents), business liability, and the business income it generates.
If I insure my short-term rental as a business, can I also stay there?
Yes. There are no standard occupancy restrictions on a business policy. This means the property is insured while you stay there, friends or family, and of course paying guests.
My short-term rental is also my primary residence, can I still purchase the Proper Policy?
Yes. If the short-term rental home is also your primary residence, Proper simply adds $1,000,000 in personal liability and $50,000 in loss of use to relocate in the event the property is being rebuilt. This is very important if you do not carry a homeowner’s policy elsewhere.
What if I also live at the short-term rental, can I still purchase the Proper policy?
Yes. You have the same business exposure. We see every scenario imaginable. You live upstairs and short-term rent the downstairs. You live in the main home and rent out the guest house, etc.
If I have the Proper policy do I keep my homeowner's or landlord policy in place?
No. The Proper policy is designed to fully replace the current coverage you have. You would cancel your current policy.
Does the Proper policy cover vacation rental condos and homes?
Yes. The Proper policy covers single family homes, condos, duplexes, town homes, and more. It does not require to be defined as a vacation rental/short-term rental etc.
What is personal liability?
Personal liability is found on homeowner’s policies. It covers you for personal negligence and follows you anywhere you go in the world. It’s very important to carry personal liability. This is why Proper adds it to our policy in the event your short-term rental doubles as your primary residence. There is no reason to add it in the event you carry a homeowner’s on another residence, as you would be “double insured”.
Does my personal umbrella cover over my short-term rental?
No. The same “business activity” exclusions apply as it’s personal. However, standard personal umbrellas do cover over a long-term landlord property. It’s not a business.
What is a commercial umbrella?
A commercial umbrella is a policy that covers “above and beyond” a standard business policies liability limits. Since the Proper policy is a business policy and carries $1,000,000/$2,000,000 in commercial general liability, it does suffice as the underlying policy for a commercial umbrella. Proper sells commercial umbrellas. Contact your Proper representative to get pricing and information.
I have my short-term rental under a Corp is this OK?
Yes. In fact, Proper encourages this. Since your short-term rental is a business it’s always smart to incorporate. We can write your policy with the named insured as an individual, partnership, LLC, Corp, or Trust.
Why don't all the major insurance carriers offer a policy for short-term rental properties?
In order for an insurance company to be profitable it must collect more premium than it pays out in claims. Most insurance companies see short-term rental properties as “high risk”. Lots of foot traffic and unknown variables. They simply don’t want to take on the risk. With the help of Proper, Lloyd’s of London understands the risk and is willing to insure it. Note: Lloyd’s of London has been underwriting for over 325 years.
Do you have more questions?
Proper believes in education first. We want to answer any and all the questions you have. Please call us today and talk with an expert, 888-631-6680.