SHORT-TERM RENTAL INSURANCE RECOMMENDED BY BIGGERPOCKETS

Yes, short-term rentals are an income-generating business and can, therefore, be excluded from coverage in traditional home insurance due to business activity exclusions commonly found in those policies. Increasingly, more local jurisdictions and state-imposed regulations of short-term rentals like Airbnb and Vrbo are requiring property owners and hosts to register, purchase a business license, pay business occupancy tax, and carry commercial business liability. 

No. The Proper policy fully replaces your current coverage. You can confidently cancel your current Homeowners or Landlord policy and replace it with the Proper Insurance policy. Proper Insurance offers the most comprehensive coverage available for your property, liability, and business revenue and is far superior to a standard Homeowners or Landlord/Dwelling policy. 

Airbnb’s Aircover Damage Protection is more like a warranty program in which they will make you contact the guest for proof of what happened. If the guest says, “It wasn’t me,” and refuses to pay for the damage, etc., then Airbnb has the complete authority to decide whether to fulfill that claim on your behalf.

Airbnb’s Aircover Damage Protection explicitly states that it is not insurance, so you are not listed as insured on their protection. Unfortunately, many hosts have come to the hard realization after a claim at their short-term rental that they have no power with Airbnb’s Aircover.

Additionally, Airbnb’s Aircover does not extend off of their booking platform, so if you ever short-term rent directly or on Vrbo, Booking.com, etc. You won’t even have the supplemental hope of AirCover. 

Yes, you can absolutely be held liable for the actions of your short-term rental guests. Like any business (think Walmart or Starbucks), you can get sued for injuries or accidents that involve your business (guests), whether they take place on your property or not.

This is because when you post your property as a short-term rental online, you are inviting these people into the community. This is especially true if your online listing also advertises your property as being a safe home and/or surrounding environment.

It could be as simple as a guest falling on the street getting out of an Uber in front of your short-term rental property or more complex like your guest assaulting your neighbor or a stray dog that attacks your guest. The only type of liability coverage that responds to claims like these is the robust coverage of Commercial General Liability, which is what Proper Insurance offers.

At Proper Insurance, we believe in the power of educating our clients. We understand that insurance can be confusing, especially for short-term rentals.

We want you to understand the details of the policy you currently have so you can decide if upgrading to the comprehensive coverage of Proper Insurance is right for your short-term rental business.

During a risk assessment, your Proper Insurance Super Agent will walk through your current policy to help you decipher the coverage it provides for your short-term rental. Our agents are experts in short-term rental insurance and can outline gaps or exclusions in other policies that, at a minimum, the insured should be aware of.

Common gaps or exclusions that we see in traditional Homeowners or Landlord policies are no coverage for business activity (like a short-term rental), no coverage for guest-caused damage, no coverage for amenities (bikes, golf carts, kayaks, etc.), and more.