A Case Study: “Business Income – Property Managers Commission”

Proper Insurance has written over 100,000 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 property 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 has gained property managers’ top referral spot for short-term vacation rental coverage.

Two people shake hands over a wooden desk and a paper contract.

Proper Insurance Covers Vacation Rental Property Managers Commission

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

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 owner’s current coverage, which is typically an inadequate homeowner 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.

Case Study: Mountain Laurel Cabin Rentals

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. (Teresa and Sol gave us permission to use this letter and their names.)

This has never been done before with insurance, and the only way it works is if the manager’s agreement “specifies as such.” With over 100,000 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. 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, www.proper.insure, email us at info@proper.insure, or, better, give us a call at 888-631-6680.

Quote Your Short-Term Vacation Rental Today

Interested in a policy to protect you and your business from liability and damage claims? Proper Insurance leads the nation in short-term rental insurance, with over 100,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from vacation rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage.

Proper’s policy covers vacation homes, townhouses, condos, duplexes, cabins, cottages, apartments, and more. With expert vacation rental underwriters, we can tailor a policy specific to your short-term rental property.

About the Author

Proper Insurance

Proper Insurance is the nation's leading short-term vacation rental insurance provider, with the most comprehensive policy on the market. We protect homes in all 50 states with unmatched coverage for your property, revenue, and business liability, customized to include guest-caused theft/damage, liquor liability, amenity liability (bikes, kayaks, hot tub, etc.), bed bugs, fleas, squatters, and more.


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