There is something about bed bugs that makes all vacation rental owners uneasy. Not only are they a nuisance, but they pose real property and liability concerns. With over 30,000 vacation rental insurance policies written, Proper Insurance has listened to its policyholders and delivered a first-of-it’s-kind endorsement.
$15,000 in extermination coverage with no deductible
When bed bugs are discovered at a vacation rental, the first order of business is to get an exterminator. The average exterminator cost in the U.S. to entirely remove bed bugs is nearly $2,500. Not only does Proper’s endorsement cover this extermination cost, but we do NOT apply a deductible!
$15,000 in lost business income with no deductible
The second order of business when bed bugs are discovered is to remove the current guests and cancel the next booking. Depending on how quickly an exterminator can be booked and how bad the infestation is, vacation rental owners almost always lose income as a result. The Proper endorsement pays up to one week’s worth of lost business income as a result of the bed bug claim. Not only is this a vacation rental industry first, but we believe it’s an insurance industry first.
Please note, the combined maximum coverage limit of extermination cost and lost business income is $15,000.
What about bed bug liability?
Unfortunately, guests sue and sue often when they are bitten by bed bugs. Here is a recent bed bug liability lawsuit that settled for $200,000. Granted, this well-documented lawsuit was against a hotel, but vacation rentals are no different in the eyes of hospitality law.
Many insurance carriers flat exclude coverage for “infestation” so it’s highly recommended you confirm with your insurance carrier whether coverage exists or not. If you don’t have coverage, this $200,000 settlement would be on you, in addition to your attorney’s fees.
The reason more vacation rental owners choose Proper is that we only do one thing, and that’s insure vacation rentals. We understand the industry and the exposures involved.
We encourage you to take 5 minutes and enter your property information below; then one of our expert underwriters will reach out to tailor a policy for you!