In four short years, Proper Insurance® has written over 30,000 insurance policies for vacation rental owners across the U.S.  A huge part of our success has been the referrals we receive from vacation rental managers.  Small and large, our strategy with managers has always been to provide a superior product, pay claims, and provide world-class customer service.  Because of this, Proper gains property managers’ top referral spot, and has become a household name for short-term vacation rental coverage.

Many Managers do not realize their commission is protected when their owners carry Proper Insurance

Some vacation rental managers may have heard about our trademarked insurance endorsement titled, “Business Income – Property Managers Commission”, but very few understand exactly how it works.  Teresa, the owner of Mountain Laurel Cabin Rentals (MLCR), and one of her owners Sol, were kind enough to let Proper use a recent insurance claim as a, “Case Study” to highlight how this unique endorsement works.  But first, for anyone not familiar with Proper, let’s give a quick 101.

Vacation Rental Insurance: A Lloyd’s of London Policy

Four years ago, with the backing of Lloyd’s of London, we developed a unique insurance policy tailored for short-term vacation rental owners.  The policy replaces the property owners current coverage, which is typically a homeowners or landlord policy.  Essentially, it’s commercial homeowner insurance.  The problem with insuring vacation rentals lies in occupancy, as virtually all have triple-use.  At times throughout the policy period the property is likely used personally by the owner or friends, at times or most of the year it’s used as a short-term vacation rental, and at times it may even be unoccupied for days or weeks.  This multi-use is what breaks insurance contracts down and creates gaps in coverage.  Technically, the owner should carry two or three separate policies.  However, because of Proper’s trademarked endorsements, we offer one-policy that covers the building(s), contents, income, and liability, regardless of occupancy.

Now let’s look at this “Case Study” with MLCR regarding our “Business Income – Property Managers Commission” endorsement

When vacation rental managers refer Proper, not only do their owners get superior coverage, but managers are automatically covered under the owner’s $1,000,000 of commercial general liability and their commission or business income is covered.

Sol is insured with Proper and her vacation rental is managed by MLCR.  She recently filed a wind & hail claim in which some trees fell and damaged her outside deck and stairs.  Because of the property damage, she also lost income as her property could not be rented for 60 nights during the repair period. The total lost income on the property was $8,400.  BUT, because of Proper’s unique endorsement, MLCR received 35% of this $8,400, or a check for $2,940.  Please take 2 minutes to read the actual loss letter and check sent to MLCR.

Full disclosure: we spoke to Teresa and Sol and they both gave Proper permission to use this letter and their names.

This have never been done before with insurance, and the only way it works is if the managers agreement, “specifies as such”.  With over 30,000 policies written, most vacation rental managers have at minimum a few clients insured with Proper. Please take another 2 minutes and read the actual endorsement here, which also has an explanation of, “specifies as such” on page 2.

You might be asking if owners would be upset to know this endorsement existed in the Proper policy?  And the answer is no.  Our policy is about coverage and is superior to all other carriers offering coverage for short-term rentals.  People feel comfortable recommending Proper for this reason- the endorsement is simply a nice perk.

Also, insurance is designed to make you whole again, not better off than you were, and with this claim, both Sol and MLCR were made whole again.  Because of the tree damage, Sol did not lose $8,400 of income as MLCR would have taken their normal 35% if the damage had not occurred.  All Proper’s endorsement does is pay the owner what they lost, and the property manager what they lost because of the claim.

Hopefully you have a better understanding of how our unique endorsement works.  If you are a vacation rental manager and would like to start recommending Proper, please browse our website, email us at , or better, give us a call at 888-631-6680.