WHAT MAKES A PROPER POLICY?
Short-term vacation rentals don’t fit into one insurance category, so we developed a specialty short-term rental insurance policy that covers both commercial and personal use of your vacation rental.
Commercial Business Liability
Your most considerable exposure as a vacation rental owner is liability. What if a guest were injured while staying at your property? Or injured off-premise? What if you were found liable? The Proper short-term rental insurance policy provides $1,000,000 & $2,000,000 coverage options for commercial business liability so you can rest easy.
Building & Contents Coverage
Proper provides unmatched property insurance coverage. Your building(s) and contents are upgraded to an ‘all-risk’ or exclusions based coverage form. In addition, we reimburse with replacement cost valuation, meaning you get new for old at the time of a covered loss. Finally, we carry no occupancy restrictions, so complete coverage is always in place.
Business Revenue Protection
You worked extremely hard to turn your short-term rental property into an income-generating short-term rental business. What if water, wind, or hail damage prevented you from renting your property? Our short-term rental insurance policy protects your income or revenue with “actual loss sustained” valuation and carries no time limit.
EXCLUSIVE SHORT-TERM RENTAL INSURANCE ENHANCEMENTS
Opening your home to short-term vacation rental guests also invites several insurance risks. As short-term rental insurance specialists, we’ve spent years optimizing and enhancing our policy, so you have protection for the most common and uncommon exposures STR owners face.
Homeowners, landlords, and business insurance policies exclude theft, vandalism, and intentional or malicious damages to your home and contents due to entrusting your property to another party. Our custom short-term rental insurance enhancement removes this limitation, so full property coverage applies as a vacation rental.
Pet & Animal Liability
Dog bites are the second most costly liability insurance claim in the U.S., with over $1B in settlements handed out annually. Unfortunately, most insurance policies limit this coverage and exclude certain animals or dog breeds. Our policy has no limitation on animals or pets so allowing guests to bring pets isn’t a cause for concern.
Bed Bug & Flea Protection
Yikes! No property owner wants to worry about unwanted critters in their vacation rental business, nor the hidden liability, cost of extermination, and canceled bookings that come with the infestation. Proper trademarked and was first-to-market custom bed bug and flea protection uniquely tailored for the short-term vacation rental industry.
The Covid-19 pandemic forever changed the work office and spotlighted mid-term rentals. Many travelers now book for 30+ days, which in most states provides tenants rights. What if a guest refused to leave and squatted at your property? Fear not, as our first-to-market squatters coverage provides both legal and lost income protection.
No vacation rental is complete without amenities for guests. Unfortunately, most policies exclude or have limitations for bikes, boats, scooters, hot tubs, golf carts, and more. Plus, the coverage is limited to your property line. We cover liability for standard amenities on and off your property line, so there are no concerns about how far the guests take the bikes.
All insurance policies carry a liquor liability exclusion for a good reason. Because we remove this exclusion, we afford coverage. So whether you want to include a beverage gift for your guest or simply ensure that undiscovered alcohol left behind by guests doesn’t end up in the wrong hands when the next group arrives, we’ve got you covered.
KNOW YOU’RE COVERED
PROPER DEVELOPED SUPER AGENTS
Because we only service the vacation rental industry, our short-term rental insurance knowledge base is unrivaled. We are proud of our customer feedback and our outstanding agents who make it all possible.
“I called several companies to get a policy. All required multiple days to offer a solid quote. Several came back and couldn’t meet the limits requirement. Proper Insurance came through like rock stars! Same day quote. Same day binding (so we could meet our closing date) AND BY FAR best pricing and coverage offered.”
“Proper Insurance is who I trust after 10 years of renting. They have seen me (owner/manager) and my clients, whom I rent for, through good and bad. They are THE insurance for vacation rentals covering not just the home but $1M in liability (a huge issue for renting) also lost income due to damage to the home if issues make it unrentable. AND MOST IMPORTANTLY – they deliver on their promise, I have tested it.”
“Coverage for our mulit-layer Airbnb was proving VERY difficult to find. The major carriers were inconsistent about their understanding of the coverage, and few were misleading until we got on the phone with their underwriting departments. Ian Smith understood our situation immediately and comforted us about Proper being built specifically for these types of short-term rental situations.”
“Bob Bradley was very helpful and extremely responsive via email, phone and text in helping me identify the right coverage for my short-term rental in NC. He carefully reviewed all the options available with me and helped me choose the best policy that would suit my needs. I highly recommend anyone looking for STR insurance to go with Proper.”
“Ashley from Proper Insurance is the best insurance agent I have ever worked with. She is extremely responsive, reliable and efficient. She also goes the extra mile to structure my coverage for the best price possible. As a long time realtor and an owner of multiple short term rental properties, I highly recommend Ashley and Proper Insurance for all your rental property needs. The best of the best.”
VRBO EXCLUSIVELY ENDORSES PROPER INSURANCE
Vrbo is a world leader in vacation rentals and has recognized Proper Insurance as its premier vendor for comprehensive short-term rental property and liability insurance. Vacation rentals owners and their properties are at the core of the brand, and they wanted to make sure their clients and properties are protected. Nothing is more important.
The Proper Insurance policy includes coverage enhancements no other insurance carrier offers and had the vacation rental owner in mind during the development with Lloyd’s. This Vrbo endorsement is a testament to the coverage and claims service provided.
Also Endorsed By:
A DEEPER LOOK INTO SHORT-TERM RENTAL INSURANCE
STR Insurance 101
Start with the Basics
The Proper Insurance policy was created to replace the property owner’s current homeowner’s (HO) or landlord’s (DP) insurance policy. It is written as a commercial business policy, giving the short-term vacation rental owner comprehensive coverage for their building(s), contents, commercial business liability, and lost business income. It also includes personal liability when the short-term or vacation rental “doubles” as the owner’s primary residence, which is the case for many Airbnb and Vrbo hosts.
The challenge was quadruple use or occupancy of the properties, as most vacation rental properties are used for short-term commercial and personal use and are sometimes unoccupied. Some have had guests or tenants for over 30 days. However, with trademarked endorsements, the Proper Policy covers your property and liability for all four uses.
Think of it as a homeowner’s policy, a landlord policy, and a business policy all wrapped into one!
It’s all-inclusive short-term rental insurance custom-penned with Lloyd’s of London and Concert Specialty and covers the unique risks associated with short-term vacation rental properties. It’s the most comprehensive short-term rental insurance an Airbnb or Vrbo owner can purchase, and it’s offered in all 50 states.
The Growth of Airbnb
The Airbnb phenomenon has changed the vacation rental and travel industry forever. Just ten years ago, there were only 200,000 short-term rental properties in the U.S., primarily marketed via local property managers; now, because of Airbnb, there are over 2,000,000. Virtually any property owner can advertise on Airbnb and instantly be competing with Hilton and Marriott for traveler’s lodging dollars. Unfortunately, with this ease of use comes huge property and liability insurance concerns.
When you allow guests or travelers to book your property on Airbnb, you have crossed into hospitality law, and homeowners or landlord insurance doesn’t cut it. In addition, you need to consider the significant damage a guest could cause to your property, such as a fire or vandalism. You also need to consider the safety of the guest and the fact you could be found liable for virtually any bodily injury they may sustain while staying at your property. These concerns require a comprehensive Airbnb insurance provider.
That is why Proper Insurance is uniquely designed to cover the many issues specific to Airbnb rentals broadly. Our focus is short-term rental exposure; our policy is the most comprehensive, and we have been rated “second-to-none” in the industry. So ditch your outdated and incomplete policy and contact Proper Insurance to cover your Airbnb property today.
Vrbo Still Leads In Vacation Rentals
Vrbo is the founding website for “vacation rental by owner” and was originally a classified ad listing service for the do-it-yourself property owner. As Vrbo grew in popularity among travelers looking to find short-term vacation rentals, so did its rank on 1st page of Google searches. Vacation rental managers began to list their inventory on Vrbo; the rest is history. Today, most professional data shows Vrbo as the #1 vacation rental booking website in the United States.
Vrbo insurance has never been more critical. Most Vrbo property owners are not fully aware of the limitations or gaps in coverage found in homeowner’s and landlord insurance policies. When you entrust your property to a paying guest, you fundamentally change the exposure in the insurance contract. Limitations now exist for damage caused by a guest, theft, vandalism, liability, and so much more. When you upgrade your Vrbo to Proper Insurance, you are not only filling those gaps in coverage but adding trademarked coverage tailored to vacation rentals.
Home Sharing vs Vacation Rentals
Home-sharing and vacation rentals are very different in the insurance world, so don’t be misled by a home-sharing insurance endorsement.
Home sharing is when the host lives on site and is favored by Airbnb as hosts offer a room for rent at their property. Essentially, it’s a bed and breakfast, hence Air Bed and Breakfast.
Unfortunately, domestic insurance carriers picked up on this and began offering a home-sharing endorsement that allows for this rental activity and typically provides limited coverage of $10,000 or so. The endorsement is inexpensive, typically costing $75-$100.
If you do not live on-site and consider the rental property your primary residence, then DO NOT purchase and rely on a homeowner’s insurance policy with a home-sharing endorsement. Many insurance agents are uneducated and do not realize coverage could be void.
A vacation or short-term rental is one the owner does not Iive on-site and would be considered an investment or secondary property. Vacation rentals need comprehensive vacation rental insurance as found in the Proper policy.
Upgrade to Proper Insurance
Proper Insurance leads the Nation in vacation rental insurance, with over 100,000 policies written in all 50 states. Backed by Lloyd’s of London, Concert Specialty Insurance, and an exclusive endorsement from vacation rental leader Vrbo, our company is built on world-class insurance coverage.
Our policy covers vacation homes, townhouses, condos, duplexes, cabins, cottages, apartments, and more. We can tailor a policy specific to your short-term rental property with expert vacation rental underwriters and agents.
A Lloyd’s of London Insurance Policy
Lloyd’s of London is considered the world’s most prestigious insurance market, best known for specializing in emerging or unusual risks. The Lloyd’s market comprises 80 syndicates interacting with thousands of brokers daily, creating business and personal insurance solutions in over 200 countries.
Lloyd’s success has been built on its character of paying all valid claims. In over 300 years, Lloyd’s has never gone insolvent and maintains an A+ Rating on Standard & Poor.
Lloyd’s insures most FTSE 100 and Dow Jones Industrial Average companies.
Lloyd’s is the world’s specialist insurance and reinsurance market, bringing together an outstanding concentration of underwriting expertise and talent. As a result, it is often the first to insure emerging, unusual, and complex risks.
Around 80 syndicates are underwriting insurance at Lloyd’s, covering all business classes. Together they interact with thousands of brokers daily to create insurance solutions for businesses in over 200 countries and territories. As a result, 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. As a result, the claims service provided to policyholders remains a cornerstone of the market’s business.”
Proper Insurance is a Coverholder at Lloyd’s. There are only 4,000 Coverholders in the world. Lloyd’s enjoys strong financial security supported by excellent ratings.
Visit Lloyd’s of London for detailed information.
A Concert Specialty Insurance Policy
As Proper continues to set the standard in the vacation rental insurance market, it was important for us to find more underwriting support, and we did with Concert Specialty.
With a deep understanding of specialty insurance and excellent financial ratings, Proper was excited to add Concert as an underwriter alongside Lloyd’s of London.
Visit Concert Group for detailed information.
Building and Contents Coverage
The Proper policy provides coverage for the building and contents or personal property. Proper automatically enhances the coverage form to ‘all-risk’ or exclusions based and includes replacement cost valuation. It’s superior in every aspect.
- Special form ‘all-risk’ cause of loss on building and contents
- Replacement cost valuation on building and contents (new for old)
- No sub-limit on damage caused by a renter (accidental/intentional/malicious)
- Vacancy clause removed with no occupancy restrictions
- No sub-limit on theft, vandalism, or water damage
- Back-up sewers and drains
- Loss assessment
- Debris removal
- Unscheduled structures
- Ordinance or law (optional)
- Bed bug extermination & lost revenue (optional)
- Squatters (optional)
Commercial General Liability
With the explosive growth of vacation rentals, cities, counties, HOAs, and even some states are passing laws and ordinances concerning short-term rentals (STRs). The common thread is that an STR is a business no different than Hilton, and hospitality and insurance laws should apply. Because the Proper Insurance® policy is a business policy and carries commercial general liability, it complies. All short-term vacation rental property owners need commercial insurance.
- $1,000,000 standard occurrence limit, with $2,000,000 available
- Suffices for all STR proof of insurance requirements
- Liability extends beyond the premise and follows the guests
- Enhanced for pet/animal, liquor liability, and invasion of privacy
- Includes advertising injury and communicable disease
- No exclusions on assault, battery, or molestation
- Continues over amenities such as bicycles, golf carts, hot tubs, pools, fishing, rec areas, small watercraft, and more
- Additional $1,000,000 in personal liability when rental “doubles” as a primary residence
Business Revenue Protection
When a covered cause of loss occurs, such as a fire, wind damage, water damage, or vandalism from a guest, current and future bookings are typically canceled to accommodate repairs.
This is why Proper business revenue protection is a must-have coverage for all short-term vacation rental owners.
- Paid on an ‘actual loss sustained’ valuation
- Reimburses lost revenue vs. loss of rents
- No time limit on coverage payout
- Only subject to the limits you choose